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UnitedStatesDistrictCourt
Southern District of Texas
UNITEDSTATESDISTRICTCOURT FILED
MAY 2 2 2013
SOUTHERNDISTRICTOFTEXAS
BROWNSVILLEDIVISION
DavidJ.Bradley, Clark
UNITEDSTATESOFAMERICA CRIMINALNO.B-12-435-Sl
vs.
TOMASYAruUNGTONRUVALCABA
FERNANDOALEJANDROCANOMARTINEZ
SEALED
SUPERSEDINGINDICTMENT
THEGRANDJURYCHARGES:
COUNTONE
TheEnterprise
Atvarioustimesrelevantto CountOne
TOMASYArullNGTONRUVALCABA
and
FERNANDOALEJANDROCANOMARTINEZ
Defendants, and others known and unknownto the grandjury, were members and associates of
anenterprise,acriminalorganizationwhosemembersengagedinactsof illegaldrugimportation
and distribution, moneylaundering, bankfraud, and structuringofcurrencytransactions, and
which operatedprincipallyinthe SouthernDistrictofTexas,the WesternDistrictofTexas, and
theState Mexico.
The organization, including its leadership, membership, and associates, constituted an
enterpriseas thattermis definedbyTitlel8,UnitedStatesCode, Section 1961(4).Theenterprise
Unsealed 12-2-13
constituted an ongomg organization whose members functioned as a continuing unit for a
common purpose of achieving the objectives of the enterprise. This enterprise was engaged in,
and its activities affected, interstate and foreign commerce.
Purposes of the Enterprise
I. The purposes of the enterprise included the following:
a. To enrich the members and associates of the enterprise through, among other things,
the importation and distribution of controlled substances in the United States on an ongoing
basis, bribery, and theft of public property.
b. To preserve and protect the proceeds and profits of the enterprise through, among other
things, various acts of money .laundering and structured currency transactions.
c. To insulate the leaders of the enterprise and its activities from interference by law
enforcement.
d. To acquire loans from banks by fraud using false information, front names and shell
entities.
Means and Methods of the Enterprise
2. Among the means and methods by which the Defendants, their conspirators and their
associates conducted and participated in the conduct of the affairs of the enterprise. were the
following:
a. Members of the enterprise arranged for the acquisition, storage, concealment, and
distribution of large quantities of cocaine and marihuana on an ongoing basis.
b. . Members of the enterprise and their associates arranged for the use of parcels of real
estate and the buildings thereon as places of storage for and distribution of controlled substances
2
..
andthecollectionofmoneyfrom salesthereof.
c. Members of the enterprise and their associates used communication facilities to
advancetheaffairsoftheenterprise.
d. Members ofthe enterprise and their associates obtained conveyances including cars,
trucks,airplanes,trailers,andtractor-trailerrigsforuseintheaffairsof theenterprise.
e. Members ofthe enterprise and their associates arranged to collect, count, store, and
distributetheillegalincomegeneratedbytheenterprise.
f. Members ofthe enterprise and their associates arranged to disguise, hide, convert,
invest,protect,andotherwiselaundertheillicitprofitsandproceedsfromtheenterprise.
g. Members ofthe enterprise and their associates traveled and caused travel ininterstate
andforeigncommerce.
h. Members ofthe enterprise and their associates used front names, nominee names, the
names ofotherpersons, and the services ofotherpersons to conceal their ownparticipation in
the affairs of the enterprise, and the acquisition of assets with proceeds generated by the
enterprise. Suchnomineesnames includedthose ofvarious limitedpartnerships,limitedliability
companies, and corporateentitiesestablished underthelawsofthe StateofTexas, and business
entitiesestablishedinMexico.
i. Members ofthe enterprise and their associates expanded the affairs ofthe enterprise
overtimetoincludenewmembersandassociatesandnewmethodsneededtoinsuretlie ongoing
operationsoftheenterprise.
j. Members ofthe enterprise and their associates endeavored to maintain control over
proceedsgainedthroughthe operationoftheenterprise.
3
..
k. Members of the enterprise and their associates engaged in acts of bribery, deceit,
counter surveillance, and evasion to protect themselves and assets and proceeds of the enterprise
from detection and interference by law enforcement.
I. Members of the enterprise and their associates sought in the State of Tamaulipas,
Mexico, the corrupt assistance of law enforcement officers, political leaders, justice sector
officials, and military deserters to further the affairs of the enterprise.
m. Members. of the enterprise and their associates obtained loans via fraud from banks
and other lendip.g institutions.
The Racketeering Conspiracy Violation
From an unknown date, believed to be in the year of 1998, and continuously thereafter up
to and including the date of this indictment, both dates being inclusive, in the Southern District
of Texas, and elsewhere, and in the jurisdiction of this court
TOMASYAruUNGTONRUVALCABA
and
FERNANDOALEJANDROCANOMARTINEZ
Defendants herein, being persons employed by and associated with an enterprise, which was
engaged in, and the activities of which affected interstate and foreign commerce, did unlawfully,
knowingly, and intentionally conspire, combine, confederate, and agree together and with
diverse other persons, known and unknown to the grand jury, to commit an offense against the
United States, to-wit: a violation of Title 18, United States Code, Section 1962 "[c], that is, to
conduct" and participate, directly and indirectly; in the conduct of theaffairs of that enterprise
through a pattern of racketeering activity, as that term is defined by Title 18, United States Code,
Sections 1961 (1) and (5).
4
ItwasafurtherpartoftheconspiracythattheDefendantsagreedthataconspiratorwould
commit at least two acts ofracketeering activity in the conduct ofthe affairs ofthe enterprise.
The pattern ofracketeering activitythrough which the Defendants agreed to conduct the affairs
of the enterprise consisted of multiple acts involving the illegal importation of controlled
substances in violation ofTitle 21, United States Code, Sections 952 and 959, conspiracy to
illegally importcontrolled substances in violation ofTitle 21, United States Code, Section 963,
and acts indictableunderTitle 18, United StatesCode, Sections 1344, 1956, 1957, and Title 31,
UnitedStatesCode, Section5324.
OVERTACTS
Pursuanttotheconspiracy,thefollowingandotherovertactswerecommittedinthe
SouthernDistrictofTexasandelsewhere:
1. During the course of the consp1racy there existed .a large scale criminal
organizationknown as the GulfCartel. The armed branch or "muscle" ofthe GulfCartel was
knownastheZetas,whichconsistedinpartof militarydesertersfromthearmedforcesof Mexico.
TheheadquartersoftheGulfCartelwasMatamoros,Tamaulipas,Mexico,acrossfromtheCityof
Brownsville,Texas.
2. TheGulfCartelengagedinnumerouscriminalactivitiesincludingtheacquisition,
possessionanddistributionoflargequantities ofcontrolledsubstances,includingmarihuanaand
cocaine,smugglingof suchcontrolledsubstancestotheUnitedStates,extortions,kidnappingsand
murders.
3. Theprimarymarketforthecontrolledsubstances acquiredbytheGulfCartelwas
theUnitedStates. Duringthecourseofthisconspiracylargequantitiesofcocaineandmarijuana
5
were smuggled into the United States. Such cocaine and marihuana weredistributed in the
Southernand WesternDistrictsofTexas,and elsewhereintheUnitedStates. Proceedsfromthis
illegal drug activityproducedlarge amounts ofU.S. currencywhich was returned to the Stateof
Tamaulipas,Mexico.
4. In order to continue theirillegal business, members and associates ofthe Gulf
Cartelusedportionsof theillegalproceedsfromtheactivitiesnotedinparagraphs2and3aboveto
pay large bribes to high elected officials, and candidatesfor suchhigh elected office, withinthe
StateofTamaulipason anongoingbasis. Thepurposeofsuchbribeswastoallowthemembers
and associates ofthe GulfCartel to continue their illegal business with little orno interference
frompoliceauthoritiesoperatinginthe StateofTamaulipas.
5. Thebribes werepaiddirectlyto corrupthigh elected officials, to otherpersonsin
alliancewithsuchcorrupthighelectedofficials,corruptcandidatesforhighelectedoffice,persons
in alliance with such corrupt candidates for high elected office, police authorities, and persons
within the justice sector ofthe State ofTamaulipas. The sources ofsuch bribery payments
includedtheproceedsofthecriminalactivityofthe GulfCartel,itsmembersanditsassociates.
6. Startingapproximately 1998 and continuingthereafterTOMAS YARRINGTON
RUVALCABA, whowasthenacandidatefor the officeofGovernoroftheStateofTamaulipas,
andassisted by corruptmembers oftheTamaulipasStatePolice,receivedbribesfrom largedrug
organizationsthenoperatinginTamaulipas,includingtheGulfCartel. Suchbribes~ r collected
bymembers ofthe StatePoliceanddeliveredtothecontrol ofJesusVegaSanchezandTOMAS
YARRINGTONRUVALCABA.Theamountofsuchbribesperpaymentvaried,putintotalwas
inthemillionsofdollars.
