VMS Transport Owner Armando Martinez Varela Accused of Paying B-1 Drivers 25 to 50 Cents a Mile

Federal authorities announced charges on November 10, 2026, against Armando Martinez Varela, owner of VMS Transport LLC. Prosecutors allege his company paid B-1 Visa drivers 25 to 50 cents per mile to haul domestic freight.

The drivers allegedly picked up trailers in Laredo and delivered shipments within the United States. Varela pleaded not guilty on November 5 and requested a jury trial.

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

VMS records allege 1,044 domestic trips by 57 drivers

According to the indictment, company records covered 1,044 domestic transportation trips involving 57 B-1 drivers between February 20 and May 15, 2026. The alleged work took the drivers from Laredo to destinations across the country.

The charges say the drivers received 25 to 50 cents per mile. Authorized drivers doing similar work received 70 cents per mile, according to the allegations. Prosecutors estimate the arrangement reduced the company’s labor costs by approximately $299,606.

Those figures describe the alleged operation. The indictment accuses Varela of recruiting drivers admitted under B-1 status for freight movements that stayed within the United States.

Driver interviews and messages form part of the allegations

Homeland Security Investigations examined drivers’ visas and freight manifests at an immigration checkpoint north of Laredo. Investigators interviewed four B-1 drivers who allegedly said they worked for VMS and hauled domestic freight at company employees’ direction.

The drivers told investigators they received payment in cash or by check. They also said between 30 and 60 drivers worked for the carrier, most of them B-1 visa holders, according to the complaint.

The complaint identifies dispatcher Rodrigo Trejo in communications about domestic loads. Investigators cited WhatsApp messages directing a source to commit cabotage and messages between Trejo and sources about picking up domestic freight. Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christine A. Cortez is prosecuting the case.

B-1 status does not authorize employment hauling domestic freight

B-1 status permits some temporary business activities, including qualifying international transportation. It does not permit employment transporting freight solely within the United States, the Justice Department said in its announcement of the charges.

The alleged movement of freight between two U.S. points is cabotage. Prosecutors charged Varela with employing unauthorized workers, inducing unlawful entry or residence, harboring aliens and making materially false statements to federal investigators.

Varela faces a December pretrial conference in Laredo

Varela was arrested September 1 and