Sentencing Handed Down in San Antonio Factoring Scheme, Schroeder Gets 97 Months

According to the U.S. Attorney’s Office for the Western District of Texas, Ronald Wayne Schroeder, former president of Texas Express Funding, a factoring subsidiary, was sentenced to 97 months in prison and more than $8.9 million after pleading guilty last December in a case 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.

As previously reported, last November, 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 claimed 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 from November.

In addition to Schroeder’s sentencing, the court ordered Jill Alvarado and Rigo Alvarado to each pay more than $3.9 million in restitution and Phyllis Martinez to pay $289,984 in restitution. The court also sentenced Rigo Alvarado to 48 days in prison, while Jill Alvarado and Phyllis Martinez were sentenced to time served. Sentencing for Ryan Martinez is still pending.

“Today’s sentencing demonstrates that our office has and will continue to aggressively pursue and prosecute fraud against financial institutions,” Kristy Callahan, executive assistant U.S. Attorney, said. “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.”