Bastrop was founded by the Baron de Bastrop (ne Felipe Enrique Neri), a Dutch businessman accused as an embezzler. He had fled to the then Spanish colony of Louisiana to escape prosecution, and became involved in various land deals. In New Spain, he falsely claimed to be a nobleman. He received a large grant of land, provided that he could settle 450 families on it over the next several years. However, he was unable to do this, and so lost the grant. Afterwards, he moved to Texas, where he claimed to oppose the sale of Louisiana to the United States and became a minor government official. He proved instrumental in Moses Austin's plan (and later, that of his son, Stephen F. Austin) to bring American colonists to what was then northern Mexico.