A Killeen couple have pleaded guilty to swindling the US Army out of millions of dollars over the years.

Meet Kevin and Christine

Kevin Romulus Pelayo and Christine Furio Fredericks appeared in US District Court in Waco yesterday pleading guilty to two counts of engaging in monetary transactions with criminally derived property

Pelayo also pleaded guilty to conspiracy to commit wire fraud.

They're Facing Some Serious Jail Time

KWTX reports that each can face as much as 10 years in jail for money laundering charges and Pelayo could face up to 20 years on the conspiracy charge.

Sentencing has not been set.

So, What Exactly Did They Do?

Between January 2014 and June 2020, Pelayo and Fredericks admitted they provided false documentation regarding their rideshare program, including the names of over 1000 active-duty soldiers who didn't know Pelayo and Fredericks.

Investigators say the pair used the information to fraudulently collect money from a Department of Transportation benefits program.

The program, introduced back in 2001, designed to subsidize commuting costs for soldiers who use mass transportation.

Jail Time Isn't the Only Price They'll Pay

Reportedly, the couple will forfeit proceeds including real estate properties in Central Texas in Killeen, Harker Heights, Copperas Cove, and Kempner.

They also agree to pay back $600,000 in cash, 43 automobiles,120 designer tote bags, and much more.

That's right: These two made enough money off this scam to buy up property, cars, and fancy accessories.


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