Editor’s note: This article has been updated on Oct. 24, 10 a.m. EST to include additional details from the original civil complaint filed by Daimler Truck North America in Washington County Circuit Court, Oregon, including allegations involving corporate credit cards, falsified expense reports and the participation of another company manager.
Daimler Truck North America has accused a former fleet supervisor and his wife of misappropriating nearly $3.8 million over more than five years through an alleged scheme involving corporate credit cards, falsified expense reports and unauthorized purchases.
The lawsuit, filed Oct. 12 in Washington County Circuit Court in Oregon, names former Daimler employee Terry S. Watson and his wife, Krystal Watson, as defendants. The case, No. 26CV57242, remains open, according to court records.
In a 15-page complaint obtained by FreightWaves, Daimler alleges the couple misappropriated approximately $3.78 million between July 2020 and November 2025, using company funds to pay for vacations, home improvements, restaurants, personal fuel purchases and other expenses.
Daimler is seeking approximately $6.59 million in damages under Oregon’s racketeering law, along with other relief.
Daimler Truck North America, headquartered in Portland, manufactures commercial vehicles under the Freightliner, Western Star and Thomas Built Buses brands, among others.
Watson joined Daimler in March 2016 and was a Level 5 Fleet Supervisor in the Portland when he was terminated in November 2025, according to the complaint.
The company alleges Watson used his position to approve improper spending, falsify expense reports and conceal personal purchases by categorizing them as legitimate business expenses.
The complaint was first reported by The Oregonian/OregonLive.
Lawsuit alleges another manager helped approve expenses
According to the complaint, Watson began coordinating with his then-manager, identified by the pseudonym John Smith, around July 2020 to use company funds for personal purchases.
Daimler alleges Smith approved Watson’s corporate credit card expenses and that Watson sometimes divided invoices to keep individual charges below thresholds requiring higher-level approval.
The lawsuit also alleges Watson falsely categorized purchases under expense categories such as “Materials/Tools” and “Safety Equipment.”
In at least one instance, Watson allegedly impersonated Smith while speaking with a vendor to authorize a personal vehicle expense on Smith’s corporate credit card.
Smith moved to another position in January 2024 and was no longer responsible for approving Watson’s expenses, according to the complaint. Smith is not named as a defendant in the lawsuit.
The complaint further alleges that in February 2024, Watson arranged for a subordinate, identified by the pseudonym James Doe, to obtain a corporate credit card.
Watson then allegedly used the subordinate’s card to continue making personal purchases, submitted expense reports using Doe’s credentials and approved the charges as Doe’s supervisor.
Personal spending included vacations, landscaping and Uber Eats
The lawsuit alleges Watson and his wife used Daimler funds for thousands of personal expenses between 2020 and 2025.
Those purchases allegedly included vacations, schools, restaurants, food delivery services, household cleaning, landscaping, construction projects and fuel for personal vehicles.
Beginning in 2022, Watson allegedly hired contractors to perform construction and landscaping work at the couple’s Hillsboro, Oregon, residence, instructing vendors to bill Daimler for the work.
The complaint also alleges Watson diverted company fuel cards for use by family members and friends, including purchases of gasoline and car washes for personal vehicles.
Krystal Watson allegedly participated by using Daimler-issued credit cards and emailing receipts to her husband for inclusion in falsified expense reports.
By October 2025, she was allegedly using another employee’s corporate credit card for near-daily Uber Eats purchases.
Daimler alleges that an internal investigation began in November 2025 after the company identified suspicious expenses on the subordinate employee’s corporate credit card.
The investigation allegedly uncovered a broader pattern of unauthorized spending dating back more than five years.
Daimler seeks millions under Oregon racketeering law
The complaint includes eight civil claims, including fraud, breach of fiduciary duty, conversion, unjust enrichment, civil conspiracy and violations of Oregon’s Racketeer Influenced and Corrupt Organization law.
Daimler alleges the defendants engaged in thousands of incidents involving falsified expense reports and unauthorized purchases between July 2020 and December 2025.
The company is seeking approximately $6.59 million in treble damages under the racketeering claim, as well as attorneys’ fees and other relief.
The complaint also seeks to recover funds or property allegedly transferred to Krystal Watson through a claim under Oregon’s voidable-transactions statutes.
The allegations are contained in a civil complaint and have not been established in court. The Watsons have not been found liable.
Why it matters: The Daimler Truck North America lawsuit raises questions about internal financial controls at one of North America’s largest commercial truck manufacturers, including allegations that another manager approved improper expenses and that company credit cards were used to conceal personal spending.
