Killeen couple convicted of defrauding military with rideshare company

WACO, Texas (KXXV) — Federal authorities have convicted a Killeen couple of fraud after they were found guilty of operating an illegitimate ride-sharing service for soldiers.

Kevin Romulus Pelayo, 45, and his wife, Cristine Furio Fredericks, 40, were sentenced in federal court in Waco.

The U.S. Attorney's Office for the Western District of Texas said Pelayo and Fredericks defrauded the Department of the Army transportation program by illegally obtaining the personal identifying information of more than 800 soldiers.

Court documents indicate Pelayo and Fredericks co-owned and operated a rideshare company called Soldiers Vanpools LLC, a company that purported to transport military personnel to and from Fort Cavazos from January 1, 2014 to June 10, 2020.

Federal officials said Soldiers Vanpools LLC was funded by the Army Mass Transportation Benefit Program, or MTBP.

Personal information, such as names and Social Security numbers, of active-duty service members was submitted monthly by the couple to the MTBP from 2014 to 2020. Federal officials said Pelayo and Fredericks falsely claimed these soldiers were participating actively participate in their carpooling. services.

To convince the MTBP of the legitimacy of their business, federal officials said the couple purchased pickup trucks, SUVs and other vehicles believed to be used to transport soldiers.

Federal officials said the couple received millions of dollars in funding that they spent on real estate, personal vehicles and other assets.

The couple purchased 43 vehicles, 129 handbags and jewelry, as well as 12 real estate properties in Bell and Coryell counties, federal officials said.

Pelayo will serve a 36-month prison sentence for one count of conspiracy to commit wire fraud and two counts of participating in monetary transactions involving criminal property.

Fredericks was sentenced to five years probation on two counts of engaging in monetary transactions involving criminal property.