Former Officer Sues Seven Points, Mayor Betts, and Chief Katsoulas

Former Seven Points police officer Justin Shaffer has filed a lawsuit against the City of Seven Points, Mayor Keith Betts, and Anthony Katsoulas in Henderson County District Court. The case, CV26-0126-173, was filed on March 10, 2026 in the 173rd Judicial District. Shaffer is represented by attorney William J. Dunleavy of Richardson, Texas.

Both Betts and Katsoulas have been personally served. Returns of service filed with the Henderson County District Clerk show Betts was served at a Seven Points address on March 30, 2026, and Katsoulas was served at a Gun Barrel City address on April 3, 2026.

What the Lawsuit Alleges

The 22-page petition lays out ten causes of action. The central claim is whistleblower retaliation under the Texas Whistleblower Act (Texas Government Code Chapter 554).

According to the petition, Shaffer was employed as a police officer by the City of Seven Points and completed his probationary period in late October 2025. The petition states that he made multiple good-faith reports of violations of law to several authorities, including the Henderson County Sheriff's Office, the Henderson County District Attorney, a DA investigator, and the Acting County Attorney.

The reports involved two areas. First, Shaffer reported that a city employee had been arrested for official oppression. Second, Shaffer reported that Mayor Betts was improperly placing police department employees on administrative leave using complaints that, according to the petition, "lacked any factual basis, including the lack of any policy or rule violation."

The petition names seven police department employees, both officers and dispatchers, who were placed on administrative leave.

Shaffer alleges he was terminated on December 15, 2025, and that the termination was carried out by Katsoulas at the direction of Betts.

Peace Officer Protections

The lawsuit also focuses on Texas Government Code Sections 614.022 and 614.023, which provide procedural protections for Texas peace officers facing complaints.

Under these statutes, disciplinary action cannot be taken against a peace officer unless a signed complaint is provided, the complaint is investigated, and there is evidence to support the allegation. The petition alleges that none of these steps were followed before Shaffer was terminated.

Shaffer alleges he filed a grievance three days after his termination and appealed to the Seven Points City Council approximately one month later. According to the petition, neither the grievance nor the appeal was ever heard.

Additional Claims

Beyond whistleblower retaliation and peace officer procedure violations, the petition raises several other claims.

Shaffer alleges his termination violated his right to free speech under the Texas Constitution, arguing that he was punished for citizen speech on matters of public concern.

The petition also alleges that Katsoulas was commissioned by the Texas Commission on Law Enforcement (TCOLE) but was holding himself out as a police officer for the City of Seven Points without proper authority.

The petition further alleges that Betts and Katsoulas created "fraudulent government documents" that falsely stated the reasons for Shaffer's termination and filed them with TCOLE.

Shaffer seeks reinstatement to his position with full benefits and seniority, declaratory relief, injunctive relief, a writ of mandamus to compel the city to hear his grievance, and attorney's fees. The petition requests a jury trial.

We Will Be Watching

This lawsuit is in its early stages. No answers or responses from the defendants have appeared in the court record as of this writing. We will continue to monitor this case through the Henderson County District Clerk and will report back to the public as developments occur.