McALLEN, Texas (ValleyCentral) — Gulf cartel boss Osiel Cardenas Guillen’s son-in-law pleaded guilty to extortion and money laundering charges Thursday.
Carlos “Cuate” Martinez, 38, of Mission, Texas, participated in a conspiracy to fix prices for transmigrante services in South Texas.
The conspiracy forced transmigrantes — people who transport cars and other goods from the United States to Central America — to pay at least $27 million from 2014 to 2022, according to an indictment filed by federal prosecutors.
“It calls for a fixed sentence of 11 years,” said attorney Kent A. Schaffer of Houston, who is part of Martinez’s legal team.
The U.S. Attorney’s Office for the Southern District of Texas declined to comment.
Carlos Favian Martinez married Celia Marlene Cardenas in 2004, according to information published by the Cameron County Clerk’s Office.
Her father, Osiel Cardenas Guillen, was among the last old-school leaders of the Gulf cartel and played a key role in the creation of the Zetas.
Martinez settled in Mission.
During a hearing in June 2023, an FBI agent testified that Martinez lived in a 17,400-square-foot mansion in Sharyland, owned a private jet and acquired a fleet of luxury cars, including two Range Rovers.
Martinez also owned a casino in Mexico and property in Cancun.
The investigation started in 2018, when the federal government received complaints about the Gulf cartel extorting businesses that provided services to transmigrantes.
At the time, Mexico required transmigrantes to use the Free Trade International Bridge in Los Indios.
Before they crossed the border, though, transmigrantes had to obtain travel permits and fill out customs forms.
Businesses in the United States assisted transmigrantes with the paperwork.
In 2011, four businesses in Cameron County decided that, rather than compete, they would all charge the same price.
“This group referred to themselves as the ‘Fantastic Four,’ and later, the ‘Fantasticos,’” according to a plea agreement signed by Mireya Miranda, who participated in the conspiracy.
Prosecutors obtained a copy of the June 2011 agreement, which set prices for cars and trucks.
The businesses also had to contend with the Gulf cartel, which forced transmigrantes to pay a piso — a tax — on every car that crossed the border.
In an attempt to avoid problems, a business owner approached Martinez through an intermediary.
“That’s how he first got involved,” said Schaffer, the attorney who represents Martinez. “They thought that he could somehow be a buffer between the agencies and the cartels, to try to minimize any payments that they would have to make. And it didn’t work out that way.”
Martinez took over the group, which became known as “The Pool,” according to the indictment against him.
In addition to fixing prices, The Pool created a monopoly on transmigrante services.
“For example, any other market participant who was not part of the conspiracy had to join and pay into the ‘Pool,’” according to Martinez’s plea agreement. “In order to join the Pool, agencies had to agree to fix prices and agree to profit-sharing percentages that were set by Defendant and the co-conspirators.”
Any business that refused to pay risked retaliation from the Gulf cartel.
People who didn’t participate in The Pool were beaten, kidnapped and shot in Mexico. At least four people died.
In one instance, which involved a beating, the attackers claimed they worked for “Cuate” and said “this is what happens when you do not cooperate,” according to the indictment.
Martinez collected at least $9.5 million during the conspiracy, according to his plea agreement.
Homeland Security Investigations, which is part of the U.S. Department of Homeland Security, handled the case with assistance from the FBI.
Prosecutors brought charges against a dozen people. Some owned transmigrante businesses. Others had Gulf cartel connections.
Martinez was arrested in November 2022.
When agents questioned him, Martinez said he’d just returned from a trip to Europe, which included stops in Italy, Switzerland and France.
The next day, agents stopped a Range Rover leaving Martinez’s house in Sharyland.
His wife was behind the wheel, according to an FBI agent who testified during a hearing in June 2023. When they searched the car, agents found a Louis Vuitton bag that contained $375,000 in cash.
A grand jury indicted Martinez on five charges, including extortion and money laundering. If convicted, he faced a maximum of 20 years in prison.
Martinez assembled an all-star legal team that included attorneys from the Rio Grande Valley and Houston.
After two years in jail, however, Martinez agreed to plead guilty in exchange for an 11-year sentence.
Sentencing is scheduled for May.
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