Trucking company owner charged in labor scheme involving unauthorized non-citizen drivers

LAREDO, Texas - A 56-year-old Laredo man has been indicted for allegedly employing unauthorized drivers to transport domestic freight.

Armando Martinez Varela faces charges involving employment of unauthorized workers, encouraging or inducing unlawful entry or residence, harboring aliens, and making materially false statements to federal investigators.

According to the indictment, Varela owned VMS Transport LLC and recruited drivers admitted under B-1 nonimmigrant status to transport domestic freight without authorization. The drivers allegedly picked up trailers in Laredo and delivered shipments throughout the United States.

B-1 status permits certain temporary business activities, including qualifying international transportation, but does not authorize employment transporting freight solely within the United States.

The indictment further alleges Varela arranged housing for drivers between assignments rather than having them return to Mexico.

Between Feb. 20 and May 15, VMS records allegedly showed 1,044 domestic transportation trips involving 57 B-1 visa drivers. The charges allege VMS paid these drivers 25 to 50 cents per mile, compared with 70 cents for authorized drivers performing similar work. The arrangement saved the company approximately $299,606 in labor costs, according to the allegations.

If convicted, Varela faces up to 10 years in federal prison and a possible $250,000 maximum fine.

Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christine A. Cortez is 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.