Harris County assistant treasurer accused of stealing $35K to pay blackmailing dominatrix

HARRIS COUNTY, Texas — The second in command of the Harris County Treasurer’s Office was arrested Thursday after he was accused of stealing money from a credit union and several individuals in order to pay off a blackmailing dominatrix, according to court documents.

Gregory Wayne Lueb, 56, is charged with aggragate theft after he allegedly stole an estimated $35,000 from the Harris County Federal Credit Union.

On the Harris County treasurer website, Lueb is listed as the Harris County first assistant treasurer but the office confirmed he was terminated from this role on Tuesday. The suspect was a HCSO officer for nearly 28 years — eight of which he worked as an investigator in the force's financial crimes division.

Lueb claims he met his alleged blackmailer — a woman refered to as "Mistress Cindy" — on the bondage and sadomasochism website CollarSpace.com. Investigators said the dominatrix threatened to tell his wife about their relationship if he didn't meet her cash demands.

In a scheme that ran from Oct. 25, 2016 through Nov. 23, 2016, Lueb reportedly used stolen credit card information to make online payments towards his credit balance with the union. Shortly after the payments were made, investigators said the suspect would make a cash advance from the account and the online payment would be reversed.

Gregory Wayne Lueb, 56, is charged with aggravated theft.

A credit union manager was tipped off about the plot after noticing strange activity related to the account, which Lueb applied for in August 2016.

On Sept. 9, 2017, the manager discovered Lueb's account started with a $5,000 limit that was randomly raised to $10,000. The employee also noted the account was quickly maxed out by at least eight cash advancements, court documents stated. Investigators said online payments were also being made using credit cards belonging to unsuspecting, out-of-state cardholders that weren't listed on Leub's account. Those payments would eventually be reported as fraudulent.

In December, the account was closed for lack of payments and had a remaining balance of $42,183.82 including interest and other fees.

On Wednesday, Lueb was taken in for questioning and allegedly confessed to the crimes during an interview with investigators. He gave the sheriffs access to his phone and told officers he was being blackmailed by a woman who had given him explicit instructions on how to run the scheme, according to court documents.

The case remains under investigation and Lueb is the only suspect in custody at this time.

Lueb could face up to two years in prison if convicted, according to the Harris County District's Attorney's Office.

As a result of the criminal charge, Lueb’s financial expertise and control of massive amounts of taxpayer dollars, District Attorney Kim Ogg has called on county commissioners to
consider an independent financial audit of all the departmental financial accounts he handled.

“We are sounding the alarm,” Ogg said.“Lueb had extraordinary access to the taxpayer dollars of every agency, and this case strongly suggests the need for an independent audit of every account he touched.”

The credit union, which is self-insured, is the repository for county employees’ money.