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Texas State Sen. Carlos Uresti, San Antonio Democrat, indicted on corruption charges
May 17, 2017: Texas State Sen. Carlos Uresti, San Antonio Democrat, was indicted yesterday, Tuesday, May 16, 2017, in two federal cases, three months after Federal Bureau of Investigation agents raided his downtown San Antonio law office. A federal grand jury returned an indictment on May 16, connected to the Four Winds frac sand bankruptcy scandal and a separate indictment in a bribery scandal for a prison contract in Reeves County.
The first indictment charges Uresti, Four Winds Logistics chief executive officer Stanley Bates and Four Winds consultant Gary Cain with creating a Ponzi scheme to market frac sand for oil and gas production. Federal prosecutors allege that the three lied to investors and used their money to pay earlier investors and line their own pockets. The allegations were revealed after Four Winds filed for Chapter 11 bankruptcy in San Antonio in August, 2015.
In the second indictment, Uresti and 44-year-old medical services provider Vernon Farthing III, of Lubbock, were charged in connection to a bribery investigation at the Reeves County Correctional Center in West Texas. Federal prosecutors allege that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of the money went to a Reeves County official for his support and vote to award a contract for medical services at the jail to Farthing’s company.
The indictments were returned three months after a Feb. 16, 2017, raid led by FBI agents at Uresti's law office on McCullough Avenue in downtown San Antonio. Uresti, Bates and Cain are scheduled to be arraigned at 11 a.m. today, Wednesday, May 17, 2017, before U.S. Magistrate Judge Henry Bemporad in San Antonio, and Farthing is expected to make his initial appearance before Bemporad at 11 a.m. tomorrow, Thursday, May 18, 2017. Uresti represents Senate District 19.
Attribution: The San Antonio Business Journal, Wikipedia