A 12 member federal court jury late this morning found veteran San Antonio State Senator Carlos Uresti guilty on all 11 counts of fraud he and a co-defendant were facing, News Radio 1200 WOAI reports.
The co-defendant, Gary Cain, was convicted on all counts as well.
Uresti, who has been in the Texas Legislature for more than two decades, was charged with defrauding investors in a company that sold fracking sand, Fourwinds Logistics, by not telling them that the firm was a 'Ponzi Scheme' which was undercapitalized and was presenting phony, photo-shopped documents to investors to grab their money.
At one point, a witness claimed that Uresti went from bouncing checks in 2012 to buying a two million dollar home in Helotes in 2014 on the strength of the money he made ripping off investors of Fourwinds.
Uresti was also convicted of Conspiracy to Launder Monetary Instruments, and Securities Fraud, both federal felonies.
"I think its a somber day for the state, for the city," U.S. Attorney John Bash said. "Whenever someone is in a position of public trust does harm to other people, defrauds other people, that's very sad."
Uresti steadfastly claimed that he knew nothing about the firms' financial condition, that he was simply a 'finder' who was hired to secure investors for the firm, for which he was paid a commission.
Uresti was also convicted of failing to register as a securities broker.
Uresti will be sentenced in June. He will remain free on bond until then. He could lose his seat in the Legislature and could face up to twenty years in prison. Uresti says he will appeal.
Cain, who was a consultant to Fourwinds, was convicted of similar charges.The company's CEO and other employees previously pled guilty to fraud charges.