6
7. Duringtheyear 1998TOMASYARRINGTONRUVALCABAdirecteda
conspiratorto acquire a luxurycondominium for TOMASYARRINGTONRUVALCABAon
SouthPadreIsland, Texas, inafront name. A luxurycondominiumfor salewaslocated atUnit
1401 Bridgepoint Oceanfront Condominiums, 334 Padre Blvd., South Padre Island, Texas. By
December, 1998, the negotiation was concluded for a purchaseprice of$450,000.00. This sum
waspaidinfullbytheendofApril,1999.TOMASYARRINGTONRUVALCABAtookcontrol
ofthisproperty,whichwastitledinthenameofaconspirator.
8. TOMASYARRINGTONRUVALCABAwasrequiredtopaymonthly
maintenance fees for Unit 1401, which by the year 2012 exceeded $900.00 per month. A
conspiratoradvancedsuchsumsonbehalfofTOMASYARRINGTONRUVALCABA,usingat
times accounts #xx0509 and #xx1010 established at Wells Fargo Bank and account #1814
established at Lone Star National Bank. These payments continued into March, 2012, with a
payment in the amount of$914.50. These payments includethe following, drawn on the above
notedaccounts:
Account#:xx0509
DateofCheck Check# Amountof Payment
September9,2005 1495 $920.00
October 10, 2005 1502 $920.00
November1 0, 2005 1507 $2093.37
December8,2005 1508 $920.00
January9, 2006 1512 $920.00
February 1, 2006 1,517 $1169.46
7 ---- -------------------
February,2006
March9, 2006
April7, 2006
May 10,2006
June9, 2006,
June 19, 2006
July10,2006
July 10,2006
August10,2006
September 11,2006
September27,2006
November27, 2006
January7,2007
January 10,2007
March7,2007
March31,2007
May9,2007
May24,2007
July5,2007
August8,2007
September1,2007
October4,2007
1518
1524
1529
1531
1534
1537
1542
1543
1545
1556
1562
1577
1584
1587
1594
1597
1601
1607
1614
1620
1623
1632
$10,812.50
$917.83
$943.28
$920.00
$1,256.73
$10,730.13
$914.62
$5,973.59
$950.00
$950.00
$2,220.18
$1,064.62
$974.16
$914.00
$1,399.77
$1,545.18
$1,089.41
$7,620.71
$2,077.58
$1,159.62
$1,019.04
$914.62
8
October29,2007
December5,2007
January 8,2008
February 10,2008
March,2008
March,2008
April5,.2008
May8, 2008
June9,_ 2008
July7, 2008
August9,2008
Auglist30,2008
September10,2008
November5,2008
December9,2008
January8,2009
February9, 2009
February26,2009
April9,2009
May9,2009
June6,2009
July8,2009
1634
1636
1644
1645
1647
1648
1650
1653
1655
1657
1665
1672
1669
1678
1682
1684
1686
1688
1693
1694
1699
1706
$936.78
$1,090.61
$1,009.87
$914.62
$914.62
$5,837.00
$935.00
$1,022.88
$992.83
$1,666.16
$914.00
$940.61
$915.24
$915.00
$1,064.24
$915.00
$914.00
$987.39
$915.00
$914.00
$915.00
$915.00
9
..
August8,2009 1708 $1,900.00
September6, 2009 1712 $1,408.03
October10,2009 1725 $915.00
November8, 2009 1746 $914.24
December10, 2009 1008 $1064.62
January6,2010 1018 $914.62
February 10,2010 1765 $3964.06
March8,2010 1766 $915.00
April10,2010 1769 $1,475.23
May6, 2010 1778 $914.62
July8,2010 1786 $1,200.70
July7,2010 1791 $1,850.86
August20,2010 1795 $1,850.86
September4,2010 1794 $2,163.11
October8, 2010 1797 $914.62
December5,2010 1800 $1,658.13
January11,2011 1804 $915.00
Account #xxlOlO
DateofCheck Check# AmountofPayment
February,2011 097 $1000.85
March10,2011 103 $915.00
May2,2011 105 $960.00
10
June8, 2011
July6, 2011
September10,2011
October9, 2011
November8,2011
December9,2011
January8, 2012
February5,2012
March28,2012
Account#xx1814
DateofCheck
November7,2010
April 10,2011
August10,2011
March3,2012
107
108
109
113
119
121
122
123
124
Check#
1004
1009
1023
1041
$978.23
$2023.04
$1000.14
$1236.59
$915.00
$1109.71
$944.94
$1471.84
$914.50
AmountofPaynlent
$1,209.01
$1,119.89
$914.62
$914.62
9. AdditionalcostswereincurredbyTOMASYARRINGTONRUVALCABAfor
the taxes, maintenance, upkeep, and repairs ofUnit 1401. Using funds on deposit under front
namesofco-conspirators,TOMASYAARINGTONRUVALCABAarrangedforthepaymentof
portions ofthese ongoing costs. Attimes, these costs were paidtoNapoleonRodriguezfrom a
frontaccountxx5217inthenameofaconspiratorsubtitledthe"HuntingAccount"as follows:
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Account#xx5217HuntingAccount
DateofCheck
August26, 2004
August26,2004
October 12,2006
December4,2007
December4, 2007
February26,2008
February26,2008
May7,2008
July8,2008
September25,2008
November11,2008
Check# AmountofPayment
506 $10,235.31
507 $1,283.09
535 $2,904.76
543 $9485.00
545 $1125.00
553 $3228.00
554 $5837.00
593 $1198.00
598 $1832.00
610 $1115.00
614 $2,440.00
10. Thepayments to TOMAS YARRINGTON RUVALCABA by drug traffickers
continued during his 6 yearterm ofoffice as governor (February, 1999 -December,2004) and
after. During this time period the Gulf Cartel illegally imported into the United States and
distributedmulti-tonquantitiesof cocaineandmarihuana.
11. Beginninginthelaterpartof2007andcontinuinginto2009TOMAS
YARRINGTON RUVALCABA became more directly involved with trafficking multi-ton
quantitiesofcocaine. TOMAS YARRINGTONRUVALCABA agreedwithrepresentatives of
the GulfCartel and the Beltran Leyva Cartel to arrange for unimpeded access for large cocaine
loadstothePortofVeracruz,Mexico,inexchangefor apercentageofeachload. Pursuantto this
12
agreement large quantities of cocaine were brought into Mexico via boat for trans-shipment into
the United States.
12. During the month of February, 2004, conspirators undertook a loan in the
approximate amount of $230,000.00 as fronts for TOMAS YARRINGTON RUVALCABA, to
enable his purchase ofwaterfront property on Windward Drive in Port Isabel, Texas. This loan was
later sold in approximately 2005 and payments were made in later years to M&T Bank.
13. As per the loan, the conspirators undertook to make monthly payments in the
amount of approximately $2,039.45.
14. During the latter part of2004 a conspirator who held high elected office in Nuevo
Laredo, Tamaulipas, Mexico, arranged to steal the equivalent ofapproximately 60 million pesos of
public funds in Mexico. In approximately December of2004, these funds were turned over to the.
control of TOMAS YARRINGTON RUVALCABA, who in tum entrusted them to a wealthy .
criminal. Portions of these stolen funds were then placed with other persons to help disguise
TOMAS YARRINGTON RUVALCABA's control over the funds and their illegal origin.
15. . TOMAS YARRINGTON RUVALCABA, assisted by a conspirator who served
as the Subsecretary for Egresos (expenditures) for the Mexican State of Tamaulipas, in the
administration ofTOMAS YARRINGTON RUVALCABA, directed in the disposition of such
stolen funds for TOMAS YARRINGTON RUVALCABA. On approximately January 21, 2005,
$300,000.00, representing a portion of these funds, was transferred to account xx7535 at Inter
National Bank. Such funds were used toward the purchase of a Sabreliner 60 airplane bearing a tail
number of XBULF for TOMAS YARRINGTON RUVALCABA. Following its purchase
TOMAS YARRINGTON RUVALCABA and other members of the conspiracy used the
13
Sabreliner60 airplaneextensively.
16. Duringthespringof2005,TOMASYARRINGTONRUVALCABAdirected
thatanotherportionofthestolenfunds, beingapproximately5millionpesos,bemadeavailableto
FERNANDO ALEJANDRO CANO MARTINEZ. Duringthe springof2005 and thereaftera
conspiratorcaused theincorporationoflimitedpartnershipsandlimitedliabilitycompaniesunder
Texaslaw.Suchentitieswereestablishedandusedasbusinessfrontssothattheownership,nature,
source, and control ofthe proceeds ofillegal activities could.not be determined easily. Said
conspirator and FERNANDO ALEJANDRO CANO MARTINEZthen used these entities to
applyfor fraudulentloansatbanksinthe SouthernDistrictofTexas.
17. In March of2005, a conspirator caused the formation ofPremier International
Holdings, Ltd., a limited partnership ("Premier"). The ge))eral partner ofPremier was AGM
Investments, LLC ("AGM"), formed by a conspirator in February, 2005. In December, 2005,
Premier, through a conspirator, applied for and received a loan from Inter National Bank in
McAllen, Texas, in the amount of$2,570,000.00 for the purchase ofa 2005 Pilatus airplane
having an FAA registration number of N679PE. FERNANDO ALEJANDRO CANO
MARTINEZpersonallyandunconditionallyguaranteedtheloan.
