Danny Ray ButlerJohn Dee Carruth, CEO of the troubled $603 million Alabama One Credit Union, testified in federal court Friday that the credit union is paying criminal lawyers to represent him, former Member Business Lending Manager Tammy Ewing and perhaps other employees, according to legal sources who were in the courtroom.

Carruth’s testimony was part of what became a heated day in U.S. Bankruptcy Court for the Northern District of Alabama, as the credit union tried to convince U.S. Bankruptcy Court Judge Jennifer Hendickson to lift a stay and allow it to sell some of the property owned by Danny Ray Butler. The credit union maintained the property had been collateral for some of its many loans to Butler, according to court filings.

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