Margie Gallardo, a former City of Cotulla employee, alleged in a civil petition filed in December 2024 that she worked for the city from Oct. 22, 2022, until her termination on December 29, 2023. In that filing, Gallardo said the city cited policy violations, conduct unbecoming a city employee, and usurpation of authority for personal gain, but she argued the real reason for her firing was that Carlos Benavides made false and defamatory reports to City Manager David Wright and Sandra Zertuche, the wife of Councilman Eloy Zertuche. The petition said Benavides falsely claimed Gallardo accepted $22,000 in kickbacks from Jose Montes and used part of that money to support Zertuche’s campaign. Gallardo, through her attorney, denied receiving or soliciting any bribe and sought monetary relief, including lost wages, emotional distress damages, exemplary damages, and a jury trial.  

The petition further alleged that Wright relied on those reports when deciding to terminate Gallardo and said she first learned of the accusations on December 27, 2023. The suit was originally filed on December 5, 2024, in La Salle County district court. The lawsuit also stated that a demand for retraction was sent in February 2024, but the statements were never withdrawn. At the time of her termination, the petition said, Gallardo’s annual salary was $47,000.  

Grand jury returned two criminal counts

That civil case took a more serious turn in 2026 when a La Salle County grand jury returned an indictment against Gallardo. The indictment listed two counts and showed bonds set at $15,000 on each. One count alleged forgery of a government document, and the other alleged theft tied to a public servant or government contractor context. The indictment was file on March 6, 2026, in the 81st/218th Judicial District Court.  

According to the indictment, the first count alleged that on or about August 18, 2023, Gallardo, with intent to defraud or harm another, passed an invoice and purchase request that had been altered, made, completed, executed, or authenticated so that it purported to be the act of Jose Herrera, who did not authorize it. The same count further alleged the conduct was done to obtain or attempt to obtain money in the amount of $1,600. The second count alleged that on or about December 19, 2023, Gallardo unlawfully appropriated United States currency from the City of Cotulla without effective consent, by deception, and with intent to deprive the city of the property. The indictment further stated Gallardo was acting as assistant coordinator for the Main Street program for the City of Cotulla and that the property had come into her custody or control by virtue of that status.  

After indictment and arrest, lawsuit was dropped

Gallardo’s lawsuit took a notable turn in 2026. She had alleged that Carlos Benavides made false claims that she accepted kickbacks and that those claims cost her her job with the City of Cotulla. But after a La Salle County grand jury indicted her in March 2026, and after Frio County records show she was processed on the charges on April 8, 2026, Gallardo dropped the lawsuit on May 8, 2026. In the end, the case she filed over allegedly false accusations was dismissed only after criminal charges were brought against her in connection with her former city role. 

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