18. OnoraboutApril 15,2005,aconspiratorincorporatedPesqueraInvestmentsLP
("Pesquera"). The general partner and registered agent for Pesquera was RGC Development,
LLC,establishedonFebruary15,2005. OnaboutMay2,2005,aconspiratorandanotherperson
openedabankaccountfor PesqueraatFirstNationalBank, account# xxx0264.
19. OnoraboutMay6, 2005, aconspiratorwiredapproximately$406,387.00tothe
Pesquera account. In December of2005, Pesquera, through a conspirator, applied for and
14
r------------------------------------------------
received aloan from FirstNational Bank, loan#xxl806intheamountof$2,850,000.00for the
development of real estate in Cameron County, Texas. This loan was personally and
unconditionally guaranteed by FERNANDO ALEJANDRO CANO MARTINEZ. This loan
wentintodefaultandwaswrittenoffas abaddebtinMay, 2009,withan outstandingbalanceof
approximately$2,083,133.00.
20. In May of2005, a conspirator incorporated SPI Ling and Marlin Townhome
Project, LP ("SPI Ling"), and SPI Development Partners, LLC ("SPI Development"). SPI
DevelopmentwasthegeneralpartnerofSPILing.ThroughaconspiratorSPILingappliedforand
received a loan from Inter National Bank in McAllen, Texas, in the amount In
January, 2007, SPI Ling applied for a loan in the amount of$3,050,000.00 from Lone Star
National Bankin Pharr, Texas, for the developmentofreal estateonSouthPadreIsland, Texas.
FERNANDO ALEJANDRO CANO MARTINEZpersonally and unconditionally guaranteed
bothloans.
21. In December, 2005, a conspirator caused the formation of Cantera-Parkway
DevelopmentPartnersofSA,LP ("Cantera"); and SACanteraDevelopmentPartners,LLC("SA
Cantera"),whichbecamethegeneralpartnerCantera. InFebruary,2006,throughaconspirator,
Canteraapplied for andreceiveda loaninthe approximateamountof$6,650,000.00 from First
NationalBank,whoseprincipalofficesareinHidalgoCounty,Texas. Thesefundswereusedfor
the purchase ofapproximately 46 acres ofland.locatedin BexarCounty, Texas, in the Western
District of Texas. FERNANDO ALEJANDRO CANO MARTINEZ personally and
unconditionally signed as a guarantor of the loan. Further, through FERNANDO
ALEJANDROCANO MaterialesyConstruccionesVilladeAguajo,S.A.deC.V.
15
guaranteedtheloan.
22. In June of 2006, a conspirator caused the formation of Culebra 179 Acre
ResidentialDevelopment,LP (Culebra 179"), andinJuly, 2006, causedthe formationofCulebra
SA 179 Management LLC, which served as the general partner ofCulebra 179. Through a
conspirator,Culebra 179appliedforandreceivedaloanfromFalconInternationalBank, Laredo,
Texas,intheamountof$3,626,000towardthepurchaseofapproximately179acresoflandoffof
Culebra Road in Bexar County, in the Western District ofTexas. Culebra 179 completed the
purchase of this land in July, 2006. FERNANDO ALEJANDRO CANO MARTINEZ
personallyandunconditionallysignedas aguarantoroftheloan.
23. In August of2006 a conspirator caused the formation ofCulebra SA 104 Acres
ResidentialPartnership,LP("Culebra1 04")andCulebraSA104ManagementLLC,whichserved
as the general manager ofCulebra 104. Through a conspirator Culebra 104 applied for a loan
fromFalconInternationalBankintheamountof$2,874,000towardthepurchaseofapproximately
104 acres ofland offofCulebraRoad inBexarCounty. Culebra 104 completedthepurchase of
this land in August, 2006. FERNANDO ALEJANDRO CANO MARTINEZpersonally and
unconditionallysignedl;lS. aguarant.oroftheloan.
24. During the course ofthe conspiracy, a conspirator established various bank
accounts in the Republic ofMexico. These included accounts at HSBC, ScotiaBank, BBVA
Bai:J.comer, Banamex, and Banregio. From 2007 and continuing into 2009, tens ofmillions of
MexicanpesosweredepositedintotheseaccountsandthentransferredtoanaccountatMonex,a
moneytransmitter,inMexico.
25. Upon deposit at Monex, the funds were thentransferred to accounts held in the
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United States. These accounts included account xx6539 in the name ofPremier International
Holdings at Inter National Bank in McAllen, Texas. This account received such transfers in
dollarsfromMonexonoraboutthefollowingdates:
Date ApproximateAmount
June,2008 $99,272.55
September,2008 $99,850.00
December,2008 $147,492.63
March,2009 $100,000.00
June,2009 $50,000.00
July,2009 $49,272.55
26. In this same manner, funds were transferred by the conspirator from Monex to
accountxx2879 inthename ofCanteraParkway DevelopmentPartners ofSA at FirstNational
BanlcThisaccountreceivedsuchtransfersindollarsonoraboutthefollowingdates:
Date ApproximateAmount
June,2008 $3i5,000.00
July,2008 $100,000.00
August,2008 $100,000.00
September, 2008 $312,500.00
October,2008 $100,000.00
November, 2008 $100,000.00
December,2008 $240,000.00
February,2009 $50,000.00
17
April,2009 $270,000.00
May,2009 $45,000.00
July, 2009 $210,700.00
September,2009 $210,000.00
December,2009 $210,000.00
27. Otherpersons and entitiestransferredadditionalfunds intoaccountxx2879in the
name ofCanteraParkwayDevelopmentPartnersofSA atFirstNationalBank,Edinburg,Texas.
These additional transfersinto this account exceeded $1,500,000.00 andincludedtransfers from
Mexican companies bearing the names ofGMC S.A.de C.V. and Expide Technologia, S.A. de
c.v.
28. Another Cantera account was established at First National Bank in April, 2010,
bearing account# xx6734. From the time ofthe opening ofthis account through April, 2012,
transfersanddepositsintothisaccountexceeded$3,000,000.00.
29. A conspirator established accountxx6749 inthe name ofSPI Ling at Lone Star
NationalBankinPharr,Texas.InMayof2008,Monextransferred$100,000.00tothisaccount.
30. In addition to the transfers offunds from Monex in Mexico to accounts in the
names of entities in the United States whose loans FERNANDO ALEJANDRO CANO
MARTINEZhadguaranteed,therewereothertransfersof moneyintotheseaccounts.
31. TOMASYARRINGTONRUVALCABAandFERNANDOALEJANDRO
CANO MARTINEZ worked together and with others to acquire and hold real estate for
TOMAS YARRINGTON RUVALCABA in Mexico in a disguised manner so that TOMAS
YARRINGTON RUVALCABA's secret ownership of the real estate could not be easily
18
detected. The real estate included the Hacienda San Juan that was developed into an exclusive
huntingresortinthe StateofTamaulipas, Mexico.
32. Duringthecourse ofthis conspiracyFERNANDOALEJANDROCANO
MARTINEZwas the chiefexecutive officer and co-owner ofa construction firm Materiales y
Construcciones Villas de Aguayo, S.A de C.V. with its principal place ofbusiness in Ciudad
Victoria, Tamaulipas. This firm received significant public work contracts in the State of
TamaulipasduringTOMASYARRINGTONRUVALCABA'stermas governor.FERNANDO
ALEJANDRO CANO MARTINEZ in tum paid bribes to TOMAS YARRINGTON
RUVALCABA. The bribes includedthe acquisition ofranches and otherreal estate in Mexico
which FERNANDO ALEJANDRO CANO MARTINEZ acquired for TOMAS
YARRINGTONRUVALCABAusingfrontnames.
33. Startingin2004aconspiratorestablishedvariousbankaccountsatFirstNational
Bank, including accounts xx1407, xx9425, xx3621, xx5217, and xx1637. These accounts were
funded inpartfrom proceedsofassets ofTOMASYARRINGTONRUVALCABAheldunder
names otherthan his own. These accounts were used as fronts for the payment ofexpenses for
TOMAS YARRINGTON RUVALCABA, and for the acquisition and support ofassets in
nominee names in the United States. At times conspirators engaged in structured transactions
involving various ofthese accounts to evade the filing ofcurrency transaction reports with the
UnitedStates.
