KILLEEN, Texas — A federal court in Waco sentenced a Killeen man and his wife for defrauding a Department of the Army transportation program by exploiting the personally identifiable information.
The couple stole information of over 800 soldiers, announced U.S. Attorney Jaime Esparza of the Western District of Texas.
According to court documents, Kevin Romulus Pelayo, 45, and his wife, Cristine Furio Fredericks, 40, co-owned and operated Soldiers Vanpools LLC, a rideshare company providing transportation services to military personnel stationed at Fort Cavazos, from January 1, 2014, to June 10, 2020.
The company received funding from the Department of the Army’s Mass Transportation Benefit Program, according to documents.
Pelayo and Fredericks allegedly submitted false claims to the MTBP, providing names, social security numbers, and other identifying information of active-duty soldiers, falsely asserting their participation in the rideshare program.
The couple also purchased numerous vehicles, including vans and SUVs.
In total, Pelayo and Fredericks acquired 43 vehicles, 129 luxury purses and jewelry items, and 12 properties in Bell County and Coryell County using the money from their scheme.
Pelayo was sentenced to 36 months in federal prison after pleading guilty to one count of conspiracy to commit wire fraud and two counts of engaging in monetary transactions involving criminally derived property. Fredericks received a sentence of five years of probation for her involvement in two counts of engaging in monetary transactions involving criminally derived property.
U.S. Attorney Esparza emphasized the severity of the crimes and the diligent investigation conducted by IRS Criminal Investigation and the Department of the Army Criminal Investigation Division.
"We are committed to holding accountable those who seek to defraud programs designed to support our military personnel," Esparza said.