Factoring Scheme Allegedly Costs San Antonio Area Banks More Than $13MM

According to the U.S. Attorney’s Office for the Western District of Texas, an indictment was filed on Nov. 10 that charged five individuals from San Antonio with defrauding Southwest Bank, the Bank of San Antonio and TransPecos Bank out of more than $13 million by submitting fake invoices that were factored by the banks.

Ronald Wayne Schroeder, Jill Martin Alvarado, Phyllis Jo Martinez, Rigo Alvarado and Ryan Martinez were charged with one count of conspiracy to commit bank fraud, according to a press release from the U.S. Attorney’s Office for the Western District of Texas. The indictment also included several other charges, including a count of conspiracy to commit money laundering against Schroeder, Jill Alvarado, Ryan Martinez and Phyllis Martinez; a count of conspiracy to launder monetary instruments against Schroeder, Ryan Martinez and Phyllis Martinez; and three counts of bank fraud against Schroeder.

The indictment claims that fake invoices were submitted on behalf of three companies, Nerd Factory, Alvy’s Logistics and Republic Logistics, the latter of which was allegedly “fake” and “used by Schroeder to steal money for himself,” according to the release.