The man who led the Ponzi scheme that resulted in the conviction of former State Senator Carlos Uresti will not be sentenced in federal court today as scheduled, News Radio 1200 WOAI reports.
Stanley Bates was set to learn his fate this afternoon after pleading guilty to charges relating to the collapse of FourWinds Logistics, were he was president and CEO.
But as his sentencing hearing began this afternoon, prosecutors alleged that Bates had been using fake names to hide cash which could possibly be used to pay restitution to victims. So U.S. District Judge David Ezra agreed to delay sentencing until next month so those allegations can be resolved.
"We have a history of Mr. Bates not being honest. That's why he's sitting in court today," Judge Ezra said in court. "I have grave concerns about compliance."
Bond was also revoked for Bates, who was taken into custody as both the prosecution and his defense teams investigate. If the allegations turn out to be true, it would mean a much higher prison sentence. He was given credit for accepting responsibility.
Bates started FourWinds to supply fracking sand to the booming Eagle Ford Shale in 2014, but testimony at Uresti's trial indicated the firm quickly mirrored something out of the move 'Wolf of Wall Street.' Witnesses testified that Bates used investor money to fly in hookers from Vegas, guzzle booze before noon in the executive suite, and buy drugs.
Testimony at Uresti's trial indicated that, on Bates' orders, the company forged financial statements to make it appear it was flush with cash, and even 'PhotoShopped' photos showing trainloads of fracking sand ready to be delivered, when in reality, FourWinds had no money and no sand.
Bates pled guilty. Uresti went to trial and was convicted on multiple counts of fraud. He was sentence to 12 years in prison, has surrendered his law license, and recently told the court he is too broke to even buy groceries.
The new sentencing date has been set for September 11th.