Senator facing variety of charges
Lawmaker says accusations are ‘groundless’
SAN ANTONIO — State Sen. Carlos Uresti, a San Antonio Democrat, was indicted Tuesday along with three other individuals in two separate cases for bribery, wire fraud, conspiracy and other charges in connection with his involvement in bankrupt frac-sand company FourWinds Logistics and a public corruption in Reeves County.
Uresti, who was indicted on 13 different charges that carry more than 200 years in prison if found guilty on all counts, denied any wrongdoing.
“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,” Uresti said in a statement.
Uresti, former FourWinds CEO Stanley Bates, 45, and consultant Gary L. Cain, 60, each face conspiracy and numerous other charges related to their work at FourWinds, a now-defunct oil field services company accused of defrauding investors, according to the indictment that was unsealed Tuesday afternoon.
Three other FourWinds officials already have pleaded guilty and are scheduled to be sentenced later this year.
The indictment accuses Uresti, Bates and Cain of developing an “investment Ponzi scheme to market hydraulic fracturing (fracking) sand for oil production,” according to a statement issued by the Department of Justice.
The San Antonio ExpressNews in August published an in-depth investigation into FourWinds and accusations of fraud against Uresti and Bates.
Cain didn’t return a call for comment after normal business hours, Bates couldn’t be located for comment and Bates’ defense attorney did not return a call for comment after normal business hours.
Uresti and Lubbock businessman Vernon C. Farthing III, 44, are accused in a separate indictment of conspiring with others from January 2006 through September 2016 to pay and accept bribes to secure a Reeves County Correctional Center medical services contract for Farthing’s company.
Farthing couldn’t immediately be reached for comment after normal business hours.
Bribery alleged
That indictment accuses Farthing of paying Uresti $10,000 a month as a “consultant.” Half of that amount allegedly went to then-Reeves County Judge Jimmy Galindo for his support and vote to award the contract to Farthing’s company, the indictment said. Galindo, who served as county judge from 1995 to 2006, is only identified as a co-conspirator.
The case is being prosecuted by DOJ’s public corruption task force. Federal prosecutors, led by U.S. Attorney Richard Durbin Jr., and FBI Special Agent in Charge Christopher Combs have given Uresti a chance to turn himself in. Uresti, Bates and Cain are scheduled to make an initial appearance Wednesday morning before U.S. Magistrate Judge Henry Bemporad in San Antonio.
“Sen. Uresti’s indictment comes as no surprise,” said Andrew Wheat, research director for Texans for Public Justice, a left-leaning watchdog group in Austin. “He gave an unsophisticated investor insane advice.”
Uresti advised a legal client of his to take $900,000 she received from a wrongful death case and invest it in a “risky startup” he worked for, the Express-News has previously reported.
“Why did he do that, if not to line his own pockets?” Wheat asked.
Uresti is the second Democratic state lawmaker to be indicted during this legislative session. In January, a state grand jury indicted state Rep. Dawnna Dukes of Austin on 13 felony counts of tampering with a government record and two misdemeanor counts of abuse and official capacity. If convicted, she faces up to 28 years in prison. She has said she is innocent of all charges.
Law offices raided
Uresti’s indictment comes more than three months after agents from the FBI and IRS raided his San Antonio law offices. At the time, Uresti said the search was part of a “broad investigation” of FourWinds. But law enforcement sources told the Express-News that another target of the raid was his consulting firm, Turning Point Strategies.
“We have a responsibility to the families we represent to be effective and anytime there are news stories about corruption and wiretaps floating around, it hurts your effectiveness,” said state Rep. Roland Gutierrez, a San Antonio Democrat. “It is unfortunate that Uresti has found himself in this position.”
Uresti served as a Marine and has been the cornerstone of a mini-political dynasty on San Antonio’s south side. He was re-elected to the Senate for a third time in November.
Prior to his election to the Senate in 2006, Uresti was the representative for Texas House District 118 for nine years. That seat is now occupied by his brother Tomas Uresti.