Pharr man accused of bilking North Carolina business out of $380,000

Federal prosecutors have charged a man with bilking a business in North Carolina that sold handmade knives out of $300,000 in a scheme to sell shipping containers in Mexico.

Instead, Jose Angel Guerra III took the money and never sold a single container, according to an indictment filed in McAllen federal court on Tuesday.

He was arrested Thursday in Pharr, court records show.

The indictment said that Guerra contacted the owner of the unidentified business in March 2020 to place an order for a knife. In April and May of that year, he placed two more orders, according to the indictment, one of which was a custom order.

The business’ owner, who is identified as M.D. in the indictment, was told by Guerra during a phone call that he owned a company called Steel Innovations and sold metal shipping containers and custom-crafted steel benches.

“Jose Angel Guerra, III informed M.D. that M.D. could purchase steel shipping containers for $5,000 each and Jose Angel Guerra, III would sell the containers in Mexico for a profit,” the indictment stated. “Jose Angel Guerra, III informed M.D. that he would pay M.D. $1,000 in profit for each container sold in Mexico.”

M.D. agreed and sent Guerra $100,000 to purchase 20 containers that were to be sold for $6,000 each and M.D.’s return on the investment would be paid in 90 days, according to the indictment.

M.D. then sent $200,000 dollars to Guerra for a total investment of $300,000.

“In or around September of 2022, M.D. requested a status on his payments, to which Jose Angel Guerra, III provided multiple fabricated explanations,” the indictment stated. “In truth, Angel Guerra, III misappropriated the $300,000 in payments from M.D.”

In November 2022, Guerra requested additional monies from M.D. to be used to purchase construction materials for metal buildings on lots in Dallas.

“On or around November 4, 2022, Jose Angel Guerra, III sent M.D. construction schematics detailing plans, floor plans, and other specifics for the purported construction projects,” the indictment stated. “Following receipt of the schematics, M.D. agreed to send Jose Angel Guerra, III two $40,000 installments for a total of $80,000. Angel Guerra, III misappropriated the $80,000 in payments from M.D.”

M.D. still has not been paid for his investments.

Furthermore, Guerra did not purchase construction materials and was not even a member of the construction team for the schematics he provided to M.D., according to the indictment.

Guerra was scheduled to make a first appearance in McAllen federal court on Friday.

He is charged with wire fraud.

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