Texas man admits embezzling $3.2 million to pay student loans, fuel online gambling, prosecutors say

A Texas man who siphoned off millions from his employer to wipe out tens of thousands in student loan debt and bankroll extensive online gambling has pleaded guilty to federal embezzlement charges, prosecutors said.

Mitchell David Slentz, 34, of Kyle, pleaded guilty in federal court to embezzling more than $3.2 million from Austin Freight Systems, according to the U.S. Attorney's Office for the Western District of Texas.

Financial oversight role detailed

Prosecutors said Slentz held broad responsibility for Austin Freight Systems' finances, managing accounting operations, overseeing financial reports and internal controls, and handling vendor payment requests submitted to JPMorgan Chase.

Between October 2023 and March 2025, Slentz executed 147 fraudulent payments, diverting $3,277,937.35 into his personal accounts via interstate wire transfers. He used part of the stolen money to make two student loan payments — $25,000 and $33,887. He also gambled heavily on an online platform, depositing and winning more than $1 million, the U.S. Attorney's Office said.

Charges and court proceedings

Slentz was charged on May 14, appeared on June 8, and pleaded guilty Monday to wire fraud and engaging in monetary transactions with criminally derived proceeds.

A federal judge will determine Slentz's sentence based on U.S. Sentencing Guidelines and statutory factors.

Investigation led by the FBI task force

The FBI Austin White Collar Crime Task Force handled the investigation.

CBS News Texas will provide updates as more information becomes available.