After arrest, McAllen city commissioner says he will not resign

McALLEN, Texas (ValleyCentral) — McAllen City Commissioner Rodolfo “Rudy” Castillo returned to City Hall on Monday after more than two weeks in jail.

Castillo — who is charged with laundering money and smuggling clothing across the border — said he doesn’t plan to resign.

“I asked my constituents,” said Castillo, who represents southwest McAllen. “A lot of them.”

They told him to “keep your chin up,” Castillo said. “And move forward.”

Castillo and his wife, Bertha, own Oro Ropa Usada, which buys and sells used clothing.

Many businesses in the Rio Grande Valley buy used clothing from Goodwill and other nonprofit organizations in the United States. The clothing, which is known as ropa usada, is shipped to warehouses in McAllen and Hidalgo.

Some is sold at local thrift stores. Most is exported to Mexico.

Officially, it’s illegal to import used clothing into Mexico without special permission from the government. In practice, however, the law is widely ignored.

The situation leaves many ropa usada businesses in a legal gray area.

To avoid scrutiny, some don’t submit customs paperwork. Others pay corrupt Mexican officials for protection.

A federal informant called Castillo on Aug. 8.

During the call, Castillo said he “avoids reporting merchandise entry into Mexico to evade detection by authorities,” according to the criminal complaint against him.

Castillo also confessed to paying members of an elite Mexican law enforcement unit.

“The people who are on the floor, they eat from a different plate,” Castillo said in Spanish, according to the criminal complaint, “implying that individuals in lower positions or struggling operate differently and may accept bribes to make ends meet.”

Homeland Security Investigations, which is part of U.S. Immigration and Customs Enforcement, sent an undercover agent to meet with Castillo on Aug. 26.

The undercover agent paid Castillo nearly $21,000 in cash “for the purchase and transport of used clothing into Mexico,” according to the criminal complaint.

During the meeting, the undercover agent made suspicious comments about transporting money.

The undercover agent said “his job was to collect money from Houston and transport it south,” according to the criminal complaint, “earning a 1-2% commission on the total amount transported.”

People who transport cash for drug trafficking organizations frequently receive a percentage of the money as payment. The organizations also launder cash through local ropa usada businesses, according to information published by the U.S. Treasury Department.

Castillo accepted the money anyway.

On Sept. 2, a week after the meeting, U.S. Customs and Border Protection stopped a truck carrying used clothing from Oro Ropa Usada.

The trucker said Castillo “had only provided him with Mexican importation documents, which contained blank fields and lacked a commodity description,” according to the criminal complaint.

During a conversation with federal agents, Castillo said he didn’t submit customs paperwork for the shipment.

Castillo “claimed that he believed the responsibility for filing documentation rested with his Mexican customers,” according to the criminal complaint.

Homeland Security Investigations raided Oro Ropa Usada and searched Castillo’s house on Oct. 2.

Agents charged Castillo with laundering money and smuggling goods from the United States.

After more than two weeks in jail, Castillo posted bond on Oct. 21. He returned to City Hall on Monday afternoon wearing a gray suit with a pink tie.

His constituents encouraged him to remain on the City Commission, Castillo said, and he agreed to keep representing southwest McAllen.

“They’re behind me 100%,” Castillo said. “And we’ll see what happens.”

Castillo is up for re-election in 2027. If convicted on the money laundering charge, he faces a maximum of 20 years in federal prison.