Source: United States Department of Justice News
SAN ANTONIO – A Canyon Lake man was sentenced yesterday to 97 months in prison and over $8.9 million in restitution for his role in a scheme to defraud several San Antonio financial institutions. He was also ordered to pay a $2.9 million money judgment for the proceeds derived from his criminal activity.
According to court documents, Ronald Wayne Schroeder, 49, along with his co-defendants, Jill Martin Alvarado, 60, of Irving; Rigo Alvarado, 57, of Barstow; Ryan Martinez, 58, of San Antonio; and Phyllis Joe Martinez, 80, of San Antonio, conspired to defraud various financial institutions of money by factoring false and fraudulent invoices. Factoring is when a company sells specific accounts receivable to a third party at a discounted price to accelerate its cash flow.
Schroeder used fraud and deceit to factor false invoices for companies owned by his co-defendants. Schroeder would factor these false invoices with Southwest Bank and Bank of San Antonio (BOSA). Schroeder and other co-conspirators would then use that money for their own personal enrichment or to pay off old invoices owed to the financial institutions much like a Ponzi scheme where money from new investors is used to pay old investors.
Three companies involved in the scheme included: Nerd Factory, which was owned by Ryan Martinez and later, Phyllis Martinez; Alvy’s Logistics, which is owned by Jill and Rigo Alvarado; and, Republic Logistics, a fake company created and used by Schroeder to steal money for himself. According to the 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 of Nerd Factory, Ryan Martinez and later, Phyllis Martinez, 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 obtained to Schroeder.
In addition to using false and fraudulent invoices for actual companies, Schroeder submitted the 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. In its forfeiture proceedings, the United States seized and forfeited several items, including a Shelby Mustang and proceeds for the sale of a Port Aransas property, and sold Schroeder’s interest in a Columbia single engine aircraft.
On December 9, 2021, Schroeder pleaded guilty to one count of conspiracy to commit bank fraud.
“Today’s sentencing demonstrates that our office has and will continue to aggressively pursue and prosecute fraud against financial institutions,” said Executive Assistant U.S. Attorney Kristy Callahan. “This type of fraud damages the economy and eventually the consumer. Along with our partners in law enforcement, this office will hold accountable those who commit fraud, divest them of criminal proceeds, and use federal remedies to recover victim losses.”
Schroeder’s co-defendants all pleaded guilty to one count of conspiracy to commit bank fraud. Phyllis Martinez was sentenced to time served and ordered to pay restitution of $289,984; Jill Alvarado was sentenced to time served and ordered to pay restitution of $3,904,924.92; Rigo Alvarado was sentenced to 48 days imprisonment and ordered to pay restitution of $3,904,924.92; and Ryan Martinez is still pending sentencing.
The FBI investigated the case. The U.S. Marshal Service assisted with the recovery of property derived from criminal proceeds.
Assistant U.S. Attorneys Joseph E. Blackwell prosecuted the case. Assistant U.S. Attorney Fidel Esparza III handled the asset forfeiture proceedings.
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