Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
A man from Mission, Texas, has been sentenced to over 11 years in federal prison for his involvement in a conspiracy aimed at monopolizing the transmigrante forwarding agency industry along the Los Indios border. Carlos Martinez, who admitted guilt earlier this year, played a significant role in controlling the industry through monopolization and extortion tactics.
U.S. District Judge George C. Hanks Jr. sentenced Martinez to 132 months of imprisonment, followed by three years of supervised release, and imposed a $2 million fine. The scheme involved using fear to manipulate pricing and eliminate competition through "pool" allocations and piso payments.
Transmigrantes are responsible for transporting used vehicles and goods from the United States through Mexico for resale in Central America. Only certain U.S. border crossings allow these transports into Mexico. Martinez's group fixed prices for forwarding services and established a centralized entity called the "pool" to manage revenue among conspirators.
U.S. Attorney Nicholas J. Ganjei stated, “Price fixing is not a victimless crime; it harms customers in the form of artificially high prices." He emphasized that consumers should trust that market prices are determined fairly rather than through illegal collusion.
Matthew R. Galeotti from the Justice Department’s Criminal Division noted that Martinez's actions increased costs illegally for those attempting to make an honest living in freight forwarding. Assistant Attorney General Abigail Slater highlighted the threat posed by violent actions aimed at market monopolization.
Special Agent Craig Larrabee of ICE-HSI San Antonio remarked on the case's implications regarding transnational criminal networks operating at borders. The FBI’s Aaron Tapp stressed their commitment to dismantling such organizations to ensure fair markets free from violence or manipulation.
Martinez's operations included seizing control of key locations like the Los Indios bridge and enforcing compliance with pool rules through intimidation and violence. Forwarders outside the conspiracy were coerced into joining and paying extortion fees under threat of severe consequences.
The investigation was led by ICE-HSI and FBI agents, while Assistant U.S. Attorney Alexander L. Alum is prosecuting alongside several trial attorneys from different divisions within the Justice Department.
Seven others have been convicted in connection with this case, with three already sentenced.