34. Such structuring included the issuance and use ofchecks by conspirators, and cash
withdrawals to conspirators, drawn on account xx5217 at First National Bank on or about the
followingdates:
19
Date Amount
January 28, 2008 $10,000.00
February 15, 2008 $10,000.00
February 15, 2008 $10,000.00
February 15, 2008 $10,000.00
February 29, 2008 $9,000.00
February 29, 2008 $9,000.00
March 6, 2008 - $9,000.00
March 6, 2008 $9,000.00
March 6, 2008 $10,000.00
March 7, 2008 $9,000.00
March 7, 2008 $9,000.00
March 10, 2008 $9,000.00
March 10,2008 $9,000;00
March 11, 2008 $9,000.00
March 11, 2008 $9,000.00
March 12, 2008 $9,000.00
March 12,2008 $9,000.00
March 12, 2008 $9,000.00
March 12,2008 $9,000.00
March 13,2008 $9,000.00
March 13, 2008 $9,000.00
20
March13,2008
March 13,2008
March27,2008
March27,2008
March31,2008
April9,2008
April 1 0,2008
April15,2008
Apri116,2008
April 18,2008
May2, 2008
May2,2008
May5,2008
May7, 2008
May7,2008
May8, 2008
August12,2008
August 13,2008
August29,2008
September2,2008
September11,2008
$9,000.00
$9,000.00
$5,000.00
$2,000.00
$5,000.00
$8,000.00
$8,500.00
$9,000.00
$5,000.00
$5,000.00
$6,000.00
$6,000.00
$6,000.00
$3,000.00
$9,000.00
$9,000.00
$5000.00
$8000.00
$8000.00
$9000.00
$9000.00
35a. Suchstructuringincludedthedepositof UnitedStatescurrencyintoaccount
21
xx2779openedinthenameof aconspiratoratFirstNationalBankonoraboutthefollowingdates:
Date
Amount
January20,2005 $9,200.00
January20, 2005
$10,000.00
January21,2005 $7,000.00
January25,2005 $10,000.00
January27, 2005 $10,000.00
March3,2005
$6,400.00
March4,2005
$8,000.00
April4, 2005
$7,700.00
April4, 2005
$9,500.00
April(i, 2005
$8,000.00
November22, 2005
$9,700.00
November5,2009
$9,500.00
November6, 2009
$3,000.00
November19,2009
$6,500.00
35b. Suchstructuringincludedtheissuanceanduseof checksbyconspirators,andcash
withdrawals by conspirators, drawn on account xx3621 at First National Bankon orabout the
followingdates:
Date
Amount
September5,2006
$8,000.00
October17, 2006
$8,000.00
22
October 19, 2006 $6,000.00
October 20, 2006 $6,000.00
November I, 2006 $9,000.00
November 3, 2006 $9,000.00
November 6, 2006 $9,000.00
November 10, 2006 $9,000.00
June 2, 2008 $9,000.00
June 2, 2008 . $9,000.00
June 3, 2008 $7,000.00
June II, 2008 $9,000.00
June I6, 2008 $6,000.00
June 23, 2008 $6,000.00
June 24, 2008 $5,000.00
June 24, 2008 $4,000.00
June 26, 2008
$8,000.00
July I1' 2008 $8,000.00
July I5, 2008 $8,000.00
July I6, 2008 .
$8,000.00
July 17, 2008 $8,000.00
July 22, 2008
$8,000.00
July 22, 2008 $9,000.00
July 23, 2008 $9,000.00
23
July25, 2008 $9,000.00
July25, 2008 $9,000.00
July25,2008 $9,000.00
July29,2008 $6,000.00
July31, 2008 $9,000.00
August 1, 2008 $9,000.00
August4, 2008 $9,000.00
August4, 2008 $9,000.00
August5,2008 $4,500.00
August25,2010 $8,000.00
September22,2010 $8,000.00
36. Startingin2005andthereafter, landsacquiredinthenamesofconspiratorsin
Mexico were pledged as collateral for bank loans from First National Bank. Portions ofthe
proceeds ofthese loans were thenused to acquire additionalranch land in Mexico for TOMAS
YARRINGTONRUVALCABAalongwithlandintheUnitedStates.
37. TOMASYARRINGTONRUVALCABAa.I,so causedanddirectedthat
fraudulentloansbeestablishedto acquirefinancingforthepurchaseofresidencesinTexasand a
2007 Chevrolet Suburban. Pursuantto such directions and agreements, aloanwas appliedfor at
First National Bank, loan #xx0316, in approximately July of 2004 in the initial amount of
$200,000.00, and renewed thereafter, for the construction ofa residence to be titled in a front
name.ThedocumentssubmittedtoFirstNationalBankcontainedfalsestatements.
38. Duringthe springof2008TOMASYARRINGTONRUVALCABAcausedand
24
directed that a loan be established at First National Bank, loan #xx5587, in the amount of
$150,000.00 for the purchase ofa residence to be titled in a front name. The total amount
investedintheacquisitionandfurnishing ofbothresidencesexceeded$750,000.00.
39. In December of 2006 TOMAS YARRINGTON RUVALCABA caused and
directed that a loan to be established at Capital One Finance, in the amount ofapproximately
$34,889.63 forthepurchaseofa2007ChevroletSuburban.
Violation:Title18,UnitedStatesCode,Section 1962(d)
COUNTTWO
Thatfrom onoraboutJanuary 1, 1998,up the dateofthereturnofthisindictment,inthe
SouthernDistrictof Texasandelsewhere,and inthejurisdictionofthisCourttheDefendant
TOMASYARRINGTONRUVALCABA
didknowinglycombine, conspire, confederate,and agree withdiverse otherpersonsknownand
unknownto the GrandJurytocommitoffensesagainsttheUnitedStatesinviolationofTitle21,
UnitedStatesCo_de, Section959,to-wit: to distributecontrolledsubstancesunderscheduleI and
schedule II, knowing that such substances will be unlawfully imported into the United States.
The amountinvolvedintheconspiracyexceeded?kilogramsofcocaineand 1 ,000kilogramsof
marihuana.
Violation: Title21,UnitedStatesCode,Section963
coUNTTHREE
Thatfrom onoraboutJanuary 1, 1998,uptothedateofthereturnofthisindictment,in
the SouthernDistrictofTexasandelsewhere,andinthejurisdictionof thisCourttheDefendants
TOMASYARRINGTONRUVALCABA
and
25
FERNANDOALEJANDROCANOMARTINEZ
didknowiilglycombine,conspire, confederate,andagreetogetherandwithdiverseotherpersons
known and unknowntothe Grand Jury to commitoffensesagainstthe UnitedStatesin violation
ofTitle 18, UnitedStatesCode,Section1956,to-wit:
a) totransport, transmit, andtransfer, and attempttotransport, transmit, andtransfermonetary
instruments and funds involving the proceeds ofspecified unlawful activity to a place in the
United States from or through a place outside the United States, knowing that the monetary
instruments and funds involved in the transportation, transmission, and transfer represented the
proceeds ofsome form ofunlawful activity andknowing that such transportation, transmission,
and transfer was designed in whole or in part to conceal and disguise the nature, location,
source,ownership,andcontrolof theproceedsofspecifiedunlawfulactivity,inviolationofTitle
18,UnitedStatesCode,Section1956(a)(2)(B)(I),and
b) to conductandattempttoconductfmancialtransactionswhichinfactinvolvetheproceedsof
specifiedunlawfulactivity,knowingthatthepropertyinvolvedinthetransactionsrepresentsthe
proceeds ofsome form ofunlawful activity and knowing that the transaction was designed in
.wholeorinparttoconcealanddisguisethenature,location,source, andC()ntrol of the
proceeds ofspecified unlawful activity, in violation ofTitle 18 United States Code, Section
1956(a)(l)(B)(i),and
c) to avoidatransactionreportingrequirementunderFederallawinviolationofTitle 18 United
StatesCode,Section1956(a)(l)(B)(ii).
MeansandManner
It was apartofthis conspiracythatconspiratorswouldestablishlimitedpartnershipsand
26
limitedliabilitycompaniesunderTexaslaw.
It wasapartof thisconspiracythatconspiratorswouldestablishbankaccountsintheirown
namesandinthenamesof thelimitedpartnershipsandlimitedliabilitycompaniestoreceive,hold,
anddisbursefunds.
It was a part ofthis conspiracythatfunds wouldbetransmittedbywire and othermeans
betweenMexicoandtheUnitedStates.
It was a part ofthis conspiracy that such business entities and individual conspirators
wouldapplyfor loansfrom Texasba.D.ks andelsewhereandwouldpurchaseassetstobetitledin
frontnames.
Itwasapartofthisconspiracythatpersonswouldreceive,hold,andtransferlargeamounts
ofUnitedStatescurrency.
It wasapartofthisconspiracythatsuchbusinessentitiesandindividualpersonswouldact
as fronts, strawmen,and"prestanombres"[literally, 'lentnames'] forthetrueownersoftheassets.
Violation:Title 18,UnitedStatesCode,Section1956(h).
COUNT FOUR
ThatfromonoraboutJanuary.1, ~ 0 0 4 uptothedateof thereturnof thisindictment,inthe
SouthernDistrictof Texasandelsewhere,andinthejurisdictionof thisCourttheDefendants
TOMASYAErnrrNGTONRUVALCABA
and
FERNANDO ALEJANDRO CANO MARTINEZ
didknowinglycombine, conspire, confederate,andagreetogetherandwithdiverseotherpersons
knownandunknowntotheGrandJurytocommitoffensesagainsttheUnitedStatesinviolationof
Title 18, United States Code, Section 1014, to-wit: to knowingly make false statements to
27
institutions, the deposits ofwhich are insured by the Federal Deposit Insurance Corporation, for
the purpose ofinfluencing the actions ofsaid institutions upon application for and extension of
loans.
