The CEO of a teachers’ credit union in Pecos has pleaded guilty to conspiracy to commit bank fraud in connection with a loan that benefited a former state senator now in prison.
James T. Dutchover, the top officer at the Reeves County Teachers Federal Credit Union, faces up to five years in prison, three years of supervised release and a fine of up to $250,000 for defrauding the credit union, the San Antonio Express News reported. He also admitted to failing to file a tax return in 2015, a misdemeanor.
Prosecutors said the loan in question helped out former state Sen. Carlos Uresti, the San Antonio Democrat who is now serving 12 years in prison for his involvement with an oilfield services company that defrauded investors.
Dutchover, who also worked as Uresti’s West Texas regional director, arranged for the credit union to make the state senator a $10,000 loan, the newspaper reported. Because Uresti was not a member of the credit union, the loan was made in the name of one of Dutchover’s relatives, who signed the check over to a third-party payee as requested by Uresti.
John Salcido, chairman of the 1,700-member credit union, told the Express-News that Dutchover is still the CEO for now.
“I don’t know anything about a plea or anything like that,” he told the newspaper. “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.”
U.S. District Judge David Counts will preside over the sentencing hearing, which has not yet been scheduled.