TUSCALOOSA, Ala.—The CEO of Alabama One Credit Union testified here as part of a bankruptcy case, but the CU’s business lending manager declined to do so, with her attorney saying she would be pleading the fifth.
The Tuscaloosa News reported that John Dee Carruth, CEO of Alabama One CU, testified in the bankruptcy case of Danny Ray Butler, a local business currently serving a 36-month prison sentence for defrauding several lenders of more than $3 million. Butler has told several people he will be released in December, after serving less than 15 months of that sentence, the Tuscaloosa News said.
Carruth had been subpoenaed to appear as part of the proceedings, as had Tammy Ewing, business lending manager at AOCU. But attorney Harry Long, who is representing Butler, was quoted by the Tuscaloosa News as saying that Ewing would not appear in court despite the subpoena and would plead the Fifth Amendment.
Carruth told the court that Alabama One is paying for his attorney and that of Ewing as a result of the subpoenas.
The Tuscaloosa News reported that documents filed in Butler’s bankruptcy case show that he owes Alabama One more than $13 million, with the credit union holding mortgages on two properties.
The Butler case has been high profile in this community, with several people filing civil suits against Alabama One alleging that they lost money on deals that had been arranged by the credit union with Butler.
The Tuscaloosa News reported that one of those people, Jerry Griffin, who had run a dry cleaning business and who filed suit against the credit union after it foreclosed on his properties, as having less than positive things to say about Alabama One. When asked about Danny Butler, Griffin was quoted by the Tuscaloosa News as saying, “I wasn't dealing with Danny Butler, I was dealing with Tammy Ewing. I would trust Danny Butler before I would trust Alabama One and Tammy Ewing."
The court has set dates for later in April for other matters related to the bankruptcy filing.