Defense: Uresti ignorant of partners’ wrongdoing
Senator from San Antonio faces felony charge in U.S. court.
The criminal case against Democratic state Sen. Carlos Uresti, Assistant U.S. Attorney Joe Black- well told jurors Monday, was “birthed in loss” but ended with both “loss and profit.”
The prosecutor said the l osses were suffered by Denise Cantu, whose son and daughter were killed in a 2010 wreck that would ultimately, with Uresti’s legal representation, win her a substantial wrongful death settlement.
And the profit, Blackwell said, also came at her expen s e, when she lost the bulk of $900,000 she invested at Uresti’s recommendation with FourWinds Logistics, a now-defunct com- pany where Uresti worked as general counsel and owned 1 percent of shares.
The largest question in the federal felony case against the San Antonio senator is whether he was aware of the Ponzi scheme that effectively robbed Cantu and a slate of other large-stake investors. Blackwell alleged in opening statements that Uresti used his reputation and prominent position to lend credibility to the fraudulent scheme. Defense attorneys claim Uresti didn’t know about FourWinds’ shady dealings.
Three FourWinds employees, including Chief Operating Officer Shannon Smith, made plea deals in 2016 and are expected to testify for the government starting Tues- day. And FourWinds CEO Stanley Bates, a co-defen- dant with Uresti, unexpectedly pleaded guilty to eight felony charges this month.
Lawyers on both sides argued for about four hours Monday to a jury warned several times by U.S. District Judge David Ezra to disregard widespread media reports on the case. The courtroom was packed with Uresti’s family, so full in the morning that would-be spectators — includ ing Uresti’s father – were at afirst turned away.
Bates was in dire financial straits when he launched FourWinds, which purported to sell sand to fracking companies. Prosecutors said Bates and his associates falsified bank statements, in one instance claiming there was nearly $19 million in an account of under $100,000, to assuage skeptical investors.
Still, prosecutors argued, potential investors remained wary of the relatively unknown company. Enter Uresti, a veteran state lawmaker, reputable local lawyer and member of a prominent San Antonio family.
“Uresti had something Stan Bates didn’t — a well-known name,” Blackwell said. “He was someone that could bring credibility to FourWinds.”