The son-in-law of Osiel Cardenas Guillen, the former boss of the Cártel del Golfo (CDG), pleaded guilty to extortion and money laundering charges at the U.S. Attorney's Office for the Southern District of Texas on Feb. 6.
Authorities say that Carlos Favian Martinez alias "El Cuate" participated in a conspiracy to fix prices for transmigrante services in South Texas.
As detailed by an indictment filed by federal prosecutors, the conspiracy forced transmigrantes —people bringing cargo overland from the U.S. through Mexico to Central America— to pay at least $27 million in a span between 2014 to 2022.
"It calls for a fixed sentence of 11 years," said attorney Kent A. Schaffer of Houston, who is part of Martinez's legal team.
As mentioned by Border Report, "El Cuate" was first introduced to the cartel when he married Celia Marlene Cardenas in 2004, the daughter of Cardenas Guillen, one of the last old-school leaders of the Cartel del Golfo.
Authorities said the investigation into the conspiracy led by El Cuate began in 2018, when the federal government received complaints about the Cartel del Golfo.
Prosecutors say that the cartel forced transmigrants to pay a tax on every car that crossed the border and any business that refused to pay risked retaliation from the criminal group, but people that did not agree to the deal were either beaten, kidnapped or shot in Mexico. Border Report says at least four people died as a result.
El Cuate was later arrested in November of 2022 and according to his plea agreement, he collected at least $9.5 million during the conspiracy.
Martinez' legal team has been battling a grand jury indictment for two years, which was set to sentence El Cuate to a maximum of 20 years in prison. But after months of negotiations, he agreed to plead guilty in exchange for an 11-year sentence. His sentencing is scheduled for May.
"After two years we were able to reach a deal for an 11-year sentence," Kent A. Schaffer, Martinez' lawyer, told the Associated Press. "Mr. Martinez believes this resolution will help him return home as soon as possible," he added.
Before his arrest, El Cuate lived in Mission, Texas. A day after his arrest, an FBI agent that testified during a hearing in June 2023 said Martinez' wife was spotted leaving their house in Sharyland. When authorities searched the car, agents found a Louis Vuitton bag that contained $375,000 in cash.
As part of investigations, prosecutors brought charges against 11 other individuals with either connections to the Cartel del Golfo or owners of transmigrant businesses.
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