71ºF

Disgraced ex-state Sen. Carlos Uresti's name taken off of downtown building

Property at center of legal battle involving bank, fed

SAN ANTONIO – Construction crews equipped with a crane quietly removed disgraced ex-state Sen. Carlos Uresti's name from his old downtown office on Monday.

The building, located at 924 McCullough Ave., served as Uresti's law office. The property is currently at the center of a legal battle involving JP Morgan Chase Bank and the United States.

Chase Bank seeks to recover from Uresti the $325,179.37 remaining balance on the $518,900 loan he took out to purchase the building, noting that it believes its lien on the property supersedes the U.S.' lien that arose after Uresti was sentenced earlier this year. Additionally, Chase Bank wants Uresti to repay $57,502.55 from a loan he took out through the bank.

The bank is asking that, if the U.S. forecloses on the property, Uresti's outstanding debts with Chase be paid out in full first before satisfying the more than $6 million restitution.

The federal government, however, is asking that proceeds from the sale of the McCullough Avenue property go toward "costs and expenses incurred in connection with the sale; any valid taxes or assessments on the property; any prior liens; the remainder to the United States," in that order.

In October, a judge partially lifted a restraining order preventing Uresti from selling property without court approval, allowing Uresti to sell off the McCullough Avenue property and any furniture or equipment in the office.

The battle over how the proceeds from the property should be distributed is ongoing.

Uresti was sentenced to 12 years in federal prison in February on 11 federal fraud charges. In October, he pleaded guilty to federal bribery charges. Uresti remains out on bond and is due back in court in February 2019 for sentencing on the bribery charges.