Daimler Truck Sues Former Oregon Supervisor and Wife for $6.5M in Embezzlement Scheme

Key points

• Daimler Truck North America filed a lawsuit last week against Terry Watson, a former high-ranking supervisor in Portland, and his wife, Krystal Watson.
• The complaint alleges the couple misappropriated over $3.8 million in company funds over a five-year period, starting around 2020.
• Alleged misuse of funds included payments for vacations to Europe, Las Vegas, and Legoland, as well as spas, sports clubs, and child care.
• The suit claims Krystal Watson used another employee’s corporate card for near-daily Uber Eats purchases, while Terry Watson falsified billing records for home construction and landscaping.
• Daimler Truck discovered the scheme in November 2025, fired Watson, and is now seeking $6.5 million in damages and legal fees.
• The lawsuit names two local vendors as co-defendants for billing Daimler directly for work performed at the Watsons' Hillsboro home.

Background

This case occurs as Daimler Truck North America undergoes significant operational changes in Portland. The company recently opened a new $40 million engineering facility on Swan Island to consolidate research and development for electric and hydrogen vehicles. Simultaneously, Daimler is winding down its historical truck assembly lines in the region, shifting heavy manufacturing to North and South Carolina. The embezzlement allegations arise during this transition, highlighting risks associated with consolidating operations and managing large-scale corporate assets.

How outlets are covering it

KPTV and Hoodline report consistent details regarding the $3.8 million in alleged losses and the specific personal expenses, such as vacations and food delivery. Hoodline provides additional context, noting that Daimler is seeking $6.6 million in total damages, including legal fees, and highlights that the scheme was uncovered after Krystal Watson sent her husband emails itemizing personal charges. Trucks, Parts, Service confirms the civil nature of the suit but offers fewer specific details on the spending categories. All sources agree that no criminal charges have been filed in Oregon, and the Watsons have not publicly commented on the allegations.

Why it matters

The case underscores the financial risks companies face during major operational transitions, such as facility consolidations and shifts in manufacturing focus. It also illustrates how internal controls can fail when employees exploit access to corporate assets over extended periods. For Daimler, recovering the alleged funds is critical as it invests heavily in new engineering infrastructure and emerging propulsion technologies in the Pacific Northwest.

What to watch

The civil lawsuit is pending, and Daimler Truck is pursuing the matter in court. It remains unclear whether the company will report the allegations to law enforcement for criminal prosecution. The Watsons have not yet responded to the suit, and no criminal charges have been filed in Oregon as of the latest reports.