Daimler Truck Sues Former Employee Over $3.8M Theft
The Portland-based company alleges that a former staffer embezzled millions over a five-year period.
Updated on Oct. 16, 2026 in Financial Crime
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Daimler Truck North America has filed a lawsuit against former employee Terry Watson and his wife, Krystal Watson, for allegedly embezzling nearly $3.8 million. The company claims the scheme spanned five years and involved falsified billing records.
Why it matters
The company alleges that these funds were diverted for personal use, including luxury expenses and landscaping. Daimler Truck is now seeking a total of $6.6 million in damages to recover the stolen assets and cover legal costs.
Daimler Truck North America filed a civil lawsuit in October 2026 seeking $6.6 million in total damages. No criminal charges have been filed against Terry Watson or Krystal Watson as of this report.
The players
Terry Watson
He is the former Daimler Truck employee accused of embezzling nearly $3.8 million from the company.
Krystal Watson
She is the wife of the former employee and is named as a defendant in the company's civil lawsuit.
Daimler Truck North America
It is a major commercial vehicle manufacturer headquartered on Swan Island that has accused a former staffer of widespread financial fraud.
The details
The lawsuit alleges that Terry Watson falsified billing records by categorizing personal expenses as tools or materials while also selling gift cards intended for employee recognition. Funds were allegedly used for vacations, meal delivery services, and residential landscaping projects.
Timeline
Terry Watson began his employment at Daimler Truck in 2016.
Krystal Watson sent an email containing itemized personal expenses in October 2025.
Daimler Truck terminated Terry Watson in November 2025 after discovering the activity.
The civil lawsuit against the couple was filed in October 2026.
Legal Context
This case underscores the persistent risks of internal fraud that lead companies to overhaul their financial reporting protocols. Such litigation follows a pattern of corporate efforts to recover losses when internal oversight mechanisms fail to catch long-term employee theft.
While the litigation is a civil matter between the company and its former employee, such large-scale embezzlement investigations often prompt firms to implement stricter corporate security and vendor verification policies. Local residents and contractors in Portland may see changes in how Daimler Truck manages its billing and local facility procurement.
The takeaway
This case serves as a reminder of the importance of robust internal billing audits for companies of all sizes. Employees and management should be aware that unauthorized use of company credit lines or assets can lead to significant civil litigation.
Further reading
Find more updates on regional legal matters in the Portland Financial Crime section.
Source note: This article includes information reported by Oregon Live.
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