OVERTACTS
Pursuanttothis conspiracy and in furtherance thereof, the following and otherovertacts
were committedinthe SouthernDistrictofTexas and elsewhere:
1. Duringtheyear2004TOMASYARRINGTONRUVALCABAcausedand
directedthataloanbesoughtatFirstNationalBank,fortheconstructionofaresidenceto betitled
inafrontnameinHidalgoCounty,Texas.Theloanwasgrantedunderloannumberxx0316inthe
original amountof $200,000.00andwaslaterextendedbytheFirstNationalBanlc
2. Aspartoftheloanprocessfinancial informationwaspresentedtothebank.
3. Startinginthe springof2005andthereafteraconspiratorcausedtheincorporation
oflimited partnerships and limited liability companies under Texas law. Such companies were
established and used as business fronts so thatthe ownership, nature, source, and control ofthe
proceeds ofillegal activities couldnot easilybe determined. Saidconspiratorand FERNANDO
ALEJANDRO CANO MARTINEZ then used these entities to apply for fraudulent loans at
banksintheSouthernDistrictofTexas.
4. InMarch, 2005,aconspiratorcausedtheformationofPremierInternational
Holdings, Ltd., a limited partnership ("Premier"). The general partner ofPremier was AGM,
formed bya conspiratorinFebruary, 2005. In December, 2005, Premier, through a conspirator,
applied for and received a loan from InterNational Bank in McAllen, Texas, in the amount of
$2,570,000.00for thepurchaseofa2005 Pilatus airplanehaving an FAAregistrationnumberof
28
N679PE. FERNANDO ALEJANDRO CANO MARTINEZ personally and unconditionally
guaranteedtheloan.
5. In April of2005, FERNANDO ALEJANDRO CANO MARTINEZ, with the
assistanceof conspirators,causedtheformationofPesqueraInvestmentsLP,alimitedpartnership.
The general partner ofPesquera was RGC Development, LLC. Thereafter, in December, 2005,
Pesqueraappliedforandreceivedaloanfrom FirstNationalBankintheamountof$2,850,000.00.
6. InMay,2005, aconspiratorincorporatedSPI Lingand MarlinTownhomeProject,
LP ("SPI Ling"), and SPIDevelopmentPartners, LLC ("SPI Development"). SPI Development
was the generalpartnerofSPI Ling. Through aconspiratorSPI Ling applied for and received a
loan from Inter National Bank in McAllen, Texas in the amount of$610,000.00. In January,
2007,SPILingappliedforaloanintheamountof$3,050,000.00fromLoneStarNationalBankin
Pharr, Texas, for the development ofreal estate on South Padre Island, Texas. FERNANDO
ALEJANDROCANOMARTINEZpersonallyandunconditionallyguaranteedbothloans.
7. In December, 2005, a conspirator caused the formation of Cantera-Parkway
DevelopmentPartners ofSA, LP ("Cantera"), and SA CanteraDevelopmentPartners, LLC ("SA
Cantera"), which became the general partner of Cantera. In February, 2006, through a
conspirator, Canteraappliedfor andreceived aloanintheapproximate amountof$6,650,000.00
from First National Bank, whose principal offices are in Hidalgo County, Texas. These funds
wereused forthepurchaseofapproximately46 acres oflandlocatedinBexarCounty, Texas,in
the Western District ofTexas. FERNANDO ALEJANDRO CANO MARTINEZpersonally
and unconditionally signed as a guarantor of the loan. Further, through FERNANDO
ALEJANDROCANOMARTINEZ,MaterialesyConstruccionesVillade Aguajo,S.A.deC.V.
29
guaranteed the loan.
8. In June,2006, aconspiratorcausedtheformation ofCulebra 179AcreResidential
Development, LP (Culebra 179"), and in July, 2006, caused the formation ofCulebra SA 179
Management LLC, which served as the general partner ofCulebra 179. Through aconspirator,
Culebra 179 applied for and received a loan in the amount of$3,626,000.00 from Falcon
InternationalBank,Laredo,Texas,towardthepurchaseofapproximately179acresoflandoffof
Culebra Road in Bexar County, in the Western District ofTexas. Culebra 179 completed the
purchase of this land in July, 2006. FERNANDO ALEJANDRO CANO MARTINEZ
personallyand unconditionallysignedas aguarantoroftheloan.
9. In August of2006 a conspirator caused the formation ofCulebra SA 104 Acres
ResidentialPartnership,LP("Culebra1 04")andCulebraSA 104ManagementLLC,whichserved
asthe generalmanagerofCulebra 104. ThroughaconspiratorCulebra104appliedforaloanin
the amount. of $2,874,000.00 from Falcon International Bank toward the purchase of
approximately 104acresoflandoffofCulebraRoadinBexarCounty.Culebra104completedthe
purchase ofthis land in August, 2006. FERNANDO ALEJANDRO CANO MARTINEZ
personallyandunconditionallysignedas aguarantoroftheloan.
..
10. During approximately 2007 TOMAS YARRINGTON RUVALCABA became
concernedabouthisassetsthatwere "parked" underthecontrol ofFERNANDOALEJANDRO
CANO MARTINEZ. TOMAS YARRINGTON RUVALCABA's concern was that due to
FERNANDO ALEJANDRO CANO MARTINEZ' marital problems, TOMAS
YARRINGTON RUVALCABA could lose such assets. TOMAS YARRINGTON
RUVALCABA voiced these concerns. In 2007 and thereafter FERNANDO ALEJANDRO
30
CANO MARTINEZand others unde1iook to insulate assets underthe control ofFERNANDO
ALEJANDROCANOMARTINEZfrom lossinadivorceaction.
11. During the course of the conspiracy, a conspirator established vanous bank
accounts in the Republic ofMexico. These included accounts at HSBC, Scotia Bank, BBVA
Bancomer, Banamex, and Banregio. From 2007 and continuing into 2009, tens ofmillions of
Mexicanpesosweredepositedintotheseaccountsandthentransferredto an accountatMonex,a
moneytransmitter,inMexico.
12. Upon deposit at Monex, the funds were then transferred to accounts held in the
United States. These accounts included account xx6539 in the name ofPremier International
Holdings at Inter National Bank in McAllen, Texas. This account received such transfers in
dollars fromMonex asfollows:
Date ApproximateAmount
June,2008 $99,272.55
September,2008 $99,850.00
December, 2008 $147,492.63
March, 2009 $100,000.00
June,2009 $50,000.00
July, 2009 $49,272.55
13. Inthissamemanner,funds weretransferredbytheunindictedco-conspiratorfrom
Monex to accountxx2879 in thenameofCanteraParkwayDevelopmentPartnersofSA at First
NationalBank.Thisaccountreceivedsuchtransfersin dollars as follows:
ApproximateAmount
31
June,2008 $315,000.00
July, 2008 $100,000.00
August,2008 $100,000.00
September,2008 $312,500.00
October, 2008 $100,000.00
November, 2008 $100,000:00
December,2008 $240,000.00
February,2009 $50,000.00
April,2009 $270,000.00
May,2009 $45,000.00
July,2009 $210,700.00
September,2009 $210,000.00
December,2009 $210,000.00
14. Otherpersonsandentitiestransferredadditionalfundsintoaccountxx2879inthe
nameofCanteraParkwayDevelopmentPartnersofSAat FirstNational Bank,Edinburg,Texas.
Theseadditional transfersintothis accountexceeded$1,500,000.00 and includedtransfers from
Mexican companies bearing the names ofGMC S.A.de C.V. and Expide Technologia; S.A. de
C.V.
15. Another Cantera account WB$ established at First National Bank in April, 2010,
bearing account# xx6734. From the time ofthe opening ofthis account through April, 2012,
transfersanddepositsintothisaccountexceeded$3,000,000.00.
16. A conspirator established account xx6749 inthe name ofSPI Ling at Lone Star
32
National Bank in Pharr, Texas. In May of2008, Monex transferred $100,000.00 to this account.
17. In addition to the transfers of funds from Monex in Mexico to accounts in the
names of entities in the United States whose loans FERNANDO ALEJANDRO CANO
MARTINEZ had guaranteed, there were other transfers of money into these accounts.
18. During the spring of2008 TOMAS YARRINGTON RUVALCABA caused and
directed that a loan be established at First National Bank, loan #xx5587, in the amount of
$150,000.00 for the purchase of a residence to be titled in a front name.
Violation: Title 18, United States Code, Section 371.
COUNT FIVE
That from on or about January 1, 2004, up to the date of the return of this indictment, in the
Southern District of Texas and elsewhere, and in the jurisdiction of this Court the Defendants
TOMAS YARRINGTON RUVALCABA
..
and
FERNANDO ALEJANDRO CANO MARTINEZ
did knowingly combine, conspire, confederate, and agree together and with diverse other
persons known and unknown to the Grand Jury to commit offenses against the United States in
violation of Title 18, United States Code, Section 1344, to-wit: to knowingly execute and attempt
. . .. .
to execute a scheme and artifice to obtain moneys, funds, credits, and assets owned by and under
the custody of financial institutions, the deposits of which were insured by the Federal Deposit
Insurance Corporation, by mean of false and fraudulent pretenses, representations and promises.
