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Killeen Couple Sentenced for Defrauding Army Transportation Program with Soldiers’ Info
A federal court in Waco handed down severe sentences to a Killeen couple who defrauded the Department of the Army’s transportation program by using the personally identifiable information of over 800 soldiers.
Kevin Romulus Pelayo, 45, and his wife Cristine Furio Fredericks, 40, co-owned and operated Soldiers Vanpools LLC, a rideshare company that claimed to transport military personnel to and from Fort Hood from January 1, 2014, through June 10, 2020. The company received millions of dollars in funding from the Department of the Army’s Mass Transportation Benefit Program (MTBP).
However, Pelayo and Fredericks submitted the names, social security numbers, and other identifying information of active-duty soldiers to the MTBP on a monthly basis, falsely claiming they were active participants in the rideshare program. The couple spent a large portion of the millions of dollars in funds they received on real estate, personal vehicles, and other property.
During the scheme, Pelayo and Fredericks purchased 43 vehicles, 129 luxury purses and jewelry items, and 12 real properties in Bell County and Coryell County. The couple’s lavish spending was a clear indication of their illicit activities.
Pelayo was sentenced to 36 months in prison for one count of conspiracy to commit wire fraud and two counts of engaging in monetary transactions in criminally derived property. Fredericks received five years of probation for two counts of engaging in monetary transactions in criminally derived property.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. IRS Criminal Investigation and the Department of the Army Criminal Investigation Division investigated the case. Assistant U.S. Attorney Greg Gloff prosecuted the case.
RELATED: Killeen Couple Gets 60 Years for Child Porn, Abuse
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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