Nov. 08–Convicted felon Gary Cain, who was scheduled to begin serving a more than five-year prison sentence Friday, had his remaining days of freedom cut short.
Senior U.S. District Judge David A. Ezra apparently ordered Cain’s arrest last Friday. The order was filed under seal, so the circumstances of what led to Cain’s arrest have not been made public.
Cain and former state Sen. Carlos Uresti were convicted by a jury in February on a total of 20 charges in connection with their roles in FourWinds Logistics –a now-defunct oil field services company that defrauded investors.
Ezra sentenced Cain to 68 months in prison, while Uresti received a 12-year prison term. The pair also were ordered to pay $6.3 million in restitution to victims.
Cain is being held at the Central Texas Detention Facility in San Antonio.
San Antonio attorney Stephanie Stevens, who is representing Cain in the appeal of his conviction, declined to comment when reached Thursday. Daryl Fields, a spokesman for the U.S. attorney’s office in San Antonio, said he could not comment on the matter.
In a court motion Monday, Stevens said Cain was arrested shortly after Ezra issued his order. Stevens wants Ezra’s order and any related motion — if one was filed by prosecutors — unsealed.
A day before Cain’s arrest, the U.S. 5th Circuit Court of Appeals denied his request to remain free on bond pending the outcome of his appeal.
Prosecutors alleged in a Sept. 21 court filing that Cain has used family and friends — including Bexar County District Attorney Nico LaHood and his father, former Judge Michael LaHood –to shield assets to avoid paying victims in the FourWinds fraud.
Ezra subsequently issued a restraining order that bars Cain, the LaHoods and others from dissipating, transferring or concealing property belonging to Cain. The order also prevents them from saddling any debt on Cain’s property, including a Shavano Park house that’s valued at $1.3 million by Bexar County.
It’s not known if the allegations against Cain regarding his assets figured in his arrest.
Cain and LaHood were business partners in a company that did work for FourWinds. Before he became district attorney, LaHood successfully defended Cain against criminal charges that he had defrauded Rackspace Hosting Inc. in a 2007 land deal.
Not long after his acquittal, Cain was hired as a consultant for FourWinds. The company purported to sell sand used in hydraulic fracturing in oil production.
Uresti served as FourWinds’ outside counsel and raised money from investors. He surrendered his law license and gave up his Senate seat following his conviction.
Staff Writer Guillermo Contreras contributed to this report. — Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. — firstname.lastname@example.org — Twitter: @AlamoPD
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