[Watchdogs] Jury recommends probation for ex-PEC boss, By Zeke MacCormack [San Antonio Express News]

[Milton Hawkins]

[Web site has good picture of Bennie at trial.  -  Milton]
http://www.mysanantonio.com/news/local_news/article/Jury-in-Fuelberg-trial-recommends-no-prison-time-879627.php
Jury recommends probation for ex-PEC boss By Zeke MacCormack
zeke at express-news.net
Published: 12:00 a.m., Tuesday, December 14, 2010

   -

   Bennie Fuelberg, shown at his trial in Fredericksburg last week, will
   have a sentencing hearing in January.
   Photo: Bob Owen/rowen at express-news.net

   Bennie Fuelberg, shown at his trial in Fredericksburg last week,...

 Page 1 of 1

FREDERICKSBURG — The jury that concluded Bennie Fuelberg stole up to
$100,000 from the Pedernales Electric
Co-op<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Pedernales+Electric+Co-op%22>didn't
recommend prison Monday for the utility's former longtime
general manager.

The panel sentenced him to a $10,000 fine and 10 years on each of three
charges — to be served concurrently — but probated the prison terms in favor
of community supervision.

State District Judge Dan
Mills<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Dan+Mills%22>indicated
he's inclined to assess jail time for the convictions for theft,
money laundering and misapplication of fiduciary property.

At the sentencing hearing in January, Mills can order up to 180 days in jail
as a condition of probation, and will also set the length of Fuelberg's
probation and determine whether to order restitution.

Prosecutor Eric
Nichols<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Eric+Nichols%22>plans
to ask for jail time for Fuelberg, who was charged last year along
with former PEC general counsel Walter
Demond<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Walter+Demond%22>,
who is awaiting trial.

The cases concern secret payments of PEC money to Fuelberg's brother,
lobbyist Curtis
Fuelberg<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Curtis+Fuelberg%22>,
and the son of a former PEC director, topping $700,000 combined.

“We don't believe Bennie was guilty, but we're certainly pleased with the
punishment the jury assessed,” said defense lawyer Chris
Gunter<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Chris+Gunter%22>
.

In the trial's punishment phase, the defense touted Fuelberg's character,
while the state focused on other alleged misdeeds.

Fuelberg was called “a great man” by Andy
Smith<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Andy+Smith%22>,
a Methodist <http://topics.mysanantonio.com/topics/Methodism> pastor who
once served at a Dripping Springs
church<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Dripping+Springs+church%22>the
Fuelbergs attended.

Longtime Fuelberg friend Michael
Cave<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Michael+Cave%22>testified,
“In my mind, Bennie is a model for all of us.”

Fuelberg, the PEC general manager from 1976-2008, loved the utility like a
second family, testified Jeanie Fuelberg, the defendant's spouse. She said
she has a terminal illness and relies on him to take her for treatment in
Houston <http://topics.mysanantonio.com/topics/Houston>.

But the jury learned from state witnesses that Fuelberg had improperly
funneled money from PEC
board<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22PEC+board%22>members
to political candidates through a trust.

It also heard about the discovery in 2008 that $565,000 in PEC funds had
languished in a noninterest-bearing bank account for two decades, costing
the utility nearly $1 million.

The cash was remnants of a failed venture by the utility to build a
coal-powered electric plant, witnesses said, from which Fuelberg paid
himself $111,600 for work on the project.

Beyond the $6.3 million Fuelberg received in PEC pay and benefits from
1998-2007, the utility reimbursed him for trips on which Fuelberg went
first-class and often brought his wife, said Todd
Lester<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22Todd+Lester%22>of
Navigant Consulting, whose 2008 report on the PEC laid bare
management problems.

Co-op member John
Watson<http://www.mysanantonio.com/?controllerName=search&action=search&channel=news%2Flocal_news&search=1&inlineLink=1&query=%22John+Watson%22>testified,
“The board and Mr. Fuelberg failed utterly in their fiduciary
duty to us.”

Luis Garcia, acting PEC general manager, said the abuses of the Fuelberg era
undermined members' trust in it.

“It's going to take many years to rebuild that trust,” Garcia said.


-- 
Milton Hawkins  milton.hawkins at gmail.com
P.O. Box 1502
Johnson City, Texas 78636-1502
830-868-9075
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