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Monday, December 13, 2010

One estimate of improper expenditures by Fuelberg: $7,509,111


Update:
The jury in the money laundering and theft conviction of Bennie Fuelberg has sentenced Fuelberg to probation and a $30,000 fine. The sentencing was announced late Monday by State District Judge Dan Mills in Fredericksburg. Judge Mills will determine the terms of probation next month, which may include jail time and $84,000 in restitution. Read the details here from Statesman reporter Patrick George.

Bennie Fuelberg/Statesman
Note: We're expecting that punishment will be ordered this week, possibly today, in the conviction last week of former PEC General Manager Bennie Fuelberg. The defense is asking for probation. It may involve sentencing plus a fine and/or restitution. There's no way of telling, although there certainly has been a lot speculation. On the restitution end, long time PEC watchdog and researcher Milton Hawkins, a retired English professor and Johnson City area resident, has circulated what he believes are many of the improper expenditures approved by Fuelberg and for which restitution to the PEC should be considered, totaling $7.5 million.

Send your comments and news tips to
roundup.editor@gmail.com, to Mr. Hawkins at milton.hawkins@gmail.com or click on the "comments" button at the bottom of the story

From Milton Hawkins:

Here's the third draft, which includes source information and identifies me as an owner-member.

I should think that anyone with this document would have a few questions (if he didn't already) to ask Luis Garcia and others if they are not forthcoming with respect to the damage Bennie did to the cooperative and its members.

Luis, as former general counsel and now acting general manager, knows the details of payments of attorneys' fees and the like, and he knows the particulars of the settlement agreements in the Worrall case and the CT&W matter. And I suppose the State will call Todd Lester to give details from the Navigant Report.

You'll know, of course, that this compilation leaves out the wasteful Texland venture itself, as well as Envision, Texas Skies, and the purchase of the Kimble Cooperative, plus lavish travel arrangements, retirement benefits, and all the rest of it.

(I left out our expenses in recovering the money in the Texland account. You'll recall that we spent a small fortune on Cox, Smith, and Matthews' ill-considered effort to get back interest as well as principal. I believe we spent almost as much as we recovered when all expenses are tabulated.)

$122,775 -- Amount taken from Texland account (Navigant Report)
$500,00 -- Amount of interest lost to Texland account in Cattleman's Bank (PEC court filing)
$19,044 -- Amount known to have been disbursed from Political Contributions Account (Navigant, pg 388)
$95,825 -- Amount of non-standard pay arrangement for Dianna Kerrigan (Navigant Report, pg 326)
$3,653 -- Amount Fuelberg spent on Godiva Chocolates (2003-07 Navigant Report, pg 272)
$7,031 -- Amount Fuelberg spent on Texas Hill Country Pecans (2003 Navigant, pg 272)
$22,384 -- Amount of questionable expenditures (2000-07 Navigant, pg 271)
$450,816 -- Amount of non-standard pay arrangements for 19 employees (2002-07 Navigant, pg 328)
$735,832 -- Amount of non-standard pay arrangement for 5 managers (2003-06 Navigant pg 326
$318,000 -- Amount of non-standard pay arrangement for Joyce Greenslade (2003-08 Navigant pg. 323-25)
$249,000 -- Amount of non-standard pay arrangement for Sandra Cunningham (2006-08 Navigant pg 323)
$800,000 -- Amount PEC owner-members paid plantiff's attorneys in Worrall class-action settlement
$1,442,814 -- Amount paid to Navigant for investigation that disclosed the diversion of funds (PEC document)
$150,000 -- Amount paid to KPMG for its "shadowing" the Navigant investigation (estimated)
$250,000 -- Amount paid to Cox, Smith & Matthews for serving as liaison in Navigant investigation (estimated)
$1,366,667 -- Amount paid to Jimmy Williamson to pursue settlement agreement with CT&W (estimated)
$703,144 -- Total fraudulent amount PEC paid to CT&W (State filing in current trial)
$272,125 -- Amount paid to outside legal counsel in relation to criminal investigation and grand jury proceedings (PEC document)

$7,509,111 -- Total estimated expenditures resulting from Fuelberg's acts

3 comments:

Les said...

car & horse thieves get harsher punishments than he got for 3 decades of theft from the public...

Anonymous said...

How about all the money spent printing up ads and postcards for WildBlue satellite internet service when WildBlue was not able to take on any new customers (several years before PEC finally sold WildBlue)

Quatrune Brain: a mind map that includes the arts said...

Remarkable !!! Injustice for the taxpayers and the PEC "citizen owners "

Thanks for this accounting of the misuse of PEC Funds. Think there needs to be a citizen out-cry about the discrepancy between the $30,000 verdict, with probation, and the $7 million actual costs documented here .........

As a PEC Owner-Customer, I want restitution, back to the PEC accounts, of whatever is left in Feulberg's financial holdings.!!!

Roberta Shoemaker-Beal