A Killeen couple, Kevin Romulus Pelayo, 45, and his wife, Cristine Furio Fredericks, 40, have been sentenced in a federal court in Waco for defrauding a Department of the Army transportation program by using the illegally obtained personally identifiable information (PII) of more than 800 soldiers.
According to court documents, Pelayo and Fredericks co-owned and operated a rideshare company, Soldiers Vanpools LLC, which claimed to shuttle military personnel to and from Fort Hood, now known as Fort Cavazos, from Jan. 1, 2014 through June 10, 2020. The company was funded by the Department of the Army’s Mass Transportation Benefit Program (MTBP).
The couple submitted the names, social security numbers, and other identifying information of active duty soldiers to the MTBP on a monthly basis from 2014 to midway through 2020, falsely claiming that the soldiers were active participants in the rideshare program. This scheme allowed them to receive millions of dollars in funds, which they used to purchase vans, SUVs, and other vehicles to convince the MTBP that they were operating a legitimate business.
However, instead of using the funds for the intended purpose, Pelayo and Fredericks spent a large portion of the money on real estate, personal vehicles, and other property. In total, they purchased 43 vehicles, 129 luxury purses and jewelry items, and 12 real properties in Bell County and Coryell County.
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 was sentenced to five years of probation for two counts engaging in monetary transactions in criminally derived property. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The investigation was conducted by IRS Criminal Investigation and the Department of the Army Criminal Investigation Division, with Assistant U.S. Attorney Greg Gloff prosecuting the case. The sentencing of Pelayo and Fredericks brings an end to a lengthy investigation and prosecution, and serves as a reminder of the consequences of engaging in fraudulent activities against the military and its personnel.
The case highlights the importance of protecting the personally identifiable information of military personnel and the need for vigilance in preventing fraud schemes that target the military community. The Department of the Army’s Mass Transportation Benefit Program is designed to provide transportation benefits to military personnel, and it is essential that the program is protected from fraudulent activities to ensure that it continues to serve its intended purpose.
RELATED: Killeen Couple Sentenced for Defrauding Army Transportation Program with Soldiers’ Info
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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