Husband, wife accused of misusing EMS funds could face April 1 trial

The case against a husband and wife accused of misappropriating funds while serving as executive director and bookkeeper of the Gonzales County Emergency Medical Services (EMS) could go to trial as soon as April 1.

James and Carla Russell are expected to appear in 25th District Judge William D. Old’s court at 9 a.m. Monday, March 25, for an announcement hearing to determine if both the prosecution and defense are ready to go to trial. The case has been given top preferential setting, so if they are ready to proceed, jury selection will likely begin one week later on Monday, April 1.

The Russells, who are being represented by attorney Robert Bland, are charged with misapplication of fiduciary property or property of a financial institution.  The couple are accused of embezzling thousands of dollars from the Gonzales County Emergency Medical Services. They are being tried by the Texas Attorney General’s office after the case was referring to them by County Attorney Paul Watkins. They have pleaded not guilty.

The Russells were each indicted by a Gonzales County grand jury in November 2019 on one count of misapplication of fiduciary funds in the amount of $30,000 or more but less than $150,000 and one count of theft by public servant in the amount of $30,000 or more but less than $150,000.

The pair were initially arrested on June 4, 2018 following a lengthy investigation into allegations of misappropriation of Gonzales County Emergency Medical Services (EMS) funds. Jim Russell previously served as the EMS director while Carla Russell was the EMS’ acting bookkeeper.

While Jim Russell was under investigation by several law enforcement agencies in January 2018, the EMS board placed him on administrative leave without pay. When his arrest became public, he was terminated by the board on June 26, 2018. The board requested that Carla Russell resign from her position following her arrest and she obliged. 

The indictment alleges that between January 2011 to June 2018 the Russells misapplied EMS funds —over which they had responsibility — for their own benefit. This occurred by depositing money meant for the EMS and CPR classes into their own personal bank accounts, overpaying themselves or other employees for unworked hours, being paid by other entities while simultaneously being paid by the EMS and mishandling donations to the EMS.

Another case which soon could go to trial involves a Gonzales woman who is accused of fatally shooting her ex-husband during a domestic dispute in August 2022. Carol Hunt Russell — no relation to James or Carla Russell — is accused by Gonzales police of killing Jesse Russell Jr., 53, of Gonzales, at a residence in the 400 block of Village Drive on Aug. 2, 2022, and wounding Jacquline Marlene Mathis, 58, of Gonzales, at a residence in the 1100 block of Hastings Street.

Carol Russell’s case is also on the announcement docket for Monday, March 25. She has remained in the Gonzales County Jail since her arrest in lieu of $750,000 bond. She is being defended by Eduardo “Eddie” Escobar.

Editor’s Note: Criminal defendants are granted the presumption of innocence until proven guilty in a court of law.