Webb County Sheriff Martin Cuellar faced a federal judge on Thursday, following allegations that he misused public funds to operate a fraudulent disinfecting business during the COVID-19 pandemic. Cuellar has pleaded not guilty and was released on bond after the charges were unsealed.

Cuellar, along with his assistant chief, was indicted in November. Prosecutors claim that they established the for-profit business, Disinfect Pro Master, in April 2020, and entered into contracts with local businesses to provide cleaning services without having any employees or supplies of their own. The company managed to secure a $500,000 contract to sanitize schools in Laredo, leveraging department staff and resources to fulfill these obligations, according to U.S. Attorney Nicholas Ganjei of the Southern District of Texas.

Ganjei stated that the operation functioned largely on the labor and supplies provided by the county, with minimal overhead costs. Allegations suggest that Cuellar and two deputies shared the profits equally, each allegedly pocketing around $175,000 from the venture.

Rick Rodriguez, a former deputy of Cuellar, has already pleaded guilty to his involvement in the scheme. However, Cuellar’s attorney, Eric Reed from the Reed Law Firm in Houston, has categorically denied any wrongdoing by his client. Reed asserted that the government must demonstrate that Cuellar was aware of and involved in any misconduct, which he argues they will struggle to prove.

If found guilty, Cuellar could face significant penalties, including up to 10 years for conspiracy and theft of federal funds, along with another 10 years for charges related to money laundering connected with the earnings from the alleged scheme, which was reportedly used to purchase property in Laredo.

Interestingly, Cuellar is the brother of U.S. Rep. Henry Cuellar, who was recently pardoned on federal corruption charges by former President Donald Trump. The congressman himself was indicted in May 2024 on multiple charges pertaining to bribery and conspiracy concerning relations with an oil-and-gas company and a Mexican bank.

Sheriff Martin Cuellar, a Democrat, recently won reelection to a fifth term in 2024 after having held his position since 2009. Meanwhile, his brother Henry Cuellar continues his campaign for a 12th term in Congress. Notably, Trump has publicly criticized Henry Cuellar for his decision to again run as a Democrat following the presidential pardon.

Reed has expressed concerns that political motives may unduly influence the prosecution of this case, which he believes lacks sufficient evidence to proceed and should have been dismissed long ago.

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