WASHINGTON (AP) _ The former chairman of a failed Texas savings and loan association has been charged with embezzling more than $4 million after purchasing a controlling interest in the thrift in 1985, according to an indictment unsealed Tuesday.

Alan Ross Rothery, a California attorney and former chairman of Trinity Valley Savings and Loan Association of Cleveland, Texas, was accused of bank fraud, embezzlement, self-dealing and giving false information to a federal bank examiner.

Each count carries a five-year sentence and a possible $250,000 fine.

The indictment, returned Aug. 2 by a federal grand jury in Beaumont, Texas, was unsealed in court Tuesday.

It accuses Rothery and two California businessman, Errol Coughlan, of Malibu, and John Coughlan Jr., of Long Beach, of participating in a scheme to fraudulently divert loan proceeds.

The brothers were accused of aiding and abetting the fraudulent loan diversion. They also were charged with making false statements on loan applications and participating in a separate bank-fraud scheme to divert funds to their own use.

On July 24, the Coughlans were named in a 17-count fraud indictment returned in Los Angeles that accuses them of defrauding a number of financial institutions.

The Texas thrift was taken over by federal regulators in March 1989 and sold Oct. 6, 1989, to Hibernia National Bank in Texas, regulators said. The loss to the government for insured deposits and speculative loans is expected to reach $33 million, the Justice Department said.

Timothy Ryan, director of the Office of Thrift Supervision, said Trinity Valley is on the agency's list of top 100 S&Ls that were referred to the Justice Department for criminal prosecutions.

Attorney General Dick Thornburgh said in a statement that ''the alleged scheme whereby Rothery acquired ownership of Trinity Valley and manipulated the institution's loan proceeds to satisfy his own greed is a textbook example of criminal fraud in our nation's thrift industry.''