McALLEN, Texas – Daniel Rodriguez Martinez, a 51-year-old Houston man, has been sentenced to federal prison for his role in an elaborate $4 million electricity fraud scheme that spanned over three years. U.S. Attorney Nicholas J. Ganjei announced the sentence yesterday.
Martinez, who pleaded guilty on May 1st, was ordered by Chief U.S. District Judge Randy Crane to serve a total of 54 months behind bars, followed by three years of supervised release. According to court documents, Martinez personally pocketed $1.4 million from the scheme and played a pivotal role in establishing a fraudulent utility company designed to conceal payments.
The scam operated from March 2021 to May 2024, involving the creation of fake electricity accounts using stolen personal information. Customers were duped into paying monthly fees directly to the phony company while their billing responsibilities remained with legitimate power providers. The fraud continued seamlessly as the group opened new accounts with fresh identities when service was terminated for nonpayment.
In court, Martinez admitted to creating the fraudulent electricity services company and using peer-to-peer apps like CashApp and Zelle to receive payments from clients. He then funneled these funds into a business account to mask their illegal origin. As part of his plea agreement, Martinez agreed to forfeit $456,859.76 in U.S. currency and his interest in multiple properties.
He will remain in custody until transferred to a Federal Bureau of Prisons facility. The FBI led the investigation into the case, with Assistant U.S. Attorney Jose A. Garcia prosecuting it.
The sentence handed down yesterday is a stark reminder of the lengths some individuals will go to profit from deception and the dedication of law enforcement agencies in combating such crimes.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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