Judge sets bond at $100,000 for McAllen city commissioner accused of smuggling, laundering money

McALLEN, Texas (ValleyCentral) — A judge on Tuesday set bond at $100,000 for McAllen City Commissioner Rodolfo “Rudy” Castillo, who is jailed on federal smuggling and money laundering charges.

After a brief hearing on Tuesday afternoon, U.S. District Judge Drew B. Tipton set bond at $100,000 — and required Castillo to post the full amount in cash.

“A bond is a bond,” said attorney Rick Salinas of Mission, who represents Castillo. “The only thing I didn’t like was the cash deposit. I hope the family can put it together.”

Tipton set bond for Castillo’s wife, Bertha, at $75,000. She must also pay the full amount in cash.

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

Many businesses in the Rio Grande Valley buy used clothing — which is known as ropa usada — from Goodwill and other nonprofit organizations in the United States.

Some is sold in thrift stores. Most, though, is exported to Mexico.

Shipping the clothing across the border can be tricky. It’s illegal to import used clothing without special permission from the Mexican government.

To avoid problems, some ropa usada businesses pay corrupt Mexican customs officials and people affiliated with organized crime for protection.

Agents with Homeland Security Investigations, which is part of U.S. Immigration and Customs Enforcement, had an informant call Castillo on Aug. 8.

Castillo “explicitly stated that he avoids reporting merchandise entry into Mexico to evade detection by authorities,” according to the criminal complaint against him.

During the call, Castillo also bragged about bribing members of an elite law enforcement unit.

Homeland Security Investigations sent an undercover agent to meet with Castillo and his wife on Aug. 26.

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 money for drug trafficking organizations frequently receive a percentage of the money.

Apparently unconcerned, Castillo and his wife accepted $20,742 in cash from the undercover agent, according to the criminal complaint, “for the purchase and transport of used clothing into Mexico.”

U.S. Customs and Border Protection seized the shipment in Hidalgo.

Castillo didn’t report the cash transaction, according to the criminal complaint, or submit export paperwork for the clothing.

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

U.S. Pretrial Services recommended a $75,000 bond with no cash deposit.

After the government objected, U.S. Magistrate Judge Juan F. Alanis set bond at $100,000 with a $10,000 cash deposit for Castillo and $75,000 with a $7,500 cash deposit for his wife.

Prosecutors appealed the decision, which kept Castillo and his wife in jail for more than 10 days.

U.S. District Judge Drew B. Tipton heard the appeal by videoconference Tuesday afternoon. It took just 10 minutes.

Assistant U.S. Attorney Patricia Cook Profit, who is prosecuting the case, said the government believed Castillo and his wife could flee the country if released.

“He had, at one point in time — on Sept. 11, when he spoke to the agents — had indicated to them that he was there because he hadn’t done anything seriously wrong,” Profit said. “And if he had done something seriously wrong, he would go to Mexico.”

Homeland Security Investigations discovered a large amount of cash at Castillo’s house, Profit said.

Before they counted the money, agents believed they had seized $100,000 to $300,000.

The actual amount was $159,610.50, Profit said Tuesday afternoon.

Homeland Security Investigations also searched his phone, Profit said, which revealed that Castillo was in communication with about 49 people in Mexico from Sept. 5 to Oct. 2.

His access to large amounts of cash and connections in Mexico concerned the government.

“Because they would be in a position to establish a new life in Mexico,” Profit said. “Which is why the government considers them a flight risk.”

As she talked, Castillo and his wife, Bertha, watched from the East Hidalgo Detention Center in La Villa.

Castillo, wearing an orange jail uniform, stood next to his wife in what appeared to be a library. They didn’t speak during the hearing.

Attorney Oscar Vega of McAllen, who represents Bertha, said the government hadn’t actually linked the cash to any specific illegal activity.

“It’s not illegal to have U.S. currency in your possession,” Vega said.

Vega also scoffed at the suggestion a person’s cell phone contacts might predict whether they would flee the country.

“It doesn’t make any sense, judge,” Vega said. “The testimony is not there. The evidence is not there to detain these individuals.”

Salinas, the attorney who represents Castillo, agreed.

Castillo is a longtime resident of McAllen with no criminal record.

“If these people don’t qualify for bail, who does?” Salinas said.

Tipton, the federal judge, listened politely and adjourned the hearing.

“I will get an order out later today,” Tipton said, without actually revealing his decision. “And we’ll be off and running.”

Bertha looked at her husband and appeared to ask: “What happened?” Castillo made a hand gesture that suggested he didn’t know.

Tipton’s order hit the docket about two hours after the hearing adjourned.