McAllen's City Commissioner for Place 4, Rodolfo Castillo, is accused of using his used clothing business as a front for a smuggling operation.

A federal criminal complaint, obtained by CHANNEL 5 NEWS, details an investigation into Rodolfo and Bertha Castillo that included confidential informants and undercover agents.

Rodolfo and Bertha Castillo had a bond hearing on Friday.

The court heard testimony from a Homeland Security Investigations special agent, who said he had been part of the investigation for two months.

The judge granted the couple bond. Bertha's bond was set at $75,000 and Rodolfo's bond was set at $100,000.

The prosecution was seeking for detention without bond for the Castillo's and have filed an appeal. Rodolfo and Bertha will remain in custody of the U.S. Marshal's until a judge hears the appeal at a later time.

On August 8, 2025, a confidential informant contacted Rodolfo Castillo through WhatsApp.

According to the complaint, Castillo admitted he avoids reporting merchandise entry into Mexico to evade detection.

In that recorded phone call, the document states, Castillo told the informant he had not encountered an issue with his merchandise getting seized in years and "everyone is getting paid," suggesting there wouldn't be any problems.

He told that informant that he made payments to various groups, including "corrupt Mexican law enforcement officials." Castillo specifically mentioned paying $20,000 pesos to Harfuch's Police Department.

Castillo allegedly stated that he manages the shipping process, while his wife, Bertha, handles sales.

On August 26, 2025, an undercover agent called Bertha Castillo. During the call, the undercover agent discussed with Bertha an arrangement for cash payments to purchase used clothing intended for shipment to Mexico. Bertha said the payment transaction would happen at her warehouse, Oro Ropa Usada.

Later that same day at their business, Oro Ropa Usada, the undercover agent gave the couple with $20,742 in cash. The complaint alleges Bertha Castillo placed the money in her purse. Agents followed the couple to their home in McAllen, where Bertha allegedly went into their home with the money.

CHANNEL 5 NEWS searched Hidalgo County records for the couple's property. Four properties appeared to be owned by the same couple.

One of the properties matched the address of McAllen City Commissioner for Place 4, Rodolfo Castillo, as stated on his application for a place on the 2023 General Election Ballot.

On September 2, 2025, HSI surveillance spotted a semi-trailer leave Oro Ropa Usada and traveled to the Pharr Port of Entry.

CBP officers escorted the driver to a secondary inspection. During questioning, the driver allegedly admitted he had been transporting goods for Castillo for approximately 18 months.

He stated Castillo only provided him with Mexican importation documents, which contained blank fields and lacked a description of the items in the trailer.

According to the criminal complaint, the trailer contained 507 bales of used clothing, 373 containers of motor oil, and more than 500 boxes and bags of Indian food.

The driver said the value of the merchandise was $250,000.

On September 4, 2025, HSI agents interviewed Rodolfo and Berta Castillo at their warehouse.

Castillo allegedly told agents the shipment's value was only $75,000.

He added the most cash he has ever been given by a customer is $8,500, which the complaint notes contradicts the $20,742 cash payment he and his wife received from an undercover agent on August 26, 2025.

When asked about the export documentation, Castillo admitted he did not file a Shipper's Export Declaration (SEDs) to the federal government, something that is required for shipments valued over $2,500.

The complaint states, a review of federal export records revealed that Oro Ropa Usada and Rodolfo Castillo had filed 158 Shipper's Export Declarations (SEDs) between 2009 and 2021.

Castillo claimed those previous SEDs were filed with the help of a broker, and added he believed the responsibility for filing the documentation fell on his Mexican customers.

According to the complaint, agents asked Castillo if he had ever filled out IRS Form 8300. He responded he had not, stating that he never needed to do so. 

Castillo said he was aware of the form and it's requirements. 

Under U.S. law a person is required to report cash payments over $10,000 to the IRS by filing a 8300 form. 

Castillo was asked if he had ever received more than $10,000, according to the complaint, Castillo said his customers always made payments below $10,000. The complaint notes his statements contradicts the $20,742 cash payment he and his wife allegedly received from an undercover agent on August 26, 2025.

On October 2, 2025, HSI special agents raided Oro Ropa Usada.

They found two Mexican citizens were working in the U.S. illegally.

The individuals stated Bertha Castillo paid them in cash weekly.

Channel 5 News has reached out to Rodolfo for comment. All phone calls went straight to voicemail.

The city of McAllen has released the following statement regarding certain law enforcement activity:

"The City of McAllen is aware of recent federal law enforcement activity involving individuals who may have a personal or professional connection to the City of McAllen. These operations are solely the work of federal agencies and are not related to the City of McAllen in any capacity.  

The City does not have any knowledge of, participation with, or connection to the activities under investigation. These matters are wholly independent of the City’s operations, duties, and functions.  

All inquiries regarding these matters should be directed to federal law enforcement agencies."