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Friday, September 13, 1996

PIF trial finished, judge's ruling awaited

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Staff Writer

PECOS, September 13, 1996 - Visiting Judge Paul McCollom on Thursday
took under advisement testimony in the three-day Reeves County vs. Pecos
River Livestock trial, which was held in the federal court building.

Judge Bob Parks recused himself from the 143rd District Court civil
suit, and Judge McCollom was appointed to preside.

Danny Reynolds, around whom the charges and counter-charges focused,
testified most of the afternoon Thursday.

He said the goat dairy and corporation that established it in late 1993
were his idea, and he enlisted stockholders in Carlsbad, N.M. and Pecos
- although he was unable to hold stock because he had previously
declared bankruptcy.

Reynolds said he drew up plans for the dairy and was in charge of
building construction at the site about 10 miles south of Pecos. He was
employed as consultant in February, 1994 and left that position on June
2, 1994, he said.

Kimberly Larsen was employed to take care of the goats, and her husband
Brad was to help with construction, Reynolds said.

When some of the stockholders visited the dairy on May 28, 1994, they
found goats in poor condition. Some had died and others were diseased.
After a confrontation, Reynolds said he told the group he was "going to
the house" and left.

He entered the hospital later that night with a lung disease and was
released June 2, he said. He said he later returned to the dairy to bolt
a set of stanchions to the concrete foundation in the milking barn.

While he was not asked about testimony that he had removed PRL tools
from the dairy property, Reynolds told this reporter that the tools he
took belonged to him personally.

Mike Morgan, attorney for some of the stockholders, questioned Reynolds
about two gasoline tickets dated the night he said he went into the
hospital and the day he was released.

He said that another ticket which was duplicated was his mistake.

Reynolds said that he acquired some of his 1,200 shares in the
corporation as reimbursement for expenses, while he paid $2 a share for
others. His brother, Randy Reynolds, was corporation secretary at the

"You know there was an agreement in the corporation minutes prohibiting
selling stock without first offering it to other stockholders?" Morgan

"Yes," Reynolds said.

"Did Randy sell his stock?"

"He gave it to one of my daughters. Kelvia. In 1994."

Randy also contributed a truck for part of Kelvia's stock.

His other daughter, Gabriela, sold goats from her 4-H project to the
corporation, Reynolds said. They were used as collateral for the
$131,000 loan obtained from Reeves County.

"We had to show $50,000 in assets or cash on the day of closure,"
Reynolds said. "My Dad (Dr. Elvia Reynolds) and brother (Randall
Reynolds) bought 70 or 80 goats off Gabriela to show as collateral."

Reynolds said that most of the time he drew out of his daughter's
college fund to buy goats for the corporation. Goat prices ranged from
$125 to $200 each, he said.

"Who appraised the goats?" asked Bob Scoggin, attorney for stockholder
Louis Lively.

"Rosemary (Wilke) and I set up a schedule and presented it to the
county," Reynolds said.

Other stockholders also purchased goats for the corporation, Reynolds
said. They were kept in his pens at Carlsbad, N.M. until early 1994,
when they were moved to the dairy barn.

Asked by John Stickels, attorney for Reeves County, why the dairy
project failed, Reynolds said one reason was the late date the loan was
obtained from the county.

"We needed money Sept. 1 and got it Oct. 1," he said.

"Number 2, we thought we would have the buildings bought and delivered
by Nov. 1 (1993). We got the first one Jan. 1 (1994)," he said.

And the corporation was unable to hire competent help to construct the
buildings, put in water lines, etc.

"It was just a job," he said. "We got started late. Probably it still
could have been salvaged, but we had personality conflicts. If someone
bought the operation, they could still sell cheese for $20 a pound."

Reynolds said he knew the dairy property was to be sold at a sheriff's
auction in early September, but he didn't attend.

Sheriff's deputy Victor Prieto said outside the courtroom that he sold
the property for $9,200 to Sandra Kimbel of Vidor. Only one other person
bid, he said.

Stockholders who confronted Prieto asked why he failed to notify them of
the sale, as required by law.

Prieto said he notified Randy Reynolds, the corporation secretary.

Stickels said today that the county was obligated to notify the
corporation, and by notifying Randy, Elvia and Danny Reynolds, they
satisfied that obligation. Also, the sale was posted in public places.

