(The Amarillo Globe-News posted the following story by Jim McBride on its website on August 14.)
AMARILLO, Texas — The BNSF Credit Union in Amarillo is suing its one-time president and CEO, claiming she abused her position by granting favorable loans to herself and other relatives that remain unpaid.
Before May 1995, Barbara Dunn was named president and chief executive officer. Her duties included oversight and approval of all loans.
According to a suit filed Monday in 108th District Court:
— Barbara Dunn made several unsecured loans to herself and her husband, and extended their due dates several times to avoid repaying principal or interest.
— Barbara Dunn extended more than $338,000 in loans to her family, and about $160,279 remains unpaid. The Dunns also are liable on a promissory note and deed of trust for a home improvement loan of $120,000, but payments are up to date.
n Barbara Dunn has two credit cards through BNSF totaling $18,000 that are in default. Gary Dunn also has breached a contract with BNSF by failing to pay one of the credit card accounts under terms of a credit agreement.
The suit claims Dunn abused her position to make personal loans to herself, her husband and other relatives, including a son and daughter-in-law. Further, the suit alleges that Barbara Dunn violated her fiduciary duty by obtaining funds to acquire property.
The Globe-News was unable to reach the Dunns, who live in New Mexico, for comment.
The plaintiffs claim the Dunns are attempting to sell their property and seek a court injunction barring them from receiving proceeds of the proposed sale. The suit claims BNSF will be unable to trace funds from the sale if the Dunns sell their property and take the sale proceeds to New Mexico.