A former controller for Austin Freight Systems pleaded guilty to federal charges after prosecutors accused him of embezzling more than $3.2 million from the Texas freight brokerage. Mitchell David Slentz, 34, of Kyle, Texas, pleaded guilty June 29 to one count of wire fraud and one count of engaging in monetary transactions involving criminally derived proceeds. The U.S. Attorney’s Office for the Western District of Texas announced the guilty plea Tuesday.
Prosecutors outline alleged scheme
According to court documents, Slentz oversaw accounting operations, financial reporting and internal controls at Austin Freight Systems. He also submitted payment requests to JPMorgan Chase Bank for payments to company vendors. Prosecutors alleged Slentz fraudulently misappropriated company funds between October 2023 and March 2025. They alleged he completed 147 payments totaling approximately $3,277,937.35 and deposited the money into his personal bank accounts through interstate wire communications.
Court documents also describe how prosecutors say Slentz used some of the money. Prosecutors alleged he paid $25,000 toward student loan debt on July 24, 2024. They also alleged he paid another $33,887.83 toward student loan debt on Sept. 3, 2024. Financial analysis also showed deposits and or winnings exceeding $1 million through an online gambling platform, according to the Justice Department.
Prosecutors charged Slentz by information on May 14. He made his initial appearance before U.S. Magistrate Judge Dustin M. Howell on June 8. Assistant U.S. Attorney Joshua Somers is prosecuting the case. The FBI Austin White Collar Crime Task Force investigated the case.
Brokerage says operations continue
Austin Freight Systems confirmed the thefts occurred between late 2023 and early 2025. Company officials described the case as a lengthy process. “The wheels of justice move very slowly,” George K. Copeland, CFO and owner, and Brian Sutton, CEO and owner, said in a statement to FreightWaves.
The company described itself as a 30-year-old brokerage and said it remains financially sound. Company officials said Austin Freight Systems continues to operate in “a business-as-usual fashion.” They also said the company has been a member of the Transportation Intermediaries Association for 28 years. The statement added that Austin Freight Systems holds a 97 credit rating with DAT, an A+ rating with Truckstop.com and recognition as a Best Broker by the National Association of Small Trucking Companies.
Company officials said Austin Freight Systems has “fine-tuned our financial processes to prevent any such incidence from occurring again.” They also said they “eagerly await sentencing for these crimes.” The company did not provide additional details about the changes to its financial processes. It also did not comment on the pending sentencing.
FBI encourages companies to report fraud
The FBI Austin White Collar Crime Task Force investigated the case. The FBI San Antonio Field Office said financial crimes continue to threaten the transportation industry. “Whether it’s internal fraud or cyber-enabled cargo theft, financial crimes threaten the transportation sector, a critical infrastructure sector that underpins our nation’s economy, and can severely disrupt business operations and the flow of commerce,” Special Agent in Charge Daniel Faith said in a statement provided to FreightWaves.
“The FBI Austin White Collar Crime Task Force remains committed to investigating these crimes and holding accountable those who exploit positions of trust or target businesses for financial gain,” Faith said. “If you suspect fraudulent activity, report it to your local FBI Field Office or submit a complaint at IC3.gov.“
Slentz pleaded guilty on June 29. A federal district judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Justice Department has not announced a sentencing date.
The FBI has also highlighted a distinct category of criminal activity impacting the transportation industry. In a recent public service announcement, the agency warned of emerging threats involving strategic cargo theft. The FBI cautions that cyber threat actors are increasingly employing sophisticated, cyber-enabled techniques to impersonate legitimate businesses in order to hijack freight, steal high-value shipments, and reroute deliveries, driving a rise in strategic cargo theft. These actors specifically target the U.S. transportation and logistics sector, including organizations involved in shipping, receiving, delivering, and insuring cargo.
Click here for more articles on cargo theft and freight fraud by Phillip Brink.
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