Trucking Laws · Texas · November 11, 2026

Laredo Trucking Company Owner Indicted Over 57 B-1 Visa Truck Drivers Allegedly Paid 25 to 50 Cents a Mile

By Big Rig Daily Staff

A Laredo, Texas trucking company owner is under federal indictment, accused of using truck drivers who entered the country on B-1 visitor status to haul freight from one U.S. city to another, according to a release from the U.S. Attorney's Office for the Southern District of Texas published Nov. 10.

Prosecutors identify the owner as Armando Martinez Varela of VMS Transport LLC. El Diario de Nuevo Laredo reports that he is 56 and that a federal grand jury returned the indictment. An indictment is a formal accusation, not evidence of guilt, and he is presumed innocent unless convicted.

What the indictment alleges

According to the indictment, Martinez Varela recruited drivers admitted under B-1 nonimmigrant status. The drivers allegedly picked up trailers in Laredo and delivered shipments to points throughout the United States.

Between Feb. 20 and May 15, VMS records allegedly showed 1,044 domestic trips involving 57 B-1 visa drivers. Prosecutors say the company paid those drivers 25 to 50 cents a mile, compared with 70 cents a mile for authorized drivers doing similar work. That difference allegedly saved the company about $299,606 in labor costs.

The indictment also alleges that Martinez Varela arranged housing for the drivers between assignments instead of having them return to Mexico.

What B-1 status allows

B-1 status permits certain temporary business activities, including qualifying international transportation, prosecutors say. It does not authorize employment hauling freight solely within the United States. El Diario notes that moving freight between two points inside one country is known in the industry as cabotage. Big Rig Daily has covered how one large carrier's CEO views cabotage enforcement.

The charges and possible penalty

Martinez Varela faces charges of employing unauthorized workers, encouraging or inducing unlawful entry or residence, harboring aliens and making materially false statements to federal investigators. If convicted, he faces up to 10 years in federal prison and a possible maximum fine of $250,000.

Homeland Security Investigations, part of Immigration and Customs Enforcement, conducted the investigation. Assistant U.S. Attorney Christine A. Cortez is prosecuting the case.

Wider scrutiny at the border

El Diario reports the case comes amid closer attention to Mexican truck drivers with B-1 visas crossing at Laredo. At a trade forum in Laredo, a Nuevo Leon state official said more than 300 B-1 visas had been revoked this year for drivers who use the Colombia-Solidaridad International Bridge, according to the newspaper.

Why it matters to truckers

Prosecutors put a number on the gap: 25 to 50 cents a mile versus 70 cents for authorized drivers, adding up to about $299,606 in alleged labor savings over less than three months. Carriers and truck drivers working legally compete for the same domestic freight.

Quick facts

• Company: VMS Transport LLC, Laredo, Texas.
• Alleged trips: 1,044 domestic trips, Feb. 20 to May 15.
• Drivers: 57 on B-1 visitor status, per the indictment.
• Alleged pay: 25 to 50 cents a mile, versus 70 cents for authorized drivers.
• Alleged savings: about $299,606 in labor costs.
• Maximum penalty if convicted: 10 years and a $250,000 fine.

FAQ

Has the owner been convicted?

No. An indictment is a formal accusation. He is presumed innocent unless convicted.

Can B-1 drivers haul any freight in the United States?

Prosecutors say B-1 status allows certain qualifying international transportation, but not employment hauling freight solely within the United States.

Who investigated the case?

Homeland Security Investigations, part of Immigration and Customs Enforcement.

A question for readers

Truckers, have you lost loads to rates that only make sense if someone is cutting corners on who is behind the wheel?

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