Corporate and public corruption in South Texas has been a recurring issue, involving various types of offenses such as bribery, healthcare fraud, and embezzlement

. Recent cases include a federal indictment against Congressman Henry Cuellar for bribery and money laundering, and a conviction of a South Texas investment promoter for multi-million-dollar fraud. The region has also seen numerous public officials convicted of crimes including accepting bribes from drug traffickers and fraud schemes. 

Examples of recent and past cases

• U.S. Congressman Henry Cuellar: Indicted on bribery, unlawful foreign influence, and money laundering charges in May 2024.
• Healthcare Fraud: In a national health care fraud takedown in June 2025, nearly 50 people were charged in the Southern District of Texas.
• South Texas Investment Promoter: In 2018, a Corpus Christi investment promoter was sentenced to 25 years for stealing millions from clients and using the funds for personal expenses like gambling and a house mortgage.
• Public Officials: Historically, the Rio Grande Valley has had a high number of public officials convicted of federal crimes. This includes several sheriffs convicted of receiving bribes from drug traffickers.
• Houston ISD Corruption: In April 2025, a former chief operating officer of the Houston Independent School District (HISD) was found guilty in a multi-million-dollar fraud scheme.
• Judicial Corruption: In a past case, a former state judge in South Texas was sentenced to six years in prison for taking bribes in exchange for favorable rulings. 

Types of corruption

• Bribery: Public officials accepting money or other benefits in exchange for favorable actions.
• Money Laundering: Using illegal funds to conceal their origins.
• Embezzlement: Stealing funds, often from clients or public money.
• Healthcare Fraud: Schemes involving fraudulent billing of federal and private healthcare programs.
• Fraudulent Schemes: Misuse of funds or fraudulent contracts in public works or other projects. 

How to report corruption

• Contact local law enforcement or the Public Integrity Section of the district or county attorney’s office.
• Report to the Texas Rangers Public Integrity Unit at rangers@dps.texas.gov.
• Report to the Texas Ethics Commission. 
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  South Texas
   has a notable history of both public and corporate corruption, involving cases of large-scale fraud, bribery, and kickback schemes. Recent federal investigations have targeted a range of illicit activities, from healthcare fraud to contractor bribery and misuse of public funds. 
  
  Notable Cases of Corporate and Public Corruption in South Texas
  Recent cases prosecuted by the U.S. Attorney’s Office for the Southern District of Texas highlight ongoing efforts to combat various forms of financial crime. 
  Healthcare Fraud In one of the largest cases, nearly 50 individuals were charged in a national health care fraud takedown, with cases in the Southern District of Texas involving a $110 million hospice fraud and kickback scheme. In another, a president of an insurance brokerage firm was convicted in a separate $23.3 million Affordable Care Act fraud.
  Government Contractor Bribery A U.S. Customs and Border Protection (CBP) officer pleaded guilty to a bribery scheme, steering contracts to a company in exchange for kickbacks totaling over $443,000. Similarly, a Houston ISD official and a contractor were found guilty in a nine-year, multimillion-dollar fraud scheme.
  Public Official Misconduct The region has a history of public corruption, with numerous officials convicted of federal crimes related to drug smuggling, vote stealing, and bribery. Recent examples include the mayor and city manager of Edcouch who were indicted and sentenced for a pay-to-play scheme involving a marketing firm.
  COVID-19 Relief Fraud Several business owners in South Texas were charged with falsifying tax and business documents to inflate the amount of financial aid they could receive from Small Business Administration (SBA) aid programs.
  University Financial Irregularities A state audit at Texas Southern University (TSU) uncovered nearly $400 million in questionable invoicesand significant operational weaknesses, prompting the Texas Governor to authorize a criminal investigation by the Texas Rangers. 
  
  Reporting Corruption
  Federal, state, and local agencies encourage citizens to report instances of fraud, waste, or abuse. 
  Federal Agencies Reports can be made to agencies like the FBI or the U.S. Attorney’s Office for the Southern District of Texas, which has a specific Whistleblower Non-Prosecution Pilot Program for corporate and business-related criminal conduct.
  State AgenciesThe Texas Rangers’ Public Integrity Unitinvestigates crimes by state officers/employees and public corruption allegations; contact them via email or their website.
  The State Auditor’s Office operates a hotline to report fraud, waste, or abuse in state agencies and institutions of higher education at 1-800-TX-AUDIT or via their website.