Former Buckholts Police Chief Johnny Shawn Newsom has filed a federal civil rights lawsuit accusing the City of Holland and several city officials of orchestrating a series of actions that he says dismantled his law-enforcement career and led directly to his arrest, indictment, and the suspension of his peace officer license. The lawsuit, filed Jan. 21, 2026, in the U.S. District Court for the Western District of Texas, presents a detailed factual narrative describing how internal disputes over pay, spending authority, and administrative control escalated into termination and criminal prosecution.

The civil case was filed after Newsom had already been indicted and arrested, and while the felony theft case remains pending in Bell County. While prosecutors allege misuse of public funds, the lawsuit contends that the spending decisions at issue were long known to city leadership, approved through budgets and practice, and later recharacterized only after Newsom’s relationship with city officials deteriorated.

Who Is Being Sued and the Basis of the Case

The lawsuit names Holland Mayor Johnny Kallus, the City of Holland, city administrator Sandy Starks, and former city employee Paula Byrd. Each individual is sued in a personal capacity, while the city is accused of failing to adopt policies, supervise employees, and prevent constitutional violations during the events that led to Newsom’s termination and arrest. Newsom brings the case under federal civil rights law, alleging violations of the First, Fourth, and Fourteenth Amendments. He seeks compensatory damages, punitive damages against certain defendants, declaratory relief, injunctive relief requiring policy changes, attorney’s fees, and reinstatement-related relief, and he has requested a jury trial on all claims.

Newsom’s Law-Enforcement Career and Role in Holland

According to the lawsuit and state licensing records, Newsom’s law-enforcement career spans decades and includes long service with the Williamson County Sheriff’s Office before he became police chief in Holland in 2013. The lawsuit describes Holland as a small city where department heads routinely handled responsibilities beyond traditional policing due to limited staffing and infrastructure. Newsom alleges that for most of his more than ten-year tenure as police chief, city leadership raised no criminal concerns about his management of budgets, equipment, or city resources. The complaint portrays his role as one involving broad administrative discretion that was accepted until disputes with city officials intensified.

The Animal Rescue Program and Spending Practices

According to the lawsuit, the dispute that ultimately led to Newsom’s termination and later criminal indictment traces back to an animal rescue program he says he was directed to establish and operate. The complaint states that the program was created in 2014 at the direction of then-Mayor May Smith after Bell County transitioned away from a no-kill shelter model, leaving municipalities responsible for housing and caring for animals picked up by animal control. Newsom alleges the Holland City Council formally approved the program and authorized funding to support it.

The lawsuit describes the program as labor-intensive because Holland lacked an animal control facility. According to the complaint, Newsom and his wife housed rescued animals at their personal residence, caring for dogs, cats, geese, guinea pigs, and other animals turned over to the city. Newsom alleges his wife became certified in animal control to volunteer in caring for the animals and that they assumed daily responsibility for feeding, medical care, transportation, and coordination with veterinary clinics.

Newsom claims that although the city allocated a budget for the program, his wife personally paid the majority of veterinary and medication expenses out of pocket. The lawsuit further alleges that Newsom spent approximately $6,000 of his own money to hire a welder to construct kennels on his personal property, knowing those improvements could not later be transferred to the city. According to the complaint, he was never reimbursed for those expenses.

The lawsuit alleges that city leadership was fully aware of how the program operated and increased its budget twice, eventually raising it to $4,500. Newsom claims Mayor Kallus told his wife that the budget needed to be fully used or risk being reduced in future years, reinforcing the understanding that program spending was authorized and expected. For nearly a decade, the complaint states, no city official questioned the program’s expenditures or structure.

Spending Oversight and Recordkeeping Inside City Hall

The lawsuit repeatedly points to the absence of written financial policies within the City of Holland. Newsom alleges department heads were allowed to make purchases under certain dollar thresholds without prior approval and that receipts were submitted after expenditures were made. According to the complaint, former city secretary Paula Byrd admitted she routinely deleted or destroyed receipts after approximately six months to avoid managing large volumes of paperwork. Newsom claims that practice later became significant when records needed to clarify disputed expenditures were no longer available and that the lack of documentation was later used against him.

