Source: Office of United States Attorneys
McALLEN, Texas – A 51-year-old Houston man has been ordered to federal prison for conspiracy to commit wire fraud, announced U.S. Attorney Nicholas J. Ganjei.
Daniel Rodriguez Martinez pleaded guilty May 1.
Chief U.S. District Judge Randy Crane has now ordered Martinez to serve 54 months in prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that detailed how Martinez directly benefited from the scheme by personally receiving $1.4 million and that he played an integral role by creating a fraudulent company to conceal payments.
From March 2021 to May 2024, Martinez and others ran the scheme by creating a fake utility company to conceal profits. They used stolen personal information, including Social Security numbers, to open electricity accounts with real providers. The stolen identities were linked to actual service addresses, allowing customers to receive power while the billing responsibility fell on unsuspecting victims.
When providers shut off service for nonpayment, the group reopened accounts under new fake identities. In exchange for uninterrupted electricity, customers paid a flat fee of $80 per month to the fraudulent company. The operation allowed participants to avoid legitimate charges while the organizers profited from the deception.
Martinez admitted to creating a fake electricity services company solely to conceal the theft scheme. He received payments from clients through peer-to-peer apps such as CashApp and Zelle, then transferred the funds into a business account to mask their origin.
As a part of his plea, he agreed to forfeit $456,859.76 in U.S. currency as well as his interest in multiple properties.
He will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.