Rosemary Wilke of Carlsbad, N.M. testified that she took over care of
the goats after the Larsens left and worked daily at the dairy for a

On May 22, 1995, she went to Reeves County commissioners and asked them
for an extension of time to make the loan payment, but they refused. The
corporation never made any payments on the principal loan. However, some
of the goats were sold and the money paid into a trust account, she said.

Wilke said she tried hard to find a market for goat milk or curd, but
was unable to. The dairy had previously had a verbal contract with Bud
Larsen of Dripping Springs to provide curd for a French cheese, but were
unable to meet the Feb. 15, 1995 deadline because Reynolds had not
purchased a pasteurizer to prepare the curd, she said.

She said the dairy didn't work out "because everything was done
backwards. The buildings should have been put up before any goats were
ever purchased. We spent all the money on goats and feed and wages."

She blamed Danny Reynolds for that, because "he was the person running
the operation."

"You don't accept any of the blame for this venture going bad?" asked
Scott Johnson, attorney for Elvia and Danny Reynolds.

"No sir, not a lot," Wilke said.

The only revenue from the sale of goat milk was $5 from a woman who
wanted five gallons of milk for her baby goats, Wilke said.

Morgan and Scoggin testified that they have spent many hours preparing
for trial, and they should be compensated by the hour - not on a
contingency basis as proposed by county attorney Bill Weinacht in
earlier testimony.

"A one-third contingency fee is unreasonable in the extreme (for a loan
case)," Morgan said.

For the cross-complaint filed by Elvia and Danny Reynolds against his
clients, Morgan estimated his fee at $7,000. Scoggin said he spend about
two-thirds of his time on the Reynolds' allegations, including trial

The Reynolds seek $100,000 each in damages to their reputations. Reeves
County seeks to recover the $131,000 loan plus interest.

Judge McCollom gave attorneys until Oct. 4 to submit briefs in support
of their clients.

Assaults among Reeves County indictments

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Staff Writer

PECOS, September 13, 1996 - Reeves County grand jurors on Thursday
returned indictments against five suspects on varied charges.

Jose Ybarra Dominguez, 32, is charged with felon in possession of a
firearm, and his bail is $10,000. He allegedly possessed a .25 ACP
handgun on March 16, after being convicted of robbery in Pecos County
July 13, 1988.

The charge is enhanced by a prior conviction for aggravated robbery in
Pecos County July 26, 1982, the indictment alleges.

Mark Madrid Renteria, 18, is charged with injury to a child. He
allegedly struck a child under 14 years of age on Aug. 7. His bail is

Ricardo Pena, 17, is charged with aggravated assault on May 15. He
allegedly struck and beat Jesus Auturo Villalobos with his hands and
fists and stomped and kicked him. His bail is $15,000.

Jesus "Joe" Chavez, 25, is charged with possession of heroin on July 22.
His bail is $10,000.

Jose Luis Garcia, 32, was indicted for burglary of a building on April
10. Lydia Garcia owns the building which Garcia allegedly entered with
intent to commit theft.

Drug cases top federal indictments

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Staff Writer

PECOS, September 13, 1996 - Five of nine indictments returned Thursday
by the federal grand jury in Pecos involved marijuana smuggling.

Charged with conspiracy to import, importation, conspiracy to possess
and possession with intent to distribute marijuana are Eduardo
Solis-Ontiveros, 24, and Ruben Solis-Gomez, 24. They were arrested Sept.

Manuel Raul Sollano-Velasco is charged with importing and possessing
with intent to distribute marijuana on Sept. 8.

Hector Desidero Florez-Olvera is charged with importing and possessing
marijuana with intent to distribute on Aug. 26.

Stacy Becker, 34, Jose Medrano Jr., 24, and Clifton Nevins, 27, all of
Garden City, Kan., are charged with conspiracy to import and possess
with intent to distribute marijuana on Aug. 10.

Jesus Salvador Soto-Palma is charged with importing and possessing with
intent to distribute marijuana on Aug. 15.

Dolores Bernal-Garcia, Efrain Urias-Valenzuela, Jose Arturo
Maldonado-Gonzalez, Jose Gabriel Hinostrosa-Lopez and Jesus
Jordan-Villareal are charged with conspiracy to possess and possession
with intent to distribute marijuana on Aug. 21.

