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Webb County Sheriff Pleads Not Guilty as COVID-Era Fraud Indictment Is Unsealed

Prosecutors allege misuse of sheriff’s office resources to operate a private disinfecting company during the pandemic.

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From left: Webb County Sheriff Martin Cuellar poses with his brother, U.S. Rep. Henry Cuellar, D-Laredo, and Gov. Greg Abbott in downtown Laredo on Feb. 23, 2019.
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Overview

  • Martin Cuellar and Assistant Chief Alejandro Gutierrez made their first federal court appearances in Houston, pleaded not guilty, and were released on $5,000 bonds.
  • A five-count indictment charges conspiracy, three counts of defrauding a local government that receives federal funds, and a financial transaction involving criminally derived property.
  • Prosecutors say the pair helped form Disinfect Pro Master in April 2020 and used county staff, vehicles and supplies to fulfill contracts, including a $500,000 deal with United Independent School District.
  • Authorities allege the operation ran from 2020 to 2022 with minimal overhead, the three participants split profits of about $175,000 each, and Cuellar used $71,000 to buy a 10-acre property.
  • The case stems from a 2023 FBI raid and was investigated by FBI-San Antonio and DHS OIG on the Laredo Border Corruption Task Force; former assistant chief Ricardo Rodriguez has pleaded guilty with sentencing set for March.