McAllen Mayor Faces Federal Charges Related to Second-Hand Clothing Business
The mayor of McAllen, Texas, is currently confronting serious federal accusations of money laundering and smuggling tied to his second-hand clothing operation. His wife was also arrested in connection with the case, which led law enforcement to conduct multiple raids on clothing warehouses throughout the city. During these operations, several migrants were apprehended by agents from U.S. Immigration and Customs Enforcement.
On Friday, McAllen City Commissioner Rodolfo “Rudi” Castillo appeared before a U.S. Magistrate Judge, who formally charged him and set his bond at $100,000. His wife, Bertha, faced similar charges with her bond being set at $75,000.
The investigation reportedly began back in August when a federal informant spoke with Castillo about purchasing second-hand clothing and smuggling activities. This conversation was recorded by Homeland Security Investigations. During the call, Castillo allegedly indicated that he intended to bypass reporting requirements for exporting goods to Mexico, suggesting he might bribe Mexican federal police to avoid complications.
Castillo claimed to have paid 20,000 pesos, roughly $1,000, as a way to evade any issues with police in Mexico. He further asserted that if any items were seized, customers would receive a 50% refund of the item’s value.
In Mexico, there are strict regulations on importing and selling second-hand clothing, making it difficult to obtain the necessary licenses. For years, the second-hand clothing trade has often operated in secrecy, sometimes working directly with corrupt law enforcement or even local drug cartels.
According to federal authorities, they contacted Bertha, who was acting as a secret agent for HSI, to set up a sale involving cash payments and transportation of used clothing to Mexico. They arranged a meeting at Castillo’s business, Oro Ropa Usada, where agents eventually handed over $20,700 for the clothing shipment.
On September 2, law enforcement intercepted a tractor-trailer that had collected used clothing from Orolo Pausada. During their search, agents uncovered not only second-hand clothes but also motor oil and food items. It was revealed that import documentation had not been properly filed. Federal authorities later seized 57 containers of veiled clothing, over 300 bottles of motor oil, and more than 200 boxes of food in additional searches.
Then on Thursday, federal agents executed a search at the homes associated with Orolo Pausada and Castillo. Several undocumented immigrants working at the business were also detained during the operation.