Violation: Title 18, United States Code, Section 1349.
COUNT SIX
That in or about December, 2005, in the Southern District of Texas and elsewhere, and in
33
thejurisdictionofthisCourttheDefendant
FERNANDOALEJANDROCANOMARTINEZ
knowingly executed and attempted to execute a scheme and artifice to obtain moneys, funds,
credits, andassets ownedby andunderthecustodyofafinancial institution,InterNationalBank,
the.deposits ofwhich were insured by the Federal Deposit Insurance Corporation, bymeans of
false andfraudulentpretenses,representationsandpromises,inconnectionwithaloanapplication
inthenameofPremierInternationalHoldings,Ltd. for$2,570,000.00.
Violation:Title 18,UnitedStatesCode,Sections 1344and2.
COUNTSEVEN
Thatin aboutFebruary,2006, inthe SouthernDistrictofTexasandelsewhere, andinthe
jurisdictionofthisCourttheDefendant
FERNANDOALEJANDROCANOMARTINEZ
knowingly executed and attempted to execute a scheme and artifice to obtain moneys, funds,
credits,andassets ownedby andunderthecustodyof afinancial institution,FirstNationalBank,
the deposits ofwhichwere insured by the Federal DepositInsurance Corporation, by means of
false andfraudulentpretenses,representationsandpromises,inconnectionwithaloanapplication
inthenameofCantera-ParkwayDevelopmentPartnersofSA,LPfor$6,650,000.00
Violation:Title 18,UnitedStatesCode,Sections 1344and2.
COUNTEIGHT
That in about July, 2004, in the Southern District ofTexas and elsewhere, and in the
jurisdictionofthis CourttheDefendant
TOMASYARRINGTONRUVALCABA
34
knowingly executed and attempted to execute a scheme and artifice to obtain moneys, funds,
credits, andassets ownedbyandunderthe custodyofafinancial institution, FirstNationalBank,
the deposits ofwhich were insured by the Federal Deposit Insurance Corporation, bymeans of
falseandfraudulentpretenses,representationsandpromises,inconnectionwithaloanapplication
#xx0316inthe approximateamountof$200,000.00
Violation:Title 18, UnitedStatesCode, Sections 1344and2.
COUNTNINE
Thatin about January, 2007,inthe SouthernDistrictofTexas and elsewhere, andin the
jurisdictionofthisCourttheDefendant
FERNANDOALEJANDROCANOMARTINEZ
knowingly executed and attempted to execute a scheme and artifice to obtain moneys, funds,
credits, andassets ownedbyandunderthecustodyofafinancial institution, Lone StarNational
Bank,thedepositsof whichwereinsuredbytheFederalDepositInsuranceCorporation,bymeans
of false and fraudulent pretenses, representations and promises, in connection with a loan
applicationinthenameofSPILingandMarlinTownhomeProject,LP for$3,050,000.00
Violation:Title 18,UnitedStatesCode,Sections 1344and2.
COUNTTEN
That in about April, 2008, in the Southern District ofTexas and elsewhere, and in the
jUrisdictionofthisCourttheDefendant
TOMASYARRINGTONRUVALCABA
knowingly executed and attempted to execute a scheme and artifice to obtain moneys, funds,
credits,andassetsownedbyandunderthe custodyofafinancial institution,FirstNational Bank,
35

the deposits ofwhich were insured bythe Federal Deposit Insurance Corporation, by means of
falseandfraudulentpretenses,representationsandpromises,inconnectionwithaloanapplication
forloan#xx5587intheapproximateamountof$150,000.00.
Violation:Title18,UnitedStatesCode,Sections1344and2
.COUNTELEVEN
ThatfromonoraboutJanuary 1, 2005,uptoonoraboutJanuary 1,~ 0 1 2 intheSouthern
Districtof Texasandelsewhere,andinthejurisdictionof thisCourttheDefendant
TOMASYAJUUNGTONRUVALCABA
did knowingly combine, conspire, confederate, and agree together and with diverse other
persons known andunknownto the GrandJuryto commit offenses against the United States in
violation ofTitle 31, United States Code, Section 5:324, to-wit: to cause orattempt to cause a
domesticfinancial institutiontofailtofile arequiredreport.
OVERTACTS
Pursuanttothisconspiracyandinfurtherancethereof,thefollowingandotherovertacts
werecommittedintheSouthernDistrictof Texasandelsewhere:
1. Duringtlle course ofthis conspiracythe conspirators made us_e ofchecks inthe
amountof$10,000.00 andless, apracticereferredto as "structuring."Suchstructuringincluded
theissuanceanduseofchecks byconspirators, andcashwithdrawals byconspirators, drawnon
accountxx5217atFirstNationalBankoraboutthefollowingdates:
Date Amount
January28,2008
$10,000.00
February 15,2008
$10,000.00
36
February I5, 2008 $10,000.00
February I5, 2008
February 29, 2008
February 29, 2008
March 6, 2008
March 6, 2008
March 6, 2008
March 7, 2008
March 7, 2008
March I 0, 2008
March I 0, 2008
. March I1, 2008
March I1, 2008
March I2, 2008
March I2, 2008
March 12, 2008
March I2, 2008
March I3, 2008
March 13, 2008
March 13, 2008
March 13, 2008
March 27, 2008
$I 0,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$IO,OOO.OO
$9,000.00
$9,000.00
9 , o o o ~ o o
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$5,000.00
37
....
March27,2008 $2,000.00
March31,2008 $5,000.00
April 9, 2008 $8,000.00
April 10,2008 $8,500.00
April 15,2008 $9,000.00
April 16,2008 . $5,000.00
April 18,2008 $5,000.00
May2, 2008 $6,000.00
May2,2008 $6,000.00
May5,2008 $6,000.00
May7,2008 $3,000.00
May7, 2008 $9,000.00
May8, 2008 $9,000.00
August12,2008 $5000.00
August 13,2008 $8000.00
August29,2008 $8000.00
September2,2008 $9000.00
September11,2008 $9000.00
2. One or more conspirators deposited and caused the deposit ofthe following
amounts ofUnited States currencyinto account #xx2779 atFirstNational Bankon or aboutthe
followingdates:
Amount
38
January20,2005 $9,200.00
January20,2005 $10,000.00
January21,2005 $7,000.00
January25,2005 $10,000.00
January27,2005 $10,000.00
March3, 2005 $6,400.00
March4, 2005 $8,000.00
April4, 2005 $7,700.00
April4,2005 $9,500.00
April6, 2005 $8,000.00
November22,2005 $9,700.00
November5,2009 $9,500.00
November6,2009 $3,000.00
November19,2009 $6,500.00
3. Su_chstructuringincludedtheissuanceanduseofchecksbyconspirators,andcash
withdrawals by conspirators, drawn on account xx3621 at FirstNational Bank on or about the
followingdates:
Date Amount
September5,2006 $8,000.00
October17,2006 $8,000.00 .
October19,2006 $6,000.00
October20,2006 $6,000.00
39
,----------------------------
November 1, 2006
November 3, 2006
November 6, 2006
November 10, 2006
June 2, 2008
June 2, 2008
June 3, 2008
June 11, 2008
June 16, 2008
June 23, 2008
June 24, 2008
June 24, 2008
June 26, 2008
July 11, 2008
July 15, 2008
July 16, 2008
July 17, 2008
July 22, 2008
July 22, 2008
July 23, 2008
July 25, 2008
July 25, 2008
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$7,000.00
$9,000.00
$6,000.00
$6,000.00
$5,000.00
$4,000.00
$8,00.0.00
$8,000.00
$8,000.00
$8,000.00
$8,000.00
$8,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
40
...
July25, 2008 $9,000.00
July29, 2008 $6,000.00
July31, 2008 $9,000.00
August 1, 2008 $9,000.00
August4, 2008 $9,000.00
August4, 2008 $9,000.00
August5, 2008 $4,500.00
August25,2010 $8,000.00
September22,2010 $8,000.00
4. During the course ofthis conspiracy large amounts ofUnited States currency were
transferredbetweenand amongvariousconspirators.
Violation: Title 18, UnitedStatesCode, Section371.
NOTICESOFFORFEITURE
NOTICEOFFORFEITUREPURSUANTTO
TITLE18,UNITEDSTATESCODE,SECTION1963
1. The allegations contained in Count One are hereby realleged and incorporated by
reference forthepurposeofallegingforfeitures pursuantto Title 18, UnitedStatesCode, Section
1963.
2. The United States of America gives notice to the defendants, TOMAS
YARRINGTONRUVALCABAandFERNANDOALEJANDROCANOMARTINEZ,that,
upon conviction ofan offense in violation ofTitle 18, United States Code, Section 1962 and
pursuanttoTitle 18,UnitedStatesCode, Section 1963,theUnitedStatesofAmericashallforfeit,
irrespectiveofanyprovisionofstatelaw:
41
a. any interest acquired ormaintained in violation ofTitle 18, United States
Code, Section 1962;
b. any interestin,securityof,claimagainst,orpropertyorcontractualrightof
any kind affording a source ofinfluence over, any enterprise which the
defendants established, operated, controlled, conducted, or participated in
theconductof, inviolationofTitle18,UnitedStatesCode,Section1962;
c. any propertyconstituting,orderivedfrom, anyproceedsobtained, directly
or indirectly, from racketeering activity or unlawful debt collection in
violationofTitle 18,"UnitedStatesCode, Section 1962.
