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Press Release

San Antonio Man Sentenced to 76 Months in Federal Prison for Wire Fraud and Tax Evasion

For Immediate Release
U.S. Attorney's Office, Western District of Texas

In San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.

In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.

On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return.  According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities.  By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money.  Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme.  Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service.  He has since remained in federal custody.

Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.

IRS-Criminal Investigation special agents investigated this case.  Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.

Updated June 25, 2019