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‘DRAINED:’ Contractor involved in Houston’s water department bribery scandal accepts plea deal

Also new: trial date set for manager at center of investigation

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

Patrece Lee, faces charges related to the city water line contracts scandal. The shady contracts were first exposed by KPRC 2's 'DRAINED' Investigation and Investigator Amy Davis. (KPRC 2)

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.

KPRC 2 Investigator Amy Davis uncovers so-called charity named in city of Houston contract scandal. The KPRC 'DRAINED' Investigation first exposed city manager Patrece Lee and others for questionable city contracts using taxpayer money. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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.

Joseph Nerie walks with his attorney. He's accused in the waterline repair contract scandal first exposed by KPRC 2 'DRAINED' Investigation. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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.

Joseph Nerie, faces charges related to the city water line contracts scandal in Houston. The shady contracts were first exposed by KPRC 2's 'DRAINED' Investigation and Investigator Amy Davis. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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.

Sean Teare (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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.

KPRC 2's 'DRAINED' Investigation looks into sudden high-water bills for people who were told their meter sensors were updated. KPRC 2 Investigative Producer Andrea Slaydon talks with one water bill customer who is concerned about a new large bill and she's not the only one. What's going on? What can other customers expect? The KPRC 2 Investigates team is working to get answers. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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.
KPRC 2's 'DRAINED' Investigation looks into sudden high-water bills for people who were told their meter sensors were updated. Many customers say there is no way they are using the high amount of water they are being billed for. KPRC 2 Investigator Amy Davis is getting answers now two years into this investigation. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

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


About the Authors
Amy Davis headshot

Passionate consumer advocate, mom of 3, addicted to coffee, hairspray and pastries.

Andrea Slaydon headshot

Award-winning TV producer and content creator. My goal as a journalist is to help people. Faith and family motivate me. Running keeps me sane.