Texas Separatist, 7 Followers Are Convicted of Federal Fraud

The leader of a Texas separatist group that sparked a weeklong standoff with police last year was convicted Tuesday on 26 counts of federal fraud and conspiracy in connection with millions of dollars in bogus checks.

In addition, seven followers of Republic of Texas leader Richard McLaren, including his wife, were convicted of fraud. Mark Anthony Hernandez was acquitted on two counts and ordered released.

After hearing testimony for a month, jurors deliberated 3 1/2 days before returning the verdicts.

McLaren could be sentenced to life in prison and fined $25.25 million. The others face lesser terms and fines when all are sentenced in June and July.

The Republicof Texas members allegedly ran up their credit card bills on such expenses as a Lear jet lease for McLaren and a $300 Neiman Marcus sweater for his wife, Evelyn. They tried paying the tabs with so-called “warrants,” which resembled bank checks, prosecutors said.

Prosecutors accused them of issuing $3.4 million in worthless warrants to eight companies, including American Express and Visa.

McLaren told jurors that the federal government improperly annexed Texas in 1845 and that its $80 billion in assets belong to the independent nation of Texas.

The group’s self-proclaimed “ambassador and consul general,” McLaren was convicted of organizing and managing the warrant scheme.

“I’m disappointed, and I’m sure he’s [McLaren] disappointed,” defense attorney Tom Mills said. “But I don’t think he was surprised.”

U.S. Atty. Paul Coggins said the verdict should serve as a warning: “Don’t mess with Texas.”

“This verdict sends a strong message that crooks cannot evade the laws through militia doublespeak. If you rip off your fellow citizens, you will be caught, prosecuted and convicted,” he said.

McLaren is already serving a 99-year state prison sentence for his role in a kidnapping last year that triggered the Republic of Texas standoff with 300 state troopers at the group’s ramshackle compound in the Davis Mountains in west Texas.

Mills said McLaren continues to work on Republic of Texas business while in prison.

“He’s very hopeful the Republic of Texas will be recognized as a legitimate entity,” he said.