Bartolo Sanchez was supposed to appear in federal court in Midland for his arraignment on aggravated identity theft (4 counts), bank fraud and wire fraud charges.
However, the arraignment has been postponed to the afternoon of December 13th.
Federal investigators say that Sanchez -- who has served as the Mayor of Toyah since May 22, 2006 -- wrote a secret settlement agreement with Chesapeake Operating, Inc. on May 14, 2009.
The $228,132.54 settlement -- which was reportedly drafted by Sanchez unbeknownst to the Toyah City Council -- was supposedly set up to fund repairs of Toyah streets that had been damaged by Chesapeake Operating vehicles.
The money from the settlement reportedly went into a new Toyah bank account that Sanchez set up himself.
However, United States attorneys claim that Sanchez reportedly wrote checks to himself from that account and several other Toyah bank accounts to fund his personal business.
Sanchez also is accused of writing bogus mileage reimbursement forms to bilk the city out of more money.
As mayor of the 100 resident city of Toyah (which comprises all of 1.6 square miles), Sanchez had signatory authority on all city bank accounts.
However, a second signature was required on checks involving city money.
In order to keep the Toyah City Council from finding out about the fraud, Sanchez reportedly forged the required second signature on the checks.
Meanwhile, residents say that the arrest is shedding light on alleged corruption throughout the Toyah city government.
A town hall meeting to discuss the structure of Toyah's government is scheduled for 6 PM on December 11th.