[Watchdogs] Former Pedernales boss won't appeal sentence

[Andra Jacoby]

  Former Pedernales boss won't appeal sentence


By Patrick George 
<http://www.statesman.com/news/former-pedernales-boss-wont-appeal-sentence-1246648.html?service=popup&authorContact=1246648&authorContactField=0> 


AMERICAN-STATESMAN STAF

Published: 8:55 p.m. Thursday, Feb. 10, 2011

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SAN MARCOS --- Bennie Fuelberg, the former head of the Pedernales 
Electric Cooperative sentenced to jail Monday, will not appeal his 
sentence, his attorney said Thursday.

State District Judge Dan Mills ordered Fuelberg to serve a five-year 
probated sentence that includes 300 days in the Blanco County Jail , 
1,000 hours of community service and payment of $126,000 in restitution 
to the co-op's former law firm, Clark, Thomas & Winters .

However, Mills gave Fuelberg the option of reducing his jail time by 
accepting responsibility for his crime --- including waiving his right 
to appeal --- and testifying against attorney Walter Demond. Demond, a 
former partner at Clark Thomas, faces trial later this year on the same 
felony theft, money laundering and misapplication of fiduciary property 
charges as Fuelberg.

"We intend to avail ourselves of the judge's invitation to work to 
reduce the sentence," said Chris Gunter, Fuelberg's attorney.

Mills stipulated that Fuelberg serve 30 consecutive days in jail twice a 
year for five years, from June to July and November to December. Mills 
said Monday that this arrangement will allow Fuelberg to care for his 
wife, who testified at his trial that she is terminally ill.

Fuelberg, who ran the nation's largest member-owned electric utility for 
more than 30 years, was prosecuted for arranging for co-op money to be 
sent to the law firm and funneled to his brother, Curtis Fuelberg, and 
Bill Price, the son of a former co-op board member.

Initially charged with first-degree felonies, Fuelberg could have faced 
as much as 99 years in prison. But in December, a Fredericksburg jury 
found him guilty of third-degree versions of those charges, which carry 
lesser penalties, and fined him $30,000 and gave him probation.

At Monday's sentencing hearing, Gunter argued, and Mills agreed, that 
the third-degree charges meant Fuelberg was convicted only for his role 
in the payments to Price, not to Curtis Fuelberg.

The restitution Mills ordered goes to Demond's former law firm instead 
of the co-op, which had sought $8.8 million from Fuelberg for costs 
related to his actions as general manager. Clark Thomas earlier reached 
a $4.1 million settlement with Pedernales, which Gunter argued covered 
the damages related to Price.

Chuck MacDonald , a spokesman for Clark Thomas, said the firm's leaders 
took the restitution order as a sign that the firm acted appropriately 
when it discovered possible wrongdoing.

"It was appropriate recognition from the court that (the firm) had taken 
appropriate actions, made restitution and brought this to the state's 
attention in the first place," he said.

Pedernales board President Larry Landaker indicated that the co-op may 
examine their avenues for a civil suit against Fuelberg.

That may be a tall order for the co-op. A member-led lawsuit that 
started in 2007 and was the catalyst for governance reforms and 
replacement of its entire top leadership, released Fuelberg and several 
former board members and officials from further claims.

pgeorge at statesman.com;

512-392-8750



http://www.statesman.com/news/former-pedernales-boss-wont-appeal-sentence-1246648.html
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