After a one month delay, the con man who hired now-former Texas State Senator Carlos Uresti as the lawyer for his pyramid scheme is set to be sentenced today in San Antonio's federal court, Newsradio 1200 WOAI reports.
Stan Bates was one of a handful of employees from the now-defunct FourWinds Logistics who were indicted by the feds in a massive fraud scheme. The former CEO pled guilty right before his trial was set to start.
Bates was set to be sentenced last month, but prosecutors at the time made new allegations that he had been using fake names to hide cash which could possibly be used to pay restitution to victims. U.S. District Judge David Ezra delayed the sentencing until today so those allegations could 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."
Bates was free at the time, but was taken into custody.
In court filings, defense lawyers for Bates are asking for around a five year sentence. But, 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 movie 'Wolf of Wall Street.'
Witnesses testified that Bates used investor money to fly in hookers from Las 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.
Uresti was eventually convicted by a jury of multiple fraud counts. He was sentence to 12 years in prison and has surrendered his law license.