Special to the NEWS
WASHINGTON, D.C. —Earlier this week, the U.S. Department of Justice announced that Roberto Garcia Villarreal, 59, of San Benito, was sentenced to 30 months in prison and ordered to pay a $50,000 criminal fine for his involvement in a long-running, violent conspiracy to monopolize the transmigrante forwarding agency industry in the Los Indios border region.
Villarreal and his co-defendants dominated the transmigrante industry through monopolization and extortion of competitors. The Court remanded Villarreal into custody to serve his sentence immediately.
“Antitrust criminals deserve lengthy sentences for the economic — and in this case physical — violence they cause,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division.
“The Antitrust Division is proud to have collaborated with our law enforcement partners on this long-running investigation that will restore competition and punish violent criminals at the U.S.-Mexico border. We will keep working to imprison antitrust offenders and hold the remaining co-defendants accountable in this scheme,” Gald added.
“Roberto Garcia chose to join a criminal enterprise that seized control of an industry through threats and violence, manipulated prices against legitimate businesses, and laundered its profits — and now, he is headed to federal prison,” said U.S. Attorney Nicholas J. Ganjei of the Southern District of Texas.
“Today’s sentence shows that no one involved in this conspiracy will avoid punishment. Even if the conspiracy is over, the Southern District of Texas is just beginning,” Ganjei added.
“The use of violence and intimidation to threaten and eliminate competition will not be tolerated,” said Acting Assistant Director Gregory Heeb of the FBI Criminal Division. “Today’s sentencing demonstrates the FBI’s dedication to investigating and holding accountable those responsible for price fixing and extortion schemes.”
“This case highlights the serious threat posed by transnational criminal organizations operating near our borders,” said Acting Special Agent in Charge John A. Pasciucco of the HSI San Antonio Field Office.
“As an accomplice in carrying out a violent operation that targeted small businesses for extortion, manipulated market prices, and hid millions of dollars in illicit funds—undermining the security and fairness of lawful trade—HSI will relentlessly pursue those who harm legitimate industries through dishonest actions and intimidation. Our dedication to protecting our communities and economic stability remains strong,” he added.
Transmigrantes organize and carry used vehicles and other goods from the United States through Mexico for resale in Central America. There are only a few points where transmigrantes can cross from the United States into Mexico, one of which is the Los Indios Bridge.
Transmigrante forwarding agencies are U.S.-based companies that help transmigrante clients complete the customs paperwork needed to export vehicles into Mexico.
According to court documents and statements, Villarreal and his co-defendants fixed prices for transmigrante forwarding agency services and created a centralized entity called the “Pool” to collect and divide revenues among the co-conspirators, limit competition from other agencies, and increase prices for their services.
Forwarding agencies that weren’t part of the conspiracy had to join and contribute to the Pool. Villarreal and other Pool members enforced the rules by checking if forwarding agencies charged the agreed prices and paid into the Pool. These agencies also had to pay additional extortion fees, including a “piso” for each transaction processed in the industry.
Villarreal pleaded guilty to conspiracy to illegally fix prices and divide the market for transmigrante forwarding agency services; conspiracy to monopolize that market; and conspiracy to disrupt commerce through extortion.
Eight others have been convicted so far, with seven already sentenced in the case, including the leader, Carlos Martinez, 39, of McAllen, who received an 11-year prison sentence.
Three others—Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto—were also charged in the superseding indictment and are still at large.
Anyone with information about their whereabouts or related to this investigation is encouraged to contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and the FBI investigated the case.
Senior Litigation Attorney John Davis, Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the Antitrust Division; Deputy Chief Kelly Pearson of the Criminal Division’s Violent Crime and Racketeering Section; and Assistant U.S. Attorney Alexander L. Alum from the Southern District of Texas prosecuted the case.
Anyone with information related to this investigation should contact the HSI Tip Line at 866-347-2423, the FBI Tip Line at tips.fbi.gov, or reach out to the FBI San Antonio Field Office at 210-225-6741.
The public can also contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
Whistleblowers who voluntarily report original information about antitrust and related violations that lead to criminal fines or other recoveries of at least $1 million may qualify for a whistleblower reward.
Whistleblower awards typically range from 15 to 30 percent of the recovered funds.
For more details about the Antitrust Whistleblower Rewards Program, including how to submit reports, visit https://www.justice.gov/atr/whistleblower-rewards.