Texas Border City Commissioner Charged in Money Laundering and Smuggling Case

A city commissioner from McAllen, Texas, has been arrested on federal charges of money laundering and smuggling, accused of running an illegal used clothing operation that extended into Mexico. Authorities also arrested his wife, who allegedly helped arrange the cross-border transactions.

Rodolfo “Rudy” Castillo, a McAllen city commissioner, appeared before a U.S. magistrate judge on Friday, where his bond was set at $100,000. His wife, Bertha Castillo, faced similar charges and received a $75,000 bond. The arrests followed coordinated raids on used clothing warehouses across McAllen, during which Immigration and Customs Enforcement (ICE) agents also detained several illegal migrants found working at the sites.

According to a federal criminal complaint, the case began in August when a confidential informant recorded a phone call with Castillo about purchasing and smuggling used clothing into Mexico. During the call, Castillo admitted to bribing Mexican federal police with about 20,000 pesos ($1,000 USD) per shipment to bypass customs regulations. He allegedly promised customers partial refunds if their goods were seized.

Mexico tightly restricts the importation of used clothing, and federal authorities say Castillo’s operation exploited those laws through bribery and corruption. Used clothing smuggling is often linked to organized crime and cartel activity in northern Mexico.

Investigators said an undercover Homeland Security Investigations (HSI) agent later met with Bertha Castillo at the couple’s business, Oro Ropa Usada, to hand over $20,700 for a shipment of clothing. On September 2, federal agents stopped a truck headed to Reynosa, Mexico, from the business and discovered improperly documented cargo, including clothing, motor oil, and food.

Subsequent searches seized 57 bales of clothing, 300 containers of motor oil, and 200 boxes of food. During Thursday’s raid at the Castillos’ home and business, agents also detained several illegal migrants allegedly employed at the warehouse.

Both Castillos remain under federal investigation and face potential prison time if convicted.

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