Photos: Feds find $100K to $300K in cash at McAllen city commissioner’s house

McALLEN, Texas (ValleyCentral) — Homeland Security Investigations seized a large amount of cash from McAllen City Commissioner Rodolfo “Rudy” Castillo’s house before his arrest, according to a federal agent who testified during a hearing on Friday.

Special Agent Mario Godinez, who testified during a hearing on Friday afternoon, said Homeland Security Investigations hadn’t counted the cash, but agents believed they had seized $100,000 to $300,000.

“Having cash is not illegal,” said attorney Rick Salinas of Mission, who represents Castillo. “There’s nothing wrong with it.”

Rodolfo Castillo, 55, of McAllen joined the City Commission in 2022. He represents District 4, which covers southwest McAllen.

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

Many businesses in the Rio Grande Valley sell used clothing — which is known as ropa usada — to customers in Mexico.

Mexico, however, restricts the importation of used clothing. As a result, many ropa usada businesses operate in a legal gray area.

Some pay corrupt Mexican customs officials and people affiliated with drug cartels for permission to ship clothing across the border.

Homeland Security Investigations, which is part of U.S. Immigration and Customs Enforcement, started scrutinizing Castillo in August.

Godinez summarized the investigation on Friday afternoon, when Castillo and his wife appeared in federal court for a bond hearing.

The case started on Aug. 8, when Homeland Security Investigations recorded a phone call with Castillo.

During the call, Castillo “discussed making payments to various parties, including corrupt Mexican law enforcement officials,” according to the criminal complaint against him.

Castillo said he made the payments to avoid problems with law enforcement.

On Aug. 26, an undercover agent paid $20,742 in cash to Castillo and his wife for a shipment of ropa usada.

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

Castillo didn’t submit a Shipper’s Export Declaration for the ropa usada, according to the criminal complaint, or report the cash transaction as required by law.

Homeland Security Investigations arrested Bertha on Thursday, when agents raided Oro Ropa Usada. She’s charged with money laundering, smuggling goods from the United States and harboring people without legal status.

Castillo surrendered on Friday morning. He’s charged with money laundering and smuggling goods from the United States.

They appeared in court Friday afternoon for a bond hearing.

Castillo — dressed in gray sweatpants and a gray sweatshirt — shuffled across the courtroom wearing pink handcuffs.

When he took the witness stand, Godinez said he called Castillo on Thursday.

Agents had arrested Bertha and, while they hadn’t finalized the criminal complaint against Castillo, they wanted to detain him. Godinez told Castillo they had paperwork for him to pick up.

“He said he was out fishing,” Godinez said.

After consulting with his attorney, Castillo surrendered on Friday morning, less than 24 hours later.

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

The money had been wrapped in rubber bands, Godinez said, which can be an indicator of criminal activity.

Agents hadn’t counted or deposited the money yet, Godinez said, but they believed Castillo had $100,000 to $300,000 at the house.

Members of the Castillo family, who sat in the gallery, audibly scoffed at Godinez’s numbers.

Attorney Oscar Vega of McAllen, who represents Bertha, said his client told U.S. Pretrial Services that she had $75,000 in cash at home.

How they obtained the money and why they kept cash at home remains unclear.

Assistant U.S. Attorney Patricia Cook Profit, who is prosecuting the case, urged U.S. Magistrate Judge Juan F. Alanis to hold Castillo without bond.

“That is something that is of tremendous concern to the government,” Profit said, adding that access to large amounts of cash made Castillo a flight risk.

Alanis noted that neither Castillo nor his wife had any criminal history. They’re both United States citizens and longtime residents of McAllen. And the government had already seized the cash.

“They’ve not been convicted of anything,” Alanis said. “At this point.”

A report from U.S. Pretrial Services recommended the court set bond at $75,000 with no cash deposit required.

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.

Profit, though, requested a stay. As a result, they will spend the weekend in jail.

“The government is going to appeal it. Why? I don’t know why. I have no idea,” said Salinas, the attorney who represents Castillo. “Maybe because it was grumpy Friday and that’s why they wanted to do it.”

A federal district judge may review the bond decision next week.

“I can’t see why any of the three district judges that may hear this would not agree,” Salinas said, “and approve the recommendation made by Judge Alanis.”