In a recent ruling that underscores the intersection of technology and trust, a couple from Killeen has been sentenced for operating a fraudulent rideshare business targeting military personnel. Kevin Romulus Pelayo, 45, and his wife, Cristine Furio Fredericks, 40, owned and managed Soldiers Vanpools LLC, a company that falsely claimed to provide transportation services to soldiers commuting to and from the renamed Fort Cavazos, formerly Fort Hood.
Details from a statement released by the Department of Justice reveal that between 2014 and 2020, the couple exploited the Department of the Army’s Mass Transportation Benefit Program (MTBP) by using stolen personal information of over 800 soldiers. This deceit not only falsely inflated their business but, also directed millions of taxpayer dollars into their pockets. Throughout the six-year span, their scheme involved purchasing vehicles, luxury items, and real estate, which included 43 vehicles, 129 luxury purses and jewelry items, and 12 properties, according to the court documents.
Authorities cracked down on Pelayo and Fredericks' multi-year ruse, resulting in Pelayo's sentencing to 36 months in prison on charges including conspiracy to commit wire fraud and engaging in monetary transactions with criminally derived property. Fredericks, convicted on awards of engaging in monetary transactions with criminally derived property, will serve five years of probation. The investigation, led by IRS Criminal Investigation and the Department of the Army Criminal Investigation Division, brought the couple's illegal activities to light.
"The couple also purchased vans, SUVs and other vehicles in order to convince the MTBP that they were operating a legitimate business and transporting the riders they claimed in their scheme," according to the Justice Department's report. U.S. Attorney Jaime Esparza of the Western District of Texas announced the sentences, highlighting the collaborative efforts in uncovering the fraudulent operations of the Killeen-based company. Assistant U.S. Attorney Greg Gloff was the prosecutor on the case, demonstrating the legal ramifications for such manipulation of government programs.
