Houston man admits to million-dollar electricity fraud scheme

HOUSTON, TX -- A 51-year-old Houston resident has entered a guilty plea to conspiracy to commit wire fraud, announced U.S. Attorney Nicholas J. Ganjei.

Daniel Rodriguez-Martinez created a fictitious company to conceal the proceeds of an electricity theft scheme.

From March 2021 to May 2024, Rodriguez-Martinez and others ran the scheme by creating a fake utility company to conceal profits. They used stolen personal information, including Social Security numbers, to open electricity accounts with real providers. The stolen identities were linked to actual service addresses, allowing customers to receive power while the billing responsibility fell on unsuspecting victims.

When providers shut off service for nonpayment, the group reopened accounts under new fake identities. In exchange for uninterrupted electricity, customers paid a flat fee of $80 per month to the fraudulent company. The operation allowed participants to avoid legitimate charges while the organizers profited from the deception.

Rodriguez-Martinez admitted to creating a fake electricity services company solely to conceal the theft scheme. He received payments from clients through peer-to-peer apps such as CashApp and Zelle, then transferred the funds into a business account to mask their origin.

Rodriguez-Martinez received at least $1.4 million as a result of the scheme.

As a part of his plea, he agreed to forfeit $456,859.76 in U.S. currency as well as his interest in multiple properties.

Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for July 15. At that time, Rodriguez-Martinez faces up to 20 years in federal prison and a possible $250,000 fine.

He has been and will remain in custody pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.