An Amarillo woman, Selene Varela, has pleaded guilty to embezzling thousands of dollars from federal funds intended for COVID-19 pandemic relief for the homeless. Varela, 41, admitted on May 11, 2026, to theft concerning a program receiving federal funds, becoming the third former City of Amarillo employee to be convicted in connection with such schemes.
While working in the City of Amarillo's Community Development Department from 2020 to 2022, Varela managed the intake process for housing assistance. She created fictitious applications for funding, including fraudulently paying her own rent for six months, totaling $6,600. Varela also established accounts for fake landlords and tenants, submitting false applications and cashing the checks, ultimately embezzling approximately $41,350.
U.S. Attorney for the Northern District of Texas Ryan Raybould said, "We rely on our public officials to ensure that our laws our faithfully and dutifully executed. Instead, the defendants planned and executed a scheme to use their public positions to line their own pockets at the expense of folks in Amarillo who are homeless." Acting Special Agent in Charge Aaron McCullough with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) added that Varela "abused her position of trust by embezzling federal funds intended to help individuals experiencing homelessness secure stable housing."
This case is linked to two other former City of Amarillo employees. Amy Dixon pleaded guilty in June 2024 to embezzling $465,511.65 and was sentenced to 24 months in federal prison. Vanessa Robinson pleaded guilty in March 2025 to embezzling $121,325.21 and received an 18-month prison sentence. Varela now faces up to 10 years in federal prison, with her sentencing date yet to be determined.