Sheriff Martin Cuellar indicted for misappropriating funds

HOUSTON – The current Webb County sheriff and his assistant chief have appeared in federal court for their alleged involvement in a scheme to defraud the Webb County Sheriff’s Office during the COVID-19 pandemic, announced U.S. Attorney Nicholas J. Ganjei.

Laredo residents Martin Cuellar Jr., 67, and Alejandro Gutierrez, 47, have turned themselves in to authorities and have now made their initial appearances before U.S. Magistrate Judge Christina Bryan in Houston.    

A federal grand jury returned the now unsealed five-count indictment Nov. 19, 2025. It alleges that between 2020 and 2022, Cuellar and Gutierrez conspired with others to misappropriate WCSO funds.

According to the indictment, Cuellar, Gutierrez and former assistant chief Ricardo Rodriguez used WCSO staff and resources to run a for-profit disinfecting business during the COVID-19 pandemic. They allegedly opened Disinfect Pro Master in April 2020 and entered into service agreements with local businesses and restaurants despite having no employees or supplies of their own. The indictment alleges WCSO employees handled the company’s day-to-day operations from the sheriff’s office where they picked up schedules and equipment to conduct disinfecting services both on and off the clock with the county.

The charges also allege Disinfect Pro Master secured a $500,000 contract to clean United Independent School District schools in Laredo and completed the work using WCSO staff and resources. For more than two years, the business allegedly operated almost entirely with county employees and supplies, incurring minimal overhead.

Cuellar, Gutierrez and Rodriguez each received approximately $175,000 – one third of the profits, according to the charges. Cuellar allegedly used part of his proceeds to purchase property in Laredo. 

If convicted, Cuellar and Gutierrez both face up to 10 years in federal prison, as well as a possible $250,000 maximum fine. Cuellar is additionally charged with money laundering, which carries an additional 10 years in prison and a fine of up to $250,000 or twice the amount of property involved in the real estate transaction.

Rodriguez, 65, Laredo, previously pleaded guilty and is set for sentencing March 16. He is currently on bond pending that hearing.

FBI - San Antonio and Department of Homeland Security - Office of Inspector General conducted the investigation as part of the Laredo Border Corruption Task Force. Assistant U.S. Attorneys Heather Winter and Robert Johnson are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.