Friday, February 11, 2011

Former Pedernales boss won't appeal sentence Bennie Fuelberg can reduce jail time by testifying against former outside lawyer, judge says. Chris Gunter Attorney helping with reduced sentence for Fuelberg. Jay Janner/AMERICAN-STATESMAN ENLARGE PHOTOBennie Fuelberg would serve 60 days a year. LATEST LOCAL NEWS » Central Texas Digest: Search expands for missing New Braunfels toddler; Austin blood donors can get free necklaces 10:56 p.m. Thursday New mobile food rules ensnare man who pushed for changes 9:42 p.m. Thursday Escamilla seeking records from council members in inquiry 9:35 p.m. Thursday Tolls to be waived over weekend on Texas 130, Texas 45 Southeast, part of Texas 45 North 9:40 p.m. Thursday City Council action: City sells land to Stubb's9:27 p.m. Thursday Latest local news and last 7 days of headlines MORE ON STATESMAN.COM » Women's basketball roundup: S. Carolina throws Kentucky for a spill Men's roundup: St. John's clobbers Connecticut Jerry Sloan abruptly retires after 1,127 victories Vipers take down Toros IBM to honor three from UT for input on Watson supercomputer project Central Texas Digest: Search expands for missing New Braunfels toddler; Austin blood donors can get free necklaces Texas opens season with win over Louisville More By Patrick George AMERICAN-STATESMAN STAF Published: 8:55 p.m. Thursday, Feb. 10, 2011



 — 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@statesman.com;
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