In the last 24 hours, significant developments have occurred in the investigation into a bribery and corruption scheme within the Houston Water Department.
As you may recall, our KPRC 2 ‘DRAINED’ Investigation first uncovered shady contract dealings last year. Then, in May 2024, a grand jury indicted seven individuals, including city employees and business owners contracted for waterline repairs.
Investigative reporter Amy Davis is closely following the court proceedings of those involved.
Trial scheduled for former manager Patrece Lee

The water department manager at the center of the alleged contract scandal is Patrece Lee.
She has been in jail since her arrest on May 30 and has not posted bail. On Monday, a judge scheduled her jury trial for Feb. 28, exactly one month away. Lee faces the most serious charges among the seven suspects. The Texas Rangers, who investigated the case, allege she orchestrated the entire scheme.
Lee is charged with six felonies, including engaging in organized criminal activity, abuse of official capacity, and four counts of bribery. Her bond is $560,000, requiring a $56,000 payment for release.
The contractor has some charges dropped
In another development, one of the suspects, Joseph Nerie, had his bribery and tampering with government document felony charges dismissed after pleading guilty to a misdemeanor charge of offering a gift to a public servant.
Nerie’s attorney maintains that her client is not guilty of tampering with government documents or bribery.
Despite the dismissal, the original criminal complaint indicates Nerie paid Patrece Lee over $77,000 during a 10-month period when his company was awarded waterline repair contracts. The Texas Rangers report that many of these payments were made through Cash App and wire transfers directly to Lee’s bank accounts.

This plea deal comes as new Harris County District Attorney Sean Teare takes charge.
An interview request with Teare about the pending criminal cases was declined. However, the prosecutor leading the investigation has been transferred to a new role, and an interview with the current prosecutor is scheduled for later this week.

The investigation continues to unfold, with millions of dollars wasted impacting the entire city. KPRC Investigates remains committed to keeping the public informed about the latest developments in this case.
Houston water bill improvement plan update
Houston Mayor John Whitmire committed to addressing the city’s water billing and meter reading issues in April 2024. As the new Water Bill Improvement Plan moves into its next phase, we told you in December that some Houston residents are experiencing new frustrations with their water bills.

Here are some key points from the new water bill complaints we are seeing:
- Many respondents report a sudden and significant increase in their water bills without a clear explanation.
- Some individuals have experienced a change from fixed billing to variable billing, resulting in unexpected charges.
- Respondents have contacted the water department but often feel their concerns are dismissed or unresolved.

READ MORE: You can check out the full ‘DRAINED’ Investigation here.