WACO, Texas - A Killeen couple have been sentenced for claiming to operate a rideshare company for soldiers and defrauding the U.S. Army of millions.
45-year-old Kevin Romulus Pelayo was sentenced to three years in prison for one count of conspiracy to commit wire fraud and two counts of engaging in monetary transactions in criminally derived property.
40-year-old Cristine Furio Fredericks was sentenced to five years of probation for two counts of engaging in monetary transactions in criminally derived property.
According to court documents, the couple co-owned and operated Soldiers Vanpools LLC, which claimed to shuttle military personnel to and from Fort Cavazos, formerly Fort Hood, from Jan 2014 to June 2020. The company was funded by the Army's Mass Transportation Benefit Program (MTBP).
The two submitted names, social security numbers, and other identifying information of active duty soldiers to the MTBP on a monthly basis for years, falsely claiming that the soldiers were active participants in the rideshare program, says the US Attorney's Office.
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The couple also purchased vans, SUVs and other vehicles in order to convince the MTBP that they were operating a legitimate business and transporting riders.
Pelayo and Fredericks spent a large portion of the millions in funds they received on real estate, personal vehicles, and other property, says the US Attorney's Office. In total, the pair purchased 43 vehicles, 129 luxury purses and jewelry items, and 12 real properties in Bell County and Coryell County.