Case of contractor not paying a subcontractor.

Owner, O, makes contract with Contractor, K, to build an improvement on real estate. Contractor, hires Subcontractor, S, to do some of the work. O pays K. S never gets paid. Some evidence that K takes money and uses it to begin another project, unrelated to O's contract. The statute that I am looking at is Misapplication of Trustee Funds.

Under Property Code sec. 162.031, "(a) A trustee who, intentionally or knowingly or with intent to defraud, directly or indirectly retains, uses, disburses, or otherwise diverts trust funds without first fully paying all current or past due obligations incurred by the trustee to the beneficiaries of the trust funds, has misapplied the trust funds."

Final facts to consider. The real estate being improved, as well as O reside in County A. Contractor's business address is in County B. Contractor's bank (main branch) that receives the majority of the pmts is in County C, as well as 2nd relevant bank account, in County B.

Where all can C be prosecuted?

If more than one county CAN prosecute, which is the best county to prosecute.


Bonus Points:
Please cite any relevant caselaw or statutory authority for your position.


Thanks

Train A leaves Chicago at 10a.m. and averages 50mph. Train B leaves Atlanta at 1p.m. and averages 37mph. If the distance between Chicago and Memphis is 530 miles, how long will it take Train B to get to Hawaii?

If the Contractor never intended to pay the Sub, is it Theft of Services? The broad theft statute covers 'swindling' as well as a whole slew of old words that were just clever ways of saying,

"Whoa, you stole my _____"

For theft by deception where the alleged deception is a promise to do something, you have to have something besides the failure to perform to show intent. PenC 31.01(1)(E).

BTW, the first question I'd have in response to this "real life" law school (isn't that an oxymoron?) question is whether or not the provision you're quoting actually describes a crminal offense. The part quoted does not make that clear. If it's not pretty clearly stated there or somewhere else (e.g., a catch-all provision somewhere else in the same chapter)along with the level of offense or punishment range, then it's not a criminal offense and therefore cannot be prosecuted anywhere as such.

I am shocked, shocked to find that K doesn't always pay S!