3. Thepropertyto be forfeitedincludes,butis.notlimitedto,thefollowing:
a. 2005 Pilatusaircraft,with all engines and equipmentattachedthereto, and
all logs and documents containedtherein, saidaircraftbearingtailnumber
N679PE;
b. 46.175 acre tract ofland, more or less, located in Bexar County, Texas,
moreparticularlydescribedas:
TRACT1: That certain 46.175 acre tract of land being all of that
conveyed in Special Warranty Deed to Tally-Ho Venture, Ltd., recorded
inVolume 11819,Pages 1848-1856oftheOfficialPublicRecordsofReal
Property ofBexar County, Texas, out ofthe Charles S. Seidenschnur
Survey No. 410, Abstract 1222, County Block 4725 ofBexar County,
Texas, now in New City Blocks 14859 and 34725 ofthe City ofSan
Antonio, Bexar County, Texas, SAVE AND EXCEPTthat certain 1.00
acre, or43,577squarefeetmoreorlesstractofland;and
TRACT2: An easementtoTract1, said easementbeing0.1383 acres,
and being 16 feet wide, created, granted and described by Sanitary Sewer
EasementAgreementbyandbetweenLaCanteraDevelopmentCompany,
as grantor, and Camp Bullis, Ltd., as grantee, dated July 29, 2003,
recorded in Volume 10189, Page 1718, Official Public Records ofReal
PropertyofBexarCounty,Texas,
c. A residence on Windward Drive, Port Isabel, Tex:as, more particularly
described as: Lot One (1), Block One (1), RACE SUBDNISION,Cityof
PortIsabel, CameronCoi.mty, Texas, accordingto theMapor Platthereof
recorded in Cabinet 1, Slot 1681-B, Map Records ofCameron County,
Texas.
d. A forfeiture money judgment m the approximate amount of
42
$50,000,000.00 for which the defendants may be jointly and severally
liable.
4. Ifany ofthe property described above, as a result ofany act or omission ofthe
defendants:
a. cannotbelocateduponthe exerciseofduediligence;
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
c. hasbeenplacedbeyondthejurisdictionof thecourt;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwithotherpropertywhichcannotbedividedwithout
difficulty;
theUnitedStatesofAmericashallbeentitledtoforfeiture ofsubstitutepropertypursuanttoTitle
18,UnitedStatesCode,Section1963(m).
NOTICEOFFORFEITUREPURSUANTTO
TITLE21,UNITEDSTATESCODE,SECTIONS970AND853
1. The allegations contained in Count Two are hereby realleged and incorporated by
referenceforthepurposeofallegingforfeiturespursuanttoTitle21,UnitedStatesCode, Section
970whichincorporatesTitle21,UnitedStatesCode, Section853.
2. The United States of America gives notice to the defendant, TOMAS
YARRINGTON RUVALCABA,that,upon conviction ofan offense in violation ofTitle 21,
United StatesCode, Section963, andpursuantto Title 18, United States Code, Section 853, the
UnitedStatesof Americashrulforfeit:
a. anypropertyconstituting,orderivedfrom, anyproceedsobtained, directly
orindirectly,astheresultofsuchviolation;and
b. anypropertyused,orintendedtobeused,inanymannerorpart,to commit,
orto facilitatethecommissionof, suchviolation.
43
3. Thepropertytobeforfeitedincludes,butisnotlimitedto,thefollowing:
a. 2005 Pilatusaircraft, withall enginesand equipmentattached thereto, and
all logsanddocuments containedtherein, said aircraftbearingtail number
N679PE;
b. 46.175 acre tract ofland, more or less, located in Bexar County, Texas,
moreparticularlydescribedas:
TRACT 1: That certain 46.175 acre tract of land being all of that
conveyed in Special Warranty Deed to Tally-Ho Venture, Ltd., recorded
inVolume 11819,Pages 1848-1856oftheOfficial PublicRecordsofReal
Property ofBexar County, Texas, out ofthe Charles S. Seidenschnur
Survey No. 410, Abstract 1222, County Block 4725 ofBexar County,
Texas, now in New City Blocks 14859 and 34725 ofthe City of San
Antonio, Bexar County, Texas, SAVE AND EXCEPTthat certain 1.00
acre, or43,577squarefeetmoreorlesstractofland;and
TRACT 2: Aneasementto Tract 1, said easementbeing0.1383 acres,
and being 16 feet wide, created, granted and described by Sanitary Sewer
EasementAgreementbyand betweenLaCanteraDevelopmentCompany,
as grantor, and Camp Bullis, Ltd., as grantee, dated July 29, 2003,
recorded in Volume 10189, Page 1718, Official Public Records ofReal
Propertyof BexarCounty,Texas,
c. A residence on Windward Drive, Port Isabel, Texas, more particularly
described as: LotOne(1),BlockOne(1), RACE SUBDIVISION, Cityof
PortIsabel, CameronCounty, Texas,accordingtotheMap or.Platthereof
recorded in Cabinet 1, Slot 1681-B, Map Records ofCameron County,
Texas.
d. A forfeiture money judgment in the approximate amount of $
$50,000,000.00 for which the defendants may be jointly and severally
liable.
4. Ifany ofthe property described above, as a result ofany act or omission ofthe
defendant:
a. cannotbelocatedupontheexerciseof duediligence;
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
44
c. hasbeenplacedbeyondthejurisdictionofthe court;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwith otherpropertywhichcannotbedividedwithout
difficulty;
theUnitedStatesofAmericashall be entitledto forfeiture ofsubstitutepropertypursuantto Title
21,UnitedStatesCode, Section 853(p).
NOTICEOFFORFEITUREPURSUANTTO
TITLE18,UNITEDSTATESCODE,SECTIONS981 AND982,AND
TITLE28,UNITEDSTATESCODE,SECTION2461
1. The allegations contained in CountThree are hereby realleged and incorporatedby
reference for the purpose of alleging forfeitures pursuant to Title 18, United States Code,
Sections 981(a)(l)(C) and Title 28, United States Code, Section 2461 in addition to Title 18,
UnitedStatesCode,Section982(a)(1).
2. The United States of America gives notice to the defendants, TOMAS
YARRINGTONRUVALCABAandFERNANDOALEJANDROCANOMARTINEZ,that,
upon conviction ofan offense in violation ofTitle 18, United States Code, Section 1956 and
pursuantto Title 18, United States Code, Section98l(a)(l)(C)and Title 28, United States Code,
Section 2461, the United States ofAmerica shall forfeit any property, real or personal, which
constitutes oris derived from proceeds traceable to aviolation ofTitle 18, United States Code,
Section 1956,or aconspiracyto commitsuchoffense.
3. The United States of America gives notice to the defendants, TOMAS
YARRINGTONRUVALCABA and FERNANDOALEJANDROCANOMARTINEZ,that,
upon conviction ofan offense in violation ofTitle 18, United States Code, Section 1956 and
pursuant to Title 18, United States Code, Section 982(a)(l), the United States ofAmerica shall
45
forfeit anyproperty,real orpersonal,involvedin such offense, or any property traceable to such
property.
4. Thepropertytobeforfeitedincludes,butisnotlimitedto,thefollowing:
a. 2005 Pilatusaircraft, withall enginesand equipmentattachedthereto,and
all logs and documents containedtherein, saidaircraftbearingtail number
N679PE;
b. 46.175 acre tract ofland, more or less, located in Bexar County, Texas,
moreparticularlydescribedas:
TRACT1: That certain 46.175 acre tract of land being all ofthat
conveyed in Special Warranty Deed to Tally-Ho Venture, Ltd., recorded
inVolume 11819,Pages 1848-1856oftheOfficialPublicRecordsofReal
Property ofBexar County, Texas, out ofthe Charles S. Seidenschnur
Survey No. 410, Abstract 1222, County Block 4725 ofBexar County,
Texas, now in New City Blocks 14859 and 34725 ofthe City ofSan
Antonio, Bexar County, Texas, SAVE AND EXCEPT that certain 1.00
acre,or43,577squarefeetmoreorlesstractofland;and
TRACT2: An easementto Tract 1, said easementbeing 0.1383 acres,
and being 16 feet wide, created, granted. and describedby Sarutary Sewer
EasementAgreementby and betweenLaCanteraDevelopmentCompany,
as grantor, and Camp Bullis, Ltd., as grantee, dated July 29, 2003,
recorded in Volume 1 0189, Page 1718, Official Public Records ofReal
PropertyofBexarCounty,Texas,
c. A residence on Windward Drive, Port Isabel, Texas, more particularly
describedas: Lot One (1), BlockOne(l),RACESUBDIVISION, Cityof.
PortIsabel, CameronCounty, Texas, accordingto theMaporPlatthereof
recorded in Cabinet 1, Slot 1681-B, Map Records ofCameron County,
Texas.
d. A forfeiture :rJ?.Oney judgment in the approximate amount of
$24,000,000.00 for which the defendants may be jointly and severally
liable.
