Marco Antonio Delgado also is accused of diverting millions of dollars from a utility to his own bank account so he could live a lavish lifestyle.
U.S. District Judge David Briones ruled Thursday on Delgado's competency after the lawyer underwent neurological tests following a head injury he suffered while in jail.
The money laundering trial is set for October. His attorney says Delgado is innocent.
The El Paso Times reports federal prosecutors say he has until next month to agree to a plea deal. Conviction could get him up to 20 years in prison.
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