State Senator Uresti Accused of FourWinds Fraud

Fraud - Dictionary Series

State Senator Uresti Accused of Fraud

In a report by the website www.mysanantonio.com, State Senator Carlos Uresti has been accused of fraud in connection with his involvement in a San Antonio frac sand company that went bankrupt in 2015.

Denise Cantu, a resident of Harligen, Texas, claims that Senator Uresti and other people involved in the investment “tricked” her into believing that she was investing in the now bankrupt company, but instead, company officials just split the money amongst themselves, according to the legal actions she filed in January.

Uresti received a 27,000 dollar commission off of Cantu’s 900,000 dollar investment in the now-defunct FourWinds Logistic frac sand company. Her investment money she used came from the bulk of a legal settlement she received from a wrongful-death case involving two of her children who were killed in a 2010 vehicle accident. Senator Uresti was part of the legal team that represented Cantu in court and helped win the case.

Cantu now accuses Uresti of negligent misrepresentation and breach of fiduciary duty over the FourWinds deal. The legal action she filed seeks unspecified economic and punitive damages.

 

Types of Fraud

The Federal Bureau of Investigation has a list of several common types of fraud cases that they investigate:

  • Business Fraud – A Fraudulent business practice that occurs when dishonest or illegal activities are undertaken in order to be advantageous to the company.
  • Advanced Fee Schemes – This fraud occurs when a person gets a victim to pay money up front for a product or service that never is delivered or fulfilled.
  • Ponzi Schemes – A fraudulent scheme where a person gets multiple people to invest in a false high return investment where the money borrowed by current investors is used to pay off previous investors.
  • Identity Theft – Identity theft occurs when someone assumes your identity to perform a fraud or other criminal act.
  • Market Manipulation Fraud – Mostly referred to as “Pumping and Dumping”, this type fraud happens when a company creates an artificial demand for a security that is largely controlled by the perpetrators and then sold off while the market is inflated.

 

Sadly, there are many dishonest people out there that are trying to make easy money off of honest people. The best defense against most fraudulent activity may be to just adhere to the old adage “If it’s too good to be true, it’s probably not”. Some types of fraud, like identity theft, can happen simply because you left some important personal information out in the trash can. Having your hard-earned money taken from you by a cheat and fraud isn’t a fun thing to have happen. If you feel like you have been swindled, contact our office and let us see how we may be able to help.