Certification Pay Dispute and Escalating Conflict

Newsom alleges tensions escalated after the city approved certification pay for police officers based on licensure and training. According to the lawsuit, he questioned why he was not receiving the pay tied to his credentials despite the ordinance applying to officers in his position. The complaint alleges Mayor Johnny Kallus warned Newsom not to pursue the issue and suggested there would be consequences if he did. Newsom claims this marked a shift in how he was treated by city leadership and preceded later disciplinary actions.

Arrival of a New City Secretary and Shift in Treatment

According to the lawsuit, conflict intensified after Sandy Starks became city secretary in September 2023. Newsom alleges Starks had no formal training in municipal finance yet was placed in charge of the city’s budget and financial records. The complaint alleges Starks began redirecting vendor invoices to herself rather than requesting receipts from Newsom’s wife, who had historically maintained them. Newsom claims Starks accused him and his wife of using city resources for personal benefit despite knowing their personal animals ate different food than the rescue animals.

Phone Accounts, Credit Cards, and Disputed Charges

The lawsuit describes how some disputed charges allegedly arose from technical issues rather than intentional misuse. Newsom alleges he had both a city-issued Apple phone connected to a government credit card and a personal Apple phone connected to his own credit card. According to the complaint, when contacts were transferred between devices, the accounts became inadvertently linked, causing some personal purchases to be charged to the city card. Newsom alleges that in prior years, such errors were handled administratively, with reimbursement made to the city, and that the city attorney had previously advised that reimbursement was sufficient.

Allegations of Improper Access to Private Information

One of the most detailed sections of the lawsuit accuses Starks of accessing Newsom’s private information without legal authority. Newsom alleges Starks impersonated his wife to obtain purchase histories from vendors, accessed veterinary and retail records without subpoenas or warrants, and relied on personal relationships to obtain information. The complaint further alleges Starks arranged for the deletion of Newsom’s text messages and contacts through a telecommunications provider. Newsom claims these actions constituted unlawful searches carried out under color of state law.

Termination From Holland and Closed-Session Hearing

Newsom was terminated from his position in December 2023 following allegations of unauthorized credit card charges and a missing firearm. According to the lawsuit, no evidence was presented to substantiate the firearm allegation, and no criminal charge was filed related to it. The complaint states Newsom requested a public hearing to contest his termination. Instead, the Holland City Council held a closed-session hearing, which Newsom alleges violated state law and denied him procedural due process.

The Bell County Indictment and What Prosecutors Allege

The criminal case against Newsom formally began with a Bell County grand jury indictment returned on Sept. 24, 2025. According to the indictment, Newsom is accused of theft of property valued at $2,500 or more but less than $30,000 while serving as a public servant, a third-degree felony under Texas law. The indictment alleges the conduct occurred while Newsom was police chief of the City of Holland.

The charging instrument states that between October 2020 and November 2023, Newsom unlawfully appropriated property without the effective consent of the owner and did so by deception. The indictment alleges the property came into Newsom’s custody by virtue of his status as police chief and identifies the City of Holland, through then-Mayor Johnny Kallus, as the owner.

The indictment does not list individual transactions but alleges the total value of the property falls within the felony range. Court records show the indictment was issued months after Newsom’s termination and after internal disputes over spending had already unfolded.

Arrest and Criminal Case Status

Following the indictment, Newsom turned himself in and was arrested in Milam County on a warrant issued out of Bell County. He posted bond and was later released pending trial. The felony theft case remains pending in the 478th Judicial District Court in Bell County. Newsom is represented by attorney C.J. Grisham, who also represents him in the federal civil lawsuit, and no findings of guilt have been made.

Buckholts Employment and Professional Fallout

After leaving Holland, Newsom began working as police chief in Buckholts. His employment there ended in October 2025 following his indictment and arrest, and he no longer holds that position. The lawsuit alleges Newsom lost substantial income and future earning capacity as a result of the criminal case and related consequences. He claims damages exceeding $140,000 tied to lost employment and contractual pay.

TCOLE Action and Career Consequences

Records from the Texas Commission on Law Enforcement show Newsom’s peace officer license is not currently eligible for appointment due to a felony arrest suspension entered in October 2025. Under state rules, the suspension remains in effect while the criminal case is unresolved. The lawsuit alleges the suspension effectively ended his ability to work in law enforcement and compounded the professional damage caused by his termination and arrest. Without an active license, Newsom is barred from serving in any peace officer role in Texas.

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