Texas Senator Carlos Uresti Found Guilty of Securities Fraud
Texas state senator Carlos Uresti has been convicted of securities fraud for his alleged role in a fracking-related Ponzi scheme.
Texas Senator Carlos Uresti Caught in Ponzi Scheme
Prosecutors in the case allege that between February 2014 and December 2015, Uresti and two conspirators came up a plan to buy and sell sand used in fracking operations through a company called FourWinds Logistics.
According to case documents, as more investors were recruited for the scheme, Uresti and his partners used newer investors’ money to pay back earlier investors. The money also was used for personal expenses including travel, luxury cars, drugs, and prostitutes.
When questioned by investors about the scheme, Uresti lied and told them he had invested his own money in FourWinds. He also omitted the fact that he received a commission and percentage of the profits from all investments in the company.
Guilty of Securities Fraud and Conspiracy
Uresti, who is also a San Antonio attorney, was found guilty of wire fraud, conspiracy to commit money laundering, securities fraud, engaging in monetary transactions with property derived from unlawful activity, and failing to register as a securities broker.
Gary L. Cain, Uresti’s business partner in FourWinds, also was convicted on all charges, totaling eight counts of conspiracy to commit wire fraud and engaging in monetary transactions with property derived from unlawful activity.
The chief executive officer of FourWinds, Stanley P. Bates, who was deeply involved in the scheme, also entered a guilty plea to eight charges that included securities fraud and money laundering.
Senator Carlos Uresti and Business Partner Facing Prison Time
Both men face 20 years in prison for each of the fraud charges and 10 years for money laundering. Uresti also faces up to 20 years for being an unregistered securities broker. Sentencing for Uresti and Cain is scheduled for June 25 of this year.
According to immediate reports, the state senator has no imminent plans to step down from his seat.
Are You a Victim of Securities Fraud?
If you believe you are a victim of securities fraud or have lost money as a result of securities fraud, contact a qualified securities fraud attorney today.
Call a Securities Fraud Attorney Today
If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.