[Watchdogs] Ex-PEC chief says hiring his brother didn't break any rules [San Antonio Express News]

[Andra Jacoby]

Bennie said below "“*I knew those invoices were for my brother's 
lobbying efforts,” Fuelberg confirmed. “My brother is not a lawyer.” 
Well, Curtis testified that he was NOT lobbying, just  advising. That's 
why he didn't register with the Texas Ethics Commission.*



On 12/9/2010 8:17 PM, Milton Hawkins wrote:
>
>
>   [Dated, but worth reading.  -  Milton]
>
>
>   Ex-PEC chief says hiring his brother didn't break any rules
>
>
>           By Zeke MacCormack
>           zeke at express-news.net <mailto:zeke at express-news.net>
>
>
>           Published: 12:00 a.m., Thursday, December 9, 2010
>
> FREDERICKSBURG — Former Pedernales Electric Co-op 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22Pedernales+Electric+Co-op%22> 
> General Manager Bennie Fuelberg testified Wednesday that he acted 
> within his authority in retaining his brother as a consultant for the 
> utility, but that he regretted shrouding the hiring in secrecy.
>
> He's charged with theft, money laundering and misapplication of 
> fiduciary property concerning $600,000 in PEC funds banked by Curtis 
> Fuelberg 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22Curtis+Fuelberg%22> 
> and $58,000 paid to Lampasas lawyer Bill Price.
>
> The defendant said bolstering the utility's legislative team was 
> critical as an electricity deregulation initiative advanced in the 
> mid-1990s, and that his brother was an established and trusted lobbyist.
>
> Besides wanting to avoid the appearance of nepotism, Fuelberg, 66, 
> said fear of harming relations with then-PEC board 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22PEC+board%22> 
> President Bud Burnett 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22Bud+Burnett%22>, 
> the utility's designated legislative liaison, led to a pact with PEC 
> general counsel Walter Demond 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22Walter+Demond%22> 
> in 1996.
>
> Fuelberg said he asked Demond to hire Curtis Fuelberg through his firm 
> and bill PEC for $60,000 of the annual salary.
>
> The defendant testified the hiring was within the broad powers vested 
> in him by PEC directors, but said, “It was poor judgment not to tell 
> the board.”
>
> On the stand this week, Curtis Fuelberg said he eventually surmised 
> PEC was underwriting his pay for the Austin firm, but never spoke of 
> the issue with his brother during his time on PEC's payroll between 
> 1996 and 2007.
>
> Defense exhibits included PEC resolutions empowering the manager to 
> hire employees, retain attorneys, execute instruments “of any nature,” 
> and make “any other provisions” deemed necessary.
>
> Fuelberg, who retired in 2008 after 32 years managing the Johnson 
> City-based utility, said, “They gave me a lot of authority and a lot 
> of discretion to run the co-op.”
>
> Prosecutors contend Fuelberg illegally conspired with Demond, who was 
> indicted last year on identical charges and is due to stand trial in 
> March.
>
> Under cross-examination by Texas Assistant Attorney General Eric 
> Nichols 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22Eric+Nichols%22>, 
> Fuelberg confirmed that a $30,000 PEC check — which he reported to the 
> board as a payment for “legal services” — was intended for Curtis 
> Fuelberg.
>
> “I knew those invoices were for my brother's lobbying efforts,” 
> Fuelberg confirmed. “My brother is not a lawyer.”
>
> Nichols also elicited testimony that no co-op record reflected that 
> any work was done for it by Curtis Fuelberg, who testified he gave his 
> brother regular oral reports on deregulation.
>
> Bennie Fuelberg said he wasn't aware Demond had routinely added 
> thousands of dollars to PEC's monthly legal bills, markups that 
> totaled $257,155 from 2004 to 2007.
>
> Although he suggested to Demond that the firm might want to hire Bill 
> Price, the son of PEC board member E.B. Price 
> <http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Fstate&search=1&inlineLink=1&query=%22E.B.+Price%22>, 
> Fuelberg said he didn't intend for PEC to pay any of Bill Price's 
> $2,000 monthly retainer.
>
> Bill Price, the first witness in the trial, testified he did little if 
> any work for Clark, Thomas & Winters and was unaware PEC may have 
> underwritten his fee.
>
> Previous trial testimony indicates Demond told co-workers at Clark, 
> Thomas that Fuelberg assured him PEC's board had approved the payments 
> to Curtis Fuelberg.
>
> But Fuelberg, a best man at Demond's wedding, disputed that.
>
> “I made it clear to Walter that we wanted to keep it from the board so 
> we did not offend” Burnett, he said.
>
> The trial, which began Nov. 29, is expected to conclude Friday.
>
>
>
> -- 
> Milton Hawkins milton.hawkins at gmail.com <mailto:milton.hawkins at gmail.com>
> P.O. Box 1502
> Johnson City, Texas 78636-1502
> 830-868-9075
>
>
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