In response to a demand letter from JPMorgan Chase Bank in New York, County Attorney Jay Condie recommended that the Commissioners Court return $305,301.75 that was seized in 2023 after a cyber attack.
In May, the county received a demand letter from the Gemini Trust Company on behalf of JPMorgan Chase for the return of the funds. Condie began investigating the claim and reported two findings at the Monday Commissioner Court meeting.
First, that the money taken from the JPMorgan account “was not the money that we had lost,” Condie said. Since the seizure took place several months after the crime, the money from DeWitt County was no longer in the account.
“Secondly, that Gemini Trust Company did not receive notice of the forfeiture and seizure initiated by the district attorney’s office,” he said.
Condie said he could not find evidence that the district attorney’s office had sent notice, so there was a due process issue.
After the initial crime, DeWitt County’s insurance policy with the Texas Association of Counties (TAC) reimbursed $250,000 to the county. When the seizure and acquisition of funds from the JPMorgan account happened, the county returned the insurance payout.
Condie recommended paying the money to Gemini Trust rather than having to defend a lawsuit in New York. He said the TAC insurance policy would not cover those court costs. However, another disbursement of $250,000 from TAC will be forthcoming. The total loss to the county will be approximately $65,301.75.
The commissioners approved the payment of
$305,301.75 to Gemini Trust LLC.
