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McAllen city commissioner indicted on federal smuggling and money laundering charges

McAllen city commissioner indicted on federal smuggling and money laundering charges
1 month 1 week 2 days ago Wednesday, October 29 2025 Oct 29, 2025 October 29, 2025 4:30 PM October 29, 2025 in News - Local

McAllen Place 4 City Commissioner Rodolfo “Rudy” Castillo was indicted Tuesday alongside his wife on federal smuggling and money laundering charges, court records show.

Castillo and his wife — Bertha Alicia Castillo — were also indicted on a charge of conspiracy to defraud the United States.

Bertha faces additional charges of bringing in and harboring undocumented people, federal court records show.

The couple — who own the used clothing store Oro Ropa Usada in South McAllen — are accused of using their business as a front for a smuggling operation.

RELATED STORY: McAllen city commissioner out on bond following arrest on federal smuggling and money laundering charges

According to the indictment, a shipment that originated from Oro Ropa Usada that contained over 174,000 pounds of used clothing — as well as nearly 469 gallons of motor oil and 302 bags of food — attempted to cross into Mexico through the Pharr port of entry without proper exporting documentation on Sept. 2.

“The only documentation the driver had was a form that was intended to be presented to Mexican customs. This form contained no date and a blank commodity description,” the indictment states.

The couple was arrested on Oct. 2 during an ICE raid at multiple locations in South McAllen that led to dozens of arrests. 

According to a criminal complaint, Castillo told a confidential informant that he “avoids reporting merchandise entry into Mexico to evade detection by authorities." 

The complaint said Castillo told that same informant that he makes payments to “various parties, including corrupt Mexican law enforcement officials,” to facilitate uninterrupted transport.

Castillo specifically mentioned paying $20,000 pesos to a police department, and that he manages the shipping process while his wife handles sales.

The Oct. 2 raid at the business led to the discovery of two employees who were identified as Mexican citizens who were working in the U.S. illegally, the complaint added.

Castillo and Bertha are currently out on bond. On Monday, Castillo said he would not resign from his position as McAllen city commissioner. 

Both suspects are set to be arraigned in November.

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