Sheriff's employees charged in fraudulent loan scheme
EDINBURG — Two employees of the Hidalgo County sheriff’s office face criminal charges in connection with an alleged scheme to obtain $82,000 in loans using false information.
Sheriff Lupe Trevino fired twin brothers Jose Luis and Juan Carlos Villarreal on Monday, after an internal investigation suggested they worked with another woman to file several fraudulent loan applications using titles for cars that didn’t exist as collateral.
Jose Luis Villarreal, 25, had worked for the sheriff’s office for five years as a deputy. His brother had worked as a detention officer in the county jail for two.
"We have worked too hard and we have worked too long to gain the reputation we have now," the sheriff said. "I am extremely disappointed by our ex-deputy and ex-detention officer’s actions."
According to a probable cause affidavit filed in their case, the Texas Rangers first began investigating the brothers last week after an Atlanta-based loan company reported suspicious activity coming from Texas Car and Title & Payday Loan Services in Edinburg.
Investigators believe Jose Luis Villarreal’s girlfriend — loan company manager Samantha Renee Vega — approved their loan applications knowing the information on them to be false, Trevino said. She also faces charges in connection with the case.
But it remains unclear how the Georgia company first became aware of the alleged fraud. Texas Rangers declined to elaborate on the specific process the Villarreals and Vega reportedly used to avoid detection.
"We’re not going to disclose any more information at this time because this is an ongoing investigation," Ranger Lt. Rolando Castaneda said.
An Hidalgo County Justice of the Peace charged Vega and Juan Carlos Villarreal with felony theft and engaging in organized criminal activity and released them on a $20,000 personal recognizance bond.
Jose Luis Villarreal faces similar charges and an additional count of tampering with government records.
Both the Villarreal brothers and Vega could not be reached for comment Monday. It was not immediately clear whether they had retained attorneys.
If convicted on all counts, all three could face up to 10 years in prison and $10,000 in fines.