5. ~ any ofthe property described above, as a result ofany act or omission ofthe
defendant:
a. cannotbelocatedupontheexerciseofdue diligence;
46
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
c. hasbeenplacedbeyondthejurisdictionofthecourt;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwithotherpropertywhichcannotbe dividedwithout
difficulty;
theUnitedStatesofAmericashallbeentitledto forfeitureofsubstitutepropertypursuanttoTitle
21,UnitedStatesCode, Section853(p).
NOTICEOFFORFEITUREPURSUANTTO
TITLE18,UNITEDSTATESCODE,SECTION982
1. The allegations contained in Counts Four and Five are hereby realleged and
incorporated by reference for the purpose ofalleging forfeitures pursuant to Title 18, United
StatesCode,Section982(a)(2)(A).
2. The United States of America gtves notice to the defendants, TOMAS
YARRINGTONRUVALCABAandFERNANDOALEJANDROCANOMARTINEZ,that,
upon conviction ofan offense in violation ofTitle 18, United States Code, Sections 1014 or
1344, or a conspiracy to violate such sections and pursuant to Title 18, United States Code,
Section Q82(a)(2)(A), the United States .of America shall forfeit any property constituting, or
derivedfrom,proceedsobtaineddirectly.orindirectly,astheresultofsuchviolation.
. 3. Thepropertytobeforfeitedincludes,butisnotlimitedto,thefollowing:
a. 2005 Pilatusaircraft,withall enginesand equipmentattachedthereto,and
all logsanddocumentscontainedtherein, saidaircraftbearingtailnumber
N679PE;
b. 46.175 acre tract ofland, more or less, located in Bexar County, Texas,
moreparticularlydescribedas:
TRACT1: That certain 46.175 acre tract of land being all ofthat
47
conveyed in Special Warranty Deed to Tally-Ho Venture, Ltd., recorded
inVolume 11819,Pages 1848-1856oftheOfficial PublicRecordsofReal
Property ofBexar County, Texas, out ofthe Charles S. Seidenschnur
Survey No. 410, Abstract 1222, County Block 4725 ofBexar County,
Texas, now in New City Blocks 14859 and 34725 ofthe City ofSan
Antonio, BexarCounty, Texas, SAVE AND EXCEPTthat certain 1.00
acre,or43,577squarefeetmoreorlesstractefland;and
TRACT2: Aneasementto Tract I, said easementbeing 0.1383 acres,
and being 16 feet wide, created, granted and described by Sanitary Sewer
EasementAgreement~ andbetweenLaCanteraDevelopmentCompany,
as grantor, and Camp Bullis, Ltd., as grantee, dated July 29, 2003,
recorded in Volume 1 0189, Page 1718, Official Public Records ofReal
Propertyof BexarCounty,Texas,
c. A residence on Windward Drive, Port Isabel, Texas, more particularly
described as: LotOne (1), BlockOne(1), RACE SUBDIVISION, Cityof
PortIsabel, CameronCounty, Texas, accordingto the Map orPlatthereof
recorded in Cabinet 1, Slot 1681-B, Map Records ofCameron County,
Texas.
d. A forfeiture money judgment in the approximate amount of $
$23,000,000.00 for which the defendants may be jointly and severally
liableasto CountFour.
e. A forfeiture money judgment in the approximate amount of
$23,000,000.00 for which the defendants may be jointly and severally
liableastoCountFive.
4. Ifany ofthe property described above, as a result ofany act or omission ofthe
defendant:
a. cannotbelocatedupontheexerciseofduediligence;
b. hasbeentransferred,orsoldto,ordepositedwith,athirdparty;
c. hasbeenplacedbeyondthejurisdictionof thecourt;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwithotherpropertywhichcannotbedividedwithout
difficulty;
48
theUnitedStatesofAmericashall be entitledto forfeiture-ofsubstitutepropertypursuantto Title
21,UnitedStatesCode, Section853(p).
NOTICEOFFORFEITUREPURSUANTTO
TITLE18,UNITEDSTATESCODE,SECTION982
1. The allegations contained in Counts Six, Seven, and Nine are hereby realleged and
incorporated by reference for the puq)ose ofalleging forfeitures pursuant to Title 18, United
StatesCode,Section982(a)(2)(A).
2. The United States of America g1ves notice to the defendant, FERNANDO
.. -
ALEJANDROCANOMARTINEZ,that,uponconvictionofan offenseinviolationofTitle 18,
United States Code, Section 1344, or a conspiracy to violate such section and pursuantto Title
18, United States Code, Section 982(a)(2)(A), the United States ofAmerica shall forfeit any
property constituting, or derived from, proceeds obtained directly or indirectly, as the result of
suchviolation.
-
3. Thepropertytobeforfeited includes,butisnotlimitedto,thefollowing:
a. Aforfeiture moneyjudgmentinthe approximateamountof$2,570,000 as
to CountSix.
b. Aforfeiture moneyjudgmentintheapproximate amountof$6,650,000 as
to CountSeven.
c. Aforfeiture moneyjudgmentintheapproximate amountof$3,050,000 as
toCountNine.
4. If any ofthe property described above, .as a result ofany act or omission ofthe
defendant:
a. cannotbelocatedupontheexerciseofduediligence;
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
49


c. hasbeenplacedbeyondthejurisdictionofthecourt;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwithotherpropertywhichcannotbedividedwithout
difficulty;
theUnitedStatesofAmericashallbeentitledto forfeitureofsubstitutepropertypursuanttoTitle
21, UnitedStatesCode, Section853(p).
NOTICEOFFORFEITUREPURSUANTTO
TITLE18,UNITEDSTATESCODE,SECTION982
1. The allegations contained in Counts Eight, and Ten are hereby realleged and
incorporated by reference for the purpose ofalleging forfeitures pursuant to Title 18, United
StatesCode,Section982(a)(2)(A).
2. The United States of America gtves notice to the defendant, TOMAS
YARRINGTONRUVALCABA,that, upon conviction ofan offense in violation ofTitle 18,
United States Code, Section 1344, or a conspiracy to violate such section and pursuant to Title
18, United States Code, Section 982(a)(2)(A), the United States ofAmerica shall forfeit any
property constituting, or derived from, proceeds obtained directly orindirectly, as the result of
suchviolation.
3. Thepropertytobeforfeitedincludes,butisnotlimitedto,thefollowing:
a. Aforfeituremoneyjudgmentintheapproximateamountof$200,000.00as
toCountEight.
b. Aforfeituremoneyjudgmentintheapproximateamountof$150.000.00as
toCountTen.
4. Ifany ofthe property described above, as a result ofany act or omission ofthe
defendant:
50

a. cannotbelocatedupontheexerciseofdue diligence;
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
c. hasbeenplacedbeyondthejurisdictionofthecourt;
d. hasbeensubstantiallydiminishedinvalue;or
e. hasbeencommingledwithotherpropertywhichcannotbedividedwithout
difficulty;
theUirited Statesof AmericashallbeentitledtoforfeitureofsubstitutepropertypursuanttoTitle
21,UnitedStatesCode,Section853(p).
NOTICEOFFORFEITUREPURSUANTTO
TITLE31,UNITEDSTATES.CODE,SECTION5317
1. The allegations contained in Count Eleven are hereby realleged and incorporated by
referenceforthepurposeofallegingforfeiturespursuantto Title31,UnitedStatesCode, Section
5317.
2. The United States of America gives notice to the defendant, TOMAS
YARRINGTONRUVALCABA,that, upon conviction ofan offense in violation ofTitle 31,
UnitedStatesCode,Section5324andpursuanttoTitle31,UnitedStatesCode, Section5317,the
United States ofAmerica shallforfeit allproperty, real orpersonal,involvedinthe offenseand
anypropertytraceablethereto.
3. Thepropertytobeforfeitedincludes,butisnotlimitedto,thefollowing:
a. Aforfeituremoneyjudgmentinthe approximateamountof $750,000.00.
4. Ifany ofthe property described above, as a result ofany act or omission ofthe
defendant:
a. cannotbelocatedupontheexerciseofduediligence;
51
..

..
b. hasbeentransferred,orsoldto, ordepositedwith,athirdparty;
c. hasbeenplacedbeyondthejurisdictionof thecourt;
d. hasbeensubstantiallydiminishedinvalue; or
e. hasbeencommingledwithotherpropertywhichcannotbedividedwithout
difficulty;
theUnited StatesofAmericashall beentitledto forfeiture ofsubstitutepropertypursuanttoTitle
21, United StatesCode, Section853(p), asincorporatedbyTitle31,United StatesCode, Section
5317(c).
52

ATRUEBILL
FOREPERSONOFTHEGRANDWRY
KENNETHMAGIDSON
u ~
CharlesLewis
ampton
AssistantUnitedStatesAttorney
~ ~ : ; : : : ; . .
TRiJE COPY I CERTIFY
ATTIST:
DAV.Jlft. J. BRADLEY, Clerk ilf. ( ourt
'' ..,.., :'b \dP :i;
53
Dr . . Deputy a .,..