Gatesville CEO Arrested, Charged in $300,000 Business Funds Case

The Coryell County Sheriff’s Office arrested 32 year old Timothy Cottongim of Gatesville on December 11, 2025, charging him with misapplication of fiduciary property over $300,000, a first degree felony. The arrest followed an affidavit summarized by the sheriff’s office after investigators received a complaint on October 8 alleging corporate funds were misapplied and federal contracts and documents were falsified to obtain credit.

According to the summary of the review, bank records for Mavrick Rentals showed numerous transactions inconsistent with legitimate business expenses. Investigators identified transfers and payments for veterinary bills, personal health care bills, grocery shopping, and transfers totaling more than $70,000 to Cottongim’s personal Cash App account. During an interview Cottongim reportedly “admitted to using the business account for personal expenditures.”

The investigation is ongoing and involves the Coryell County Sheriff’s Office Criminal Investigation Division, the U.S. Army Criminal Investigations Division, and the U.S. Secret Service. That mix of local and federal agencies underscores allegations that went beyond routine bookkeeping errors to include alleged falsification of federal contracts and documents to obtain credit, a claim that draws federal investigative resources.

For local residents the allegations carry several immediate implications. Renters, landlords, and local contractors who worked with Mavrick Rentals may face uncertainty about leases, ongoing maintenance contracts, and outstanding payments while accounts are reviewed. Small businesses in Coryell County depend on trust in local property management firms, and a headline case involving more than $300,000 in alleged misapplied funds could prompt clients and lenders to request more documentation before extending credit or signing contracts.

From a policy perspective the case highlights the importance of basic financial controls at small firms, including segregation of business and personal accounts, routine audits, and clear documentation for federal contracting. The involvement of federal investigators also signals heightened scrutiny where business activity intersects with federal contracts or credit applications.

Prosecutors and investigators will continue building their case, and local stakeholders will watch closely for developments that affect leases, local employment, and broader confidence in business practices within Coryell County.