A 43-year-old Pecos County man who defaulted on a $1.5 million loan has been indicted on first-degree felony charges for hindering secured creditors. The indictment follows an investigation by Texas & Southwestern Cattle Raisers Association Special Ranger Clay McKinney.
The investigation began after a law firm representing a regional bank contacted Texas & Southwestern Cattle Raisers Association. The firm reported that Tate McMullen, doing business as Compana Cattle Company, had entered into a security agreement with the bank in November 2017 for a loan of $1.5 million. McMullen put livestock as collateral for the loan. After defaulting on the loan, the bank sent numerous letters to McMullen asking for the surrender of the collateral or payment of the outstanding loan balance, but McMullen did not respond to these requests.
McKinney presented the case to a Reeves County grand jury on Sept. 25, resulting in an indictment of McMullen for hindering a secured creditor, a charge protecting lenders when collateral is intentionally concealed, destroyed or removed.
On Oct. 8, McMullen surrendered to the Reeves County Sheriff ’s Office in Pecos. He was subsequently arrested and released on a $25,000 bond.
