The Galveston County Consolidated Drainage District (GCCDD) has filed a lawsuit against HomeTown Bank, N.A., alleging the defendants facilitated fraudulent transactions which resulted in the loss of $1,292,750 from the district’s accounts. The case, filed in the 212th District Court of Galveston County on January 10, 2025, seeks recovery of the funds, damages, and legal fees from HomeTown Bank as well as an individual, Brian Kaiser.
According to the lawsuit, GCCDD maintains that the fraudulent activities occurred through unauthorized changes to account signatories at HomeTown Bank. The changes were allegedly made without proper verification, enabling Kaiser to orchestrate four wire transfers to fictitious entities. The transfers went unnoticed until the funds were entirely withdrawn.
The petition claims, “While GCCDD believed it was business as usual HomeTown decided to embark on a scheme of fraud, negligence and sloppiness of unprecedented proportions.” GCCDD also claims that “HomeTown’s clandestine and unilateral decision to change the signature card meant their colleague Mr. Kaiser was ceded control.”
The petition further alleges gross negligence, citing “The icing on the fraud cake for both HomeTown and their buddy Kaiser is that the new signatures on the faked signature card are all obviously wrong and all signed at the same moment.”
The lawsuit accuses the bank and Kaiser of negligence, professional misconduct, breach of contract, and conspiracy. GCCDD is seeking actual damages of no less than $1,292,750, punitive damages, interest, and reimbursement for attorney fees. A status conference is scheduled for April 3, 2025.
HomeTown Bank has yet to issue a public statement regarding the lawsuit. Court records show, as of this writing, that Kaiser has yet to be located.
