State Senator Carlos Uresti, a Democrat representing parts of San Antonio, is facing two indictments that were handed up by a federal grand jury on Tuesday. The federal government claims Uresti was participating in a Ponzi scheme., a type of fraud in which investors are recruited for a nonexistent business by the payment of quick returns to early investors from money paid by later investors.
State Senator Carlos Uresti faces charges ranging from conspiracy to commit wire fraud and conspiracy to commit money laundering. He also faces charges of securities fraud, and conspiracy to commit bribery.
The Justice Department claims Uresti and other defendants created a Ponzi scheme to market hydraulic fracturing sand for oil production related to a company known as Four Winds. It also claims the defendants made false statements and representations to solicit investors. The second indictment alleges Uresti and others offered to pay and accept bribes in order to secure a medical services contract from the Reeves County Correctional Center.
Some charges carry sentences of up to 20 years in prison if convicted.
In February, Uresti’s downtown San Antonio law office was raided by the FBI. Uresti represents district 19 in the Texas Senate which encompasses south San Antonio and parts of Southwest Texas.
Several calls by TPR to Uresti and his senate office went unreturned. Uresti is expected to appear in front of a federal magistrate Wednesday morning at the federal courthouse in San Antonio.