Michell Garcia, Wire Fraud Scheme, TX 2024

Michell Garcia, 36, and Ray Torres, 46, both of Houston, have pleaded guilty to a years-long wire fraud scheme that siphoned $1,661,163 from their employer, a Florida-based security company with a Houston branch. The pair admitted to fabricating vendor payment requests and funneling company funds into their own and their relatives’ bank accounts using electronic bank tokens and a Texas-based computer.

Garcia entered her guilty plea on February 16, 2018, while Torres pleaded guilty the same day as sentencing was announced. They join co-conspirator Sonja Martinez, 47 of Rosharon, who pleaded guilty on February 9, 2018. All three worked in the Accounting Department of the Houston branch, a division acquired by the Florida firm from a prior company where they were also employed.

From November 2011 to May 2016, the trio exploited their roles managing vendor payments for third-party alarm system installers. They created sham vendor profiles and submitted fraudulent electronic requests to the company’s out-of-state bank, then used authorized bank tokens to approve transfers. The stolen funds flowed through accounts tied to the defendants and their family members.

U.S. District Judge Keith Ellison scheduled Torres’s sentencing for May 10, 2018. Garcia is set for May 3, 2018, and Martinez for April 26, 2018. Each faces up to five years in federal prison and a maximum $250,000 fine. The court has already imposed financial accountability: Torres is liable for $174,647.48, Garcia for $801,198.40, and Martinez for $739,450.36.

All three defendants were released on bond pending sentencing, despite the severity of the theft. The scheme unraveled after internal discrepancies triggered an audit, which led to federal scrutiny. The FBI took over the investigation, uncovering electronic trails and falsified records linking the defendants to the fraudulent payments.

The case is being prosecuted by Assistant U.S. Attorney Belinda Beek. U.S. Attorney Ryan K. Patrick confirmed the pleas, underscoring the federal crackdown on employee-driven financial crimes that exploit trusted access. The $1.66 million heist stands as one of the largest internal frauds in recent Houston corporate history.