Texas Businessman Arrested for Monopolizing Used Car Transport Industry
TL/DR –
A group of South Texas businessmen, including Carlos Martinez, were found to have monopolized the transmigrante industry. This involved fixing fees and pooling revenues for the transport of used cars bought in the US through Mexico to Central America, squeezing out businesses that did not comply. Rigoberto Brown, a dual US-Mexican citizen who worked with Martinez, disappeared after being charged with conspiring to fix prices and monopolize the transmigrante forwarding business in November 2022, but was recently captured near McAllen, Texas.
Known as “the Pool”, the operation of transporting used cars from the US through Mexico for resale in Central America, has been under scrutiny along the Texas-Mexico border.
Federal prosecutors claim a group of South Texas businessmen manipulated the industry, controlling fees and revenues, and muscling out non-compliant businesses.
Accused mastermind, Carlos Martinez, a Mission, Texas, businessman, transformed a group of supposed competitors into a network of shared revenue and price-fixing. He was sentenced after admitting guilt to federal charges.
Rigoberto Brown, accused co-conspirator, was charged in 2022 but vanished until his recent arrest near McAllen, Texas.
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The alleged network was so organized that they maintained charts, spreadsheets, and regular communication to manage their operation, which was referred to amongst them as the \”empresa\” — Spanish for \”the company\”.
Federal prosecutors allege that they also manipulated relationships with licensed Mexican customs brokers, forcing other agencies to operate under them and imposing an alleged tax referred to as \”piso\” — Spanish for \”floor\”.
Brown was charged with price-fixing and conspiring to monopolize the market, both violations of the Sherman Antitrust Act. Eight co-defendants have already been sentenced, while two remain fugitives.
With this week’s arrest, Brown faces up to 10 years in prison and a $1 million fine on each Sherman Act charge. It’s unclear if he has legal representation.
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