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Texas sheriff, staffer charged with COVID-era fraud scheme

The brother of Democratic Rep. Henry Cuellar has been indicted for a scheme to defraud a Texas sheriff’s office during the COVID-19 pandemic.

Webb County Sheriff Martin Cuellar and Assistant Chief Alejandro Gutierrez allegedly used the sheriff’s office staff and resources to run a for-profit disinfecting business during the COVID-19 pandemic.

The two appeared in federal court before U.S. Magistrate Judge Christina Bryan in Houston.

Martin Cuellar has pleaded not guilty and was released on bond.

The now unsealed five-count indictment alleges that between 2020 and 2022, the two conspired with former assistant chief Ricardo Rodriguez to misappropriate office funds.

They allegedly opened a disinfectant business and entered into service agreements with local businesses and restaurants despite having no employees or supplies of their own, even securing a $500,000 contract to clean United Independent School District schools in Laredo. 

They used the sheriff’s office equipment for services, both on and off the clock, and allegedly operated almost entirely with county employees and supplies for two years.

The three each received approximately $175,000, and Martin Cuellar allegedly used part of his proceeds to buy property in Laredo.

Henry Cuellar, Texas Democrat, was recently pardoned on federal corruption charges by President Trump. He was indicted in May 2024 on a dozen counts of bribery, money laundering and conspiracy related to his relationship with a foreign oil-and-gas company and bank.

Mr. Trump said this was an example of former President Joseph R. Biden prosecuting his political opponents and people who disagreed with him.

The president criticized his “lack of loyalty” for deciding to run again as a Democrat — his 12th term — after receiving the presidential pardon.

Now the Trump administration is doubling down on the other Cuellar brother.

Martin Cuellar maintains his innocence, just as Henry Cuellar did.

“While this process moves forward, I ask the public to let the facts—not rumors, not speculation—guide their judgment,” he said in a statement. “My responsibility remains the same as it was yesterday and the day before: to protect this county, to support the brave and dedicated deputies and staff who put on the uniform every day, and to ensure the safety and well-being of every resident we serve.”

He said he will remain fully engaged in his duties despite the charges. He was reelected as sheriff in 2024, a position he has held since 2009.

If convicted, Martin Cuellar and Mr. Gutierrez both face up to 10 years in federal prison and a maximum $250,000 fine. Martin Cuellar is additionally charged with money laundering, which carries an additional 10 years in prison and another fine of up to $250,000.

Mr. Rodriguez previously pleaded guilty and is set for sentencing on March 16.

“I have spent 45 years serving the State of Texas and this community with integrity and honor. That commitment has not changed. I respect our justice system, and I am confident that when the facts are fully and fairly examined, the truth will be clear,” Martin Cuellar said.

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