Two inmates who escaped from the Presidio County Jail on Aug. 21 were
indicted for escape. They are Gerardo Jacquez-Cabello, 33, and Juan M.
Zuniga-Urias, 28, both Mexican citizens.

Jacquez-Cabello was captured three days later at a ranch house south of

Rosa Vela and Raul Vela are charged with making false statements to
federal officers on Aug. 7. They allegedly told the officers that they
only had $50 in their possession, when in fact they had $134,877.

Arturo Blanco-Luna is charged with illegal re-entry on Aug. 4 after
being deported on Mar. 27, 1995.

Scam artist finally pays 1970's debt

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Staff Writer

PECOS, September 13, 1996 - Walter Holcombe was district attorney in
1980 when 35-year-old Dane Hudnall was convicted in 143rd District Court
of selling unregistered securities and placed on 10 years probation.

At least four district attorneys have since filed motions to revoke
Hudnall's probation when he failed to make $8,800 semi-annual
restitution payments.

Through the persistence of probation and law enforcement officers,
Hudnall was finally located and has now paid in full $176,000 due to 51
persons he allegedly swindled in oil and gas deals in the late 1970s.

Through the years, court officers have had telephone calls from agencies
around the world who also were interested in finding Hudnall.

Camilla Blum, chief adult probation officer for the 143rd District,
credits Louis Aten with locating Hudnall and obtaining restitution funds.

"He disappeared from the scene around 1985, and it took us 11 years to
get him located and brought in," Aten said today. "He surrendered on his

Aten said that he has recovered all the $158,000 outstanding
restitution, and he has found all but four of the original 51 victims.
Moneys will be distributed as soon as possible, he said.

"The case is unusual in that, in order to bring this case to
termination, I had to do things I don't normally do," Aten said. "I am
looking forward to going back to a normal routine."

Hudnall was one of numerous defendents present in court today for the
routine Friday docket before Judge Bob Parks.

Judge Parks reset until next Friday a motion to suppress evidence and
reveal confidential informant in the Evigael Juarez Navarette drug
possession trial. His attorney is Roddy Harrison, who was not present

Also reset to Oct. 4 was a pre-trial hearing for Roberto Alvarez-Duarte
on an aggravated assault indictment. Defense attorney Randall Reynolds
asked for more time to study a videotape taken by the prosecution.

Jose Manual Minjarez's drug possession arraignment was reset to Sept. 20
at the request of his attorney, Tony Chavez, who is in trial today in

Reset at the request of defense attorney Scott Johnson was a motion for
change of venue for Robert Camp Dean and a motion to revoke probation
for Raul Ismael Rodriguez.

Judge Parks appointed attorneys for several defendants and heard
numerous civil cases involving paternity and child support.

Showers from hurricane won't halt fiesta events

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From Staff and Wire Reports

PECOS, September 13, 1996 - Despite the prediction of continued rain
from Hurricane Fausto this weekend, plans are continuing as scheduled
for the 16th of September Fiestas.

The fiestas will be held at the Santa Rosa Church parking lot, located
in front of the church on East Fourth Street, beginning tonight.

"It always rains, but we continue with our fiestas, it doesn't stop the
public," said church secretary Hilda Vasquez.

Fausto, which has hovered off the coast of western Mexico for the past
two days, has been pushing rains up into Texas since Wednesday, and is
expected to continue to do so through the weekend. Flash flood watches
were out for the second straight day on Thursday for the Davis Mountains
south of Balmorhea, and a flood warning was issued overnight for Terrell
County, near Sanderson.

Pecos received just over half-an-inch of rain on Thursday, lifting the
total for the year to 9.41 inches. Over 8½ inches of that total has
fallen on the city since mid-June.

The threat of continued rain forced postponement of the `Best of the
Best' golf tournament scheduled this weekend at the Reeves County Golf
Course. Course manager Royce Cassell said the tournament has been
rescheduled for Sept. 28-29.

"The course is too wet, and I don't want to try and play be in-between
(showers), Cassell said Thursday. "We're going to lose a few (entries)
but we'll get a few more to take their place."

A total of 92 golfers were scheduled to participate in the two-day event.

