5 plead guilty to 'factoring' scheme to defraud several Texas banks
SAN ANTONIO, Texas - Five people have pled guilty to participating in a "factoring" scheme to defraud several banks in Texas.
49-year-old Ronald Wayne Schroeder of Canyon Lake, 60-year-old Jill Martin Alvarado of Irving, 57-year-old Rigo Alvarado of Barstow, 58-year-old Ryan Martinez of San Antonio and 80-year-old Phyllis Joe Martinez of San Antonio all each pled guilty to one count of conspiracy to commit bank fraud.
All five conspired to defraud various financial institutions of money by factoring false and fraudulent invoices, according to court documents. The US Attorney's office says "factoring" is when a company sells specific accounts receivable to a third party at a discounted price to accelerate its cash flow.
Court documents say that Schroeder "factored" false invoices for companies owned by the other four with Southwest Bank and Bank of San Antonio. Then they would use the money for personal enrichment or to pay off old invoices owed to the financial institutions.
Three companies involved in the scheme included: Nerd Factory, owned by Ryan Martinez and later, Phyllis Martinez; Alvy’s Logistics, owned by Jill and Rigo Alvarado; and Republic Logistics, a fake company created and used by Schroeder to steal money for himself.
According to court records, false and fraudulent invoices from Nerd Factory were factored by Southwest Bank and then Bank of San Antonio. That money would then be used by the owners for legal fees in a pending criminal federal case or as unearned profit. Alvy’s Logistics and Nerd Factory also sent back some of the money to Schroeder.
Schroeder also submitted fake invoices from Republic Logistics to BOSA for payment. Schroeder then used this money to purchase expensive items, such as cars, RVs, an airplane, boat, and a beach house as well as $50,000 in landscaping and the installation of a $100,000 pool. Several items were also seized and forfeited, including a Shelby Mustang and proceeds for the sale of a Port Aransas property, and Schroeder’s interest in a Columbia single engine aircraft was sold.
Four of the defendants have been sentenced:
- Schroeder was sentenced to 97 months in prison, and has been ordered to pay $8.9 million in restitution and a $2.9 million money judgment for the proceeds derived from his criminal activity
- Phyllis Martinez was sentenced to time served and has been ordered to pay $289,984 in restitution
- Jill Alvarado was sentenced to time served and has been ordered to pay $3,904,924.92 in restitution
- Rigo Alvarado was sentenced to 48 days imprisonment and has been ordered to pay $3,904,924.92 in restitution
Sentencing is still pending for Ryan Martinez.