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