SAN ANTONIO – State Sen. Carlos Uresti (TX-19) has been indicted by a federal grand jury.
The senator is facing multiple charges including wire fraud, securities fraud, engaging in monetary transactions with property derived from specified unlawful activity; and, one count of being an unregistered securities broker.
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Uresti was first elected in 1997 as a Texas Representative and elected to the Senate in 2006.
The Democrat and San Antonio native attended law school at St. Mary's and opened his own legal office in downtown in the early 1990s.
The U.S. Attorney’s Office Western District of Texas issued the following statement detailing the alleged crimes.
In San Antonio today, a federal grand jury returned two separate indictments against District 19 Texas State Senator Carlos I. Uresti announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. Three other individuals were also charged by the grand jury.
FOUR WINDS INDICTMENT
This indictment charges Uresti, age 53, of San Antonio, Four Winds Chief Executive Officer Stanley P. Bates, age 45, of San Antonio, and Four Winds consultant Gary L. Cain, age 60, of San Antonio, with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The indictment also charges Uresti with five substantive counts of wire fraud, two counts of securities fraud; one count of engaging in monetary transactions with property derived from specified unlawful activity; and, one count of being an unregistered securities broker. The indictment also charges Bates with one count of wire fraud; two counts of securities fraud; and, three counts of engaging in monetary transactions with property derived from specified unlawful activity. The indictment also charges Cain with seven counts of engaging in monetary transactions with property derived from specified unlawful activity. The indictment alleges that the defendants developed an investment Ponzi scheme to market hydraulic fracturing (fracking) sand for oil production. It further alleges that the defendants made false statements and representations to solicit investors in Four Winds. The defendants allegedly used funds from more recent investors to pay earlier investors and for personal expenses. For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker.
REEVES COUNTY INDICTMENT
This indictment charges Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering. The indictment alleges that from January 2005 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company. The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company. (more) Uresti indictments release May 16, 2017 Page 2 Upon conviction of the charges contained in this indictment, the defendants face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering.
In a statement to KSAT 12, Uresti said: "I am hard at work representing District 19 in the 85th Legislative Session. The charges against me are groundless and I look forward to proving my innocence in a court of law at the appropriate time. I will enter a plea of Not Guilty and immediately return to work representing District 19."
It is anticipated that initial appearances for Uresti, Bates and Cain will be Wednesday at 11 a.m. before United States Magistrate Judge Henry Bemporad in San Antonio. Farthing’s initial appearance is expected to occur at 11 a.m.Thursday in front of Judge Bemporad.
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