A federal prosecutor disclosed Monday that proceeds of a fraudulent $10,000 loan from a Reeves County credit union went to an investor in a fraud scheme that landed ex-legislator Carlos Uresti in prison, the San Antonio Express-News reported.
The loan was arranged by former Reeves County Teachers Credit Union CEO James Dutchover and proceeds went to Denise Cantu, who said during Uresti’s trial that he had been her financial adviser and, eventually, her lover. Uresti denied that they were lovers, the Express-News reported.
Assistant U.S. Attorney William Harris made the revelation during the sentencing hearing in Pecos for Dutchover, who got eight months in federal prison for conspiracy to commit bank fraud in connection with the loan, whose proceeds were passed along by Cantu to Uresti, a former state senator from San Antonio.
Uresti helped Cantu get a $2.5 million legal settlement for the deaths of two of her children in a 2010 car wreck when he worked as an attorney. Uresti later recommended that Cantu invest $900,000 in San Antonio oil field services company FourWinds Logistic, which turned out to be a Ponzi scheme that defrauded investors, the newspaper reported.
Cantu eventually lost $800,000 of her investment. Uresti is now serving a 12-year prison sentence for his involvement with FourWinds and is scheduled to be released in 2029.
The $10,000 loan was made in the name of one of Dutchover’s relatives because Uresti was not a member of the credit union. That relative was then directed by Uresti to write a $10,000 check to a “third-party payee,” whom Harris said was Cantu, the newspaper reported.
The Express-News reported it is unclear why Uresti had the $10,000 paid to Cantu. Her lawyer, Oscar Alvarez, said he knew nothing about it.