FORT WORTH, Texas (October 16, 2024) – 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.
The bank conducted an inspection of McMullen’s cattle in April 2023. Only $556,000 was assessed as a fair market for the livestock.
By December 2023, when the bank seized the remaining livestock, only $222,000 in livestock remained.
Special Ranger McKinney presented the case to a Reeves County Grand Jury on Sept. 25, 2024, 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, 2024, McMullen surrendered to the Reeves County Sheriff’s Office in Pecos. He was subsequently arrested and released on a $25,000 bond.
McMullen owes more than $1 million to the bank.
The missing livestock have not yet been identified.
Special Ranger McKinney expressed his gratitude to the 143rd District Attorney’s Office and the Reeves County Sheriff’s Office for their assistance throughout the investigation.
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