Texas State Sen. Carlos Uresti Indicted On Several Federal Criminal Charges

AUSTIN, TX — State Sen. Carlos Uresti—one of the most powerful Democrats in the Texas Legislature—was indicted Tuesday by a federal grand jury on 11 charges related to his involvement in the and Ponzi scheme, according to multiple reports.

The 11 counts of wrongdoing stem from Uresti's involvement in a now-defunct company called FourWinds Lotistics that sold sand used in hydraulic fracturing (commonly known as fracking) that is a process using horizontal drilling to coax minerals from beneath the earth's surface. According to reports, Uresti stood accused of misleading investors and misspending funds.

A grand jury indicted Uresti, 53, on one count of conspiracy to commit wire fraud; one count of conspiracy to commit money laundering; five 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.

As reported by the Texas Tribune, a separate indictment centered on a contract to provide medical services to a West Texas correctional facility. In that indictment, it's alleged that a colleague of Uresti’s, Vernon C. Farthing III, paid Uresti $10,000 per month as a marketing consultant and that half of the money was given to an unspecified Reeves County official in an effort to win over his vote in awarding the contract to Farthing’s company. Prosecutors argued that action culminated from a 10-year scheme to commit bribery and money laundering.

Uresti said he plans to plead not guilty to the charges.

"I am hard at work representing District 19 in the 85th Legislative Session," he said in a prepared statement. "The charges against me are groundless and I look forward to proving my innocence in a court of law at the appropriate time."

Federal agents raided Uresti’s law offices in February in connection to the fracking company case, leading to the firm's bankruptcy. Documents in the company’s bankruptcy proceedings list Uresti as owner of a 1 percent stake in FourWinds, according to the Tribine. Also, the company granted Uresti a $40,000 loan in June of 2014, and hired him to perform legal services, according to documents.

The Tribune noted at least four former FourWinds employees have now been indicted for their involvement in the company: chief executive Stanley Bates; Eric Nelson, the former marketing director; Shannon Smith, who held a 48 percent stake in the company; and Laura Jacobs, who worked as its comptroller. Gary Cain, a company consultant, was also indicted.

Uresti faces up to 20 years in federal prison if convicted of the fraud-related charge, another 10 years if convicted of the money laundering charge. If convicted of being an unregistered securities broker, Uresti could spend up to 20 years in federal prison, the Tribune reported. In the Reeves County case, Uresti could face up to five years in federal prison if convicted of conspiracy to commit bribery, and up to 20 years if convicted of the money laundering charge, the news site added.

Uresti is expected to appear before U.S. Magistrate Judge Henry Bemporad at 11 a.m. on Wednesday, May 17, in San Antonio. Uresti represents Senate District 19, one of the largest geographical senatorial seats in the Texas Senate that encompasses a third of the Texas-Mexico border.

>>> Read the full story at Texas Tribune

Photos of State Sen. Carlos Uresti via Texas Senate website