Legal Question in Criminal Law in Texas

It is not clear to me if this is a civil or criminal matter. Because there is a contract involved, it is likely to be a civil matter, especially if the contract is written. However It really depends on the language of the contract. If she gave you money and told you to use it to purchase materials, that might be theft. However if she paid a contract price and part of that price was materials, that is less likely to be theft, especially if you used the money for something related to her job.

It is also possible that you have some claims against her under the contract. Again this depends on the language of the contract.

I would not rely upon what she says her DA brother in law told her. First, you don't know what she told him. She may have left out that there was a contract. If this were a crime it is likely that it would be charged as theft. Theft is the unlawful appropriation of the property of another. The existence of a contract makes it more difficult to show that the appropriation is unlawful. The range of punishment for most theft offenses depends upon the value of the amount taken.

It is difficult to predict what will happen as it is not clear how this will be pursued. If you have a written contract, I suggest you consult an attorney to review that contract with you to advise you of the rights of the parties.

If you do not have a written contract, I suggest you consult a criminal defense attorney as it is more likely that she will pursue this as a criminal matter.

If your debts are greater than you assets, you should consider consulting bankruptcy counsel about your situation.