The former campaign manager and long-time political adviser to Lt. Gov. David Dewhurst pleaded guilty Tuesday to embezzling nearly $1.8 million from Dewhurst’s campaign accounts for five years until his theft was uncovered in late 2012.
One-time Austin political consultant Kenneth “Buddy” Barfield faces a maximum sentence of 28 years in prison on three charges, including wire fraud, falsified tax returns and theft of campaign funds from a candidate for federal office.
Barfield, now residing in Alabama, entered the plea before U.S. Magistrate Mark Lane in federal court in Austin. He refused to comment after leaving the courtroom.
“While working on behalf of the David Dewhurst Campaign and Dewhurst for Texas, Barfield knowingly and intentionally engaged in a scheme to defraud the entities of campaign dollars for his own benefit,” a plea agreement signed by Barfield stated.
“Barfield used the stolen funds to pay for expenses such as his home mortgage, school tuition for his children, personal investments and other living expenses.”
Dewhurst campaign officials said Barfield concealed his theft from the campaign accounts by falsifying bank deposit slips, vendor invoices and finance reports to make it appear that the accounts had far more cash on hand than they actually contained.
In the meantime, Barfield and his side businesses, such as Alexander Group Consulting, were paid hundreds of thousands of dollars for services that were never performed.
Barfield earlier agreed to turn over his lavish West Austin home and various business assets to Dewhurst to settle a civil lawsuit filed by Dewhurst last year to recover the funds. A final judgment executing the settlement was signed by a state judge last November.
Sales proceeds from Barfield’s home, which has been listed at $2.8 million, will be pooled with the assets of Barfield’s businesses to repay Dewhurst’s campaign accounts for lieutenant governor and his 2012 U.S. Senate race. The home was valued at $1.37 million by the Travis County Appraisal District in 2013.