Bennie Fuelberg accused of stealing money

Updated: Monday, 29 Nov 2010, 6:21 PM CST

Published : Monday, 29 Nov 2010, 11:52 AM CST

http://www.kxan.com/dpp/news/crime/jury-selected-in-pec-trial

FREDERICKSBURG, Texas (KXAN) - A jury of nine women and three men will decide the fate of former Pedernales Electric Cooperative general manager Bennie Fuelberg, 66, who is charged with theft and money laundering.

Fuelberg was indicted in June 2009 on felony theft and money laundering charges after a 5-month grand jury investigation. His attorney questioned potential jurors into the afternoon in a Fredericksburg courtroom.

Fuelberg, who ran the co-op for more than 30 years, is charge with misapplication of fiduciary duty in excess of $200,000, theft of property in excess of $200,000, and money laundering between $100,000 and $200,000.

District Judge Dan Mills explained to potential jurors Monday morning that the first two charges Fuelberg faces are first-degree felonies that carry a penalty of up to 99 years in prison if  he is convicted and the last charge is a second-degree felony that carries up to 20 years.

Fuelberg has pleaded not guilty. His wife and daughter were with him in court Monday.

The co-op's former outside counsel, Walter Desmond, was also indicted on the same charges.

Desmond is being tried separately.  He has also pleaded not guilty.

Both men are accused of arranging for thousands of dollars of co-op money to be paid to relatives of PEC executives between the mid-1990s and 2007. Indictements shows more than $200,000 went to Curtis Fuelberg, Bennie Fuelberg's brother and William Price, the son of former PEC Director E.B. Price.

The Texas Attorney General's Office is prosecuting the case after a Hill Country district attorney stepped aside. Attorney General Greg Abbott is present in court and overseeing juror selection.

"This is an issue that involves thousands of people who pay a lot of money  to a co-op for an essential service and they deserve to have this service provided to them without being ripped off, without fudiciary duites being breached, without backroom dealings being made, to basically steal money from them," explained Abbott.  "We are here today to send a message to people across the State of Texas who hold a fudiciary duty that the State of Texas and the attorney general will hold them accountable whenever they breach that fudiciary duty."

Fuelberg is being represented by Austin attorney Chris Gunter.

In June, Judge Mills approved the defense's request for a change of venue from Blanco County where PEC is headquartered.

The defense felt that Fuelberg would get a fair trail in Gillespie County because it is almost completely out of PEC's coverage area.

The trial is expected to last until Dec. 6.