Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
Another individual has admitted guilt in a prolonged conspiracy involving price fixing, extortion, and money laundering. Jose de Jesus Tapia Fernandez from Brownsville confessed to conspiring to commit money laundering. He joins seven others who have pleaded guilty for their roles in a scheme aimed at monopolizing the transmigrante forwarding agency industry near Harlingen and Brownsville.
Carlos Martinez, also known as Cuate, from Mission, led the conspiracy. He had previously confessed to conspiring to fix prices and allocate the market for transmigrante forwarding agency services. This included interference with commerce by extortion and conspiracy to commit money laundering.
Transmigrantes transport used vehicles and other goods from the United States through Mexico for resale in Central America. U.S.-based transmigrante forwarding agencies assist these clients with completing Mexican customs paperwork necessary for exporting vehicles into Mexico.
"Price fixing harms both the public and the business community," stated U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. "Schemes like this artificially drive up prices, forcing consumers to pay more than they ordinarily would."
Emma Burnham, Director of Criminal Enforcement at the Justice Department’s Antitrust Division, remarked that these guilty pleas bring justice to those who used violence and extortion to control essential services markets.
Craig Larrabee, Special Agent in Charge of Homeland Security Investigations San Antonio, highlighted that this violent scheme was fueled by greed undermining safety and economic security in the border region.
Chad Yarbrough, Assistant Director of the FBI Criminal Investigative Division, emphasized that their guilty pleas send a clear message about the seriousness of price fixing and market allocation crimes.
The co-conspirators enforced rules by requiring industry participants to pay into a "Pool," dividing revenues among themselves. They monitored compliance through social media postings and other methods.
Martinez was responsible for $9.5 million in extortion payments. Both he and Tapia Fernandez laundered proceeds from these activities through bank accounts controlled by Martinez's family.
Pedro Antonio Calvillo Hernandez, Roberto Garcia Villareal, Sandra Guerra Medina, Mireya Miranda, Carlos Yzaguirre, and Juan Hector Ramirez Avila have also pleaded guilty to various charges related to this scheme.
Martinez agreed to forfeit properties and cash while paying fines and restitution. Guerra, Miranda, Calvillo, and Villareal will also pay fines under their plea agreements.
Three individuals remain fugitives: Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto. Information on their whereabouts can be reported to HSI at 1-866-DHS-2-ICE (1-866-347-2423).
Conspiracy violations under the Sherman Act carry potential penalties including up to 10 years in prison or fines up to $1 million. Extortion-related conspiracies may lead to 20-year sentences with fines reaching $500,000 depending on specific charges.
The investigation was conducted by several agencies including the Justice Department’s Antitrust Division alongside HSI and FBI officials. Assistant U.S. Attorney Alexander L. Alum is prosecuting with support from other trial attorneys involved in antitrust cases.
Information related to this case can be reported via the Antitrust Division’s Complaint Center at 888-647-3258 or online at http://www.justice.gov/atr/report-violations.