While the golf tournament is moved back, the fiestas will still continue
despite the weather, according to Vasquez.

Some areas that have been set up for the public have covers for those
who wish to sit down, enjoy the music and eat.

Most booths are covered also, said Vasquez.

Saturday morning, the fiestas will kick off with a parade through
downtown Pecos. Line-up for the parade is 8 a.m.

Other events include the crowning of the queens, special folklorico
dances and Pecos' own, Esmi Talamantes and El Grupo Viento.

Talamantes and her talented group are set to perform tonight, beginning
at 8 p.m. at the Santa Rosa Hall.

Hurricane Fausto current track has it pointed towards the coast of
Mexico and from there the desert Southwest of the United States, though
the heaviest rains may be in the Arizona and New Mexico areas.

Fausto whipped thundering waves against tourist beaches at the tip of
the Baja California peninsula today, flooding streets, closing shops and
driving hundreds from their homes.

The storm, with 105 mph winds, was centered about 50 miles
west-southwest of here. Forecasters said the storm was moving north at 7
mph, and could swing across the peninsula toward the mainland.

Civil defense officials for Baja California Sur state said as many as
3,800 people might be evacuated near the tip of the peninsula. But Red
Cross workers said the departures so far were voluntary and affected
only several hundred people.

Most were taking the storm's onset in stride - even John and Fiona
Mellon of Miami, who had planned a 10th anniversary trip to the
Caribbean but shifted their plans to this resort due to concern over
Hurricane Hortense.

John Mellon, in shorts and a tank top, watched the palms bend and snap
over the Gulf of California as Fausto moved nearer.

``It's that time of year, isn't it?'' he said.

Hurricane-force winds extend outward up to 45 miles from the center,
while tropical storm force winds extended outward up to 115 miles, the
U.S. National Weather Service said.

A hurricane warning was in effect for the southern quarter of the
peninsula, south of the 25th parallel, and the Mexican government posted
a hurricane watch for the mainland from Guaymas south to El Dorado.

Forecasters warned that high waves could batter the Pacific side of the
peninsula while surges could push the sea as much as 10 feet above
normal on the other side.

They said up to 10 inches of rain were possible, raising the threat of
flash floods and mud slides.

Copyright 1996 Pecos Enterprise. All rights reserved. AP contributed to
this report.


Morsey Nichols

Morsey Nichols, 86, died Thursday, Sept. 12, 1996, in Carrollton.
Services will be at at 3 p.m. Saturday in the First Presbyterian Church
in Barstow with burial at Barstow Cemetery.

He was born Feb. 4, 1910 in Oklahoma, was a Presbyterian and a retired
water superintendent for Barstow.

Survivors include his wife, Marjorie Nichols of Carrollton; four
grandchildren and six great-grandchildren.

Phyllis Weaver

Phyllis Weaver, 52, died Thursday, Sept. 12 at her residence in Pecos.
Graveside services are scheduled for Sunday at 2 p.m. at Mount Evergreen
Cemetery with Derrell Evins officiating.

She was born Oct. 26, 1939 in Patrio, Ind., was a homemaker and a

Survivors include her husband, Don K. Weaver of Pecos; two sons, Gregory
Kuhlman of Oklahoma, Ira Barry Fields of Arkansas; one daughter, Vicki
Purvis of Borger, Tx.; four brothers, John F. and Gary Emery of Indiana,
James Emery of Florida and Larry Emery of Kentucky; two sisters, Patty
Wallick of Indiana, Joyce Bucholtz of Beaumont, Tx. and five


PECOS, September 13, 1996 - High Thursday 77, low last night 63.
Rainfall .52 inch. September rainfall 1.47 inches. Year-to-date 9.41
inches. Tonight. Mostly cloudy. A 30 percent chance of showers and
thunderstorms. Low in the lower 60s. Southeast wind 5-10 mph. Saturday,
a 50 percent chance of showers and thunderstorms, Otherwise mostly
cloudy. High in the lower 80s. Southeast wind 5-15 mph.
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Copyright 1996 by Pecos Enterprise
Division of Buckner News Alliance, Inc.
324 S. Cedar St., Pecos, TX 79772
Phone 915-445-5475, FAX 915-445-4321
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