Texas couple sentenced to prison for targeting wire fraud scheme

KILLEEN, Texas — A federal court in Waco has convicted a Killeen man and his wife of defrauding a Department of the Army transportation program by exploiting personally identifiable information.

The pair stole information on more than 800 troops, said 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 ride-sharing company providing transportation services to military personnel stationed at Fort Cavazos, from the January 1, 2014, to June 10, 2020.

The company received funding from the Department of the Army's Mass Transportation Benefits Program, documents show.

Pelayo and Fredericks allegedly submitted false statements to the MTBP, providing names, social security numbers and other identifying information of active duty soldiers, falsely claiming 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 handbags and jewelry, and 12 properties in Bell and Coryell counties using 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 criminal property. Fredericks was sentenced to five years of probation for her involvement in two counts of monetary transactions involving criminal property.

U.S. Attorney Esparza noted the seriousness 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 intended to support our military personnel,” Esparza said.