SAN ANTONIO–The CEO of a credit union here has entered a guilty plea in a case related to a former elected official, even as the CU's chairman said he was unaware of the plea.
James “Jimmy” T. Dutchover, who is CEO of Reeves County Teachers FCU in Pecos, Texas, pleaded guilty to one felony count of conspiracy to commit bank fraud in connection with a loan made for the benefit of Sen. Carlos Uresti, a longtime San Antonio Democrat who is now serving a 12-year prison term for his involvement in a now-defunct San Antonio oil field services company that defrauded investors, according to the San Antonio Express-News.
In addition to being CEO of the credit union, Dutchover also served as Uresti’s West Texas regional director.
According to court documents, Dutchover conspired with an elected official he worked for to arrange a $10,000 loan from the credit union for the official’s benefit. The loan was made in the name of a relative of Dutchover because the official was not a credit union member, the Express-News reported.
After the straw loan was funded, Dutchover’s relative was directed by Uresti to write a $10,000 check to a “third party payee,” who was not identified in documents.
Up to Five Years in Prison
Dutchover faces up to five years in prison, up to three years of supervised release and a fine of up to $250,000 for admitting to defrauding the credit union — a felony, according to the report. He also pleaded guilty to a misdemeanor count of failing to file a tax return in 2015, when he received gross income of about $107,150 from the credit union, $77,3500 from his business, and almost $9,300 from the state.
Prosecutors will recommend that the sentences be served concurrently. A sentencing hearing has not yet been scheduled, though it will be held before U.S. District Judge David Counts, the Express News reported.
Chairman's Response
John Salcido, the credit union’s chairman, confirmed to the Express-News that Dutchover remains CEO, saying he was aware Dutchover had been indicted but was unaware of the guilty plea.
“I don’t know anything about a plea or anything like that,” Salcido told the Express-News. “We haven’t taken any kind of action or anything like that till we hear from him or we find out exactly what has happened.”
Prior to Dutchover’s appointment, his father David Ramos Dutchover Jr. served in the post for about 33 years, the report noted.
The $13.7-million Reeves County Teachers FCU has approximately 1,700 members.