Killeen couple sentenced for fraudulent carpooling scheme | KWKT

Killeen, Texas (FOX 44) – A Killeen man and his wife were convicted in Waco federal court of defrauding a Department of the Army transportation program by using illegally obtained personal information on more than 800 soldiers.

According to court documents, Kevin Romulus Pelayo, 45, co-owned and operated a ride-sharing company called Soldiers Vanpools LLC with his wife, Cristine Furio Fredericks, 40. The company claimed to have transported military personnel to and from Fort Hood, now known as Fort Cavazos, from January 1, 2014 to June 10, 2020. Soldiers Vanpools LLC was funded by the Mass Transportation Benefits Program of the Ministry of the Army.

Pelayo and Fredericks submitted the names, Social Security numbers and other identifying information of active duty soldiers to the MTBP on a monthly basis from 2014 to mid-2020, falsely claiming that the soldiers were actively participating in the rideshare program. 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 passengers they claimed in their scheme.

The couple also spent much of the millions of dollars in funds received on real estate, personal vehicles and other assets. In total, Pelayo and Fredericks purchased 43 vehicles, 129 luxury handbags and jewelry, and twelve real estate properties in Bell and Coryell counties.

Pelayo was sentenced to 36 months in prison 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 for two counts of monetary transactions involving criminal property.

The IRS Criminal Investigation and the Army Criminal Investigation Department investigated the case. Assistant United States Attorney Greg Gloff prosecuted the case.