A couple facing wire fraud charges for their part in the expanding bribery probe of a former Texas state judge pleaded not guilty in federal court on Monday.

Armando and Karina Pena entered their pleas before U.S. Magistrate Felix Recio in Brownsville.

An indictment says the Penas wired $1,800 from their Arkansas home to Texas for then-state District Judge Abel Limas to change Armando Pena’s parole terms. Court records show Pena is serving eight years’ probation for aggravated assault and wanted to report to his probation officer by mail.

Karina Pena is free on bond, but Recio delayed Armando Pena’s Monday hearing until Thursday so his lawyer could determine the status of his aggravated assault charge. The federal charge jeopardized Armando Pena’s deferred adjudication and probation.

Limas pleaded guilty in March to racketeering and is to be sentenced in October. A federal investigation has shown he accepted thousands of dollars to appoint attorneys and grant favorable rulings. The Penas were the latest of several people, including lawyers and a former state legislator, arrested in connection with the case.

If you have been charged with a crime such as Wire Fraud, Bribery, Racketeering,  contact the Law Office of Robert I. Kahn at (210) 225-6600 for a free consultation.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

A San Antonio man pleaded guilty Thursday to charges that he defrauded several people out of hundreds of thousands of dollars in a home-loan and investment scheme.

Richard Morin, 50, entered the guilty plea to wire fraud, admitting to Chief U.S. District Judge Fred Biery that he used two businesses, Sarmore Management and Morin Properties, as part of his scheme in buying and selling distressed properties.

His plea deal said the scheme resulted in losses to investors of $853,129, but his lawyer, Roy Barrera Sr., told Biery the losses are closer to $390,000 after taking into account that Morin gave investors homes, vehicles and even a Rolex watch as part of his efforts to pay them back.

“He began to rob Peter to pay Paul,” Barrera said after the hearing.

The scheme involved several homes Morin bought using “hard money” lenders, who give short-term, high-interest loans, court records said.

Morin sold many of the homes through long-term owner financed notes.  With owner-financed notes, Morin became the lender and collected the monthly mortgage payments.  At the same time, Morin solicited investors to fund the purchase of the homes and to repair them.

Court records said Morin promised the investors quick returns, and his business model called for repairing the homes, selling the properties through owner-financed notes, and then selling the notes for a profit.

In late 2006 and into 2007, he was unable to sell any of the owner-financed notes because of market conditions and other factors.

Court records said he kept collecting money from investors but did not use the funds as promised.

Morin told Biery he did his best to sell the properties, but could not.

“I shouldn’t be here in the first place,” Morin said.  “I’m very embarrassed and humbled to be here, sir.”

Biery set sentencing for Aug. 26.  Morin faces up to 20 years in prison.

When indicted, Morin was already serving a three-year state prison sentence from a 2009 case, a home-loan scam in which he got people into homes he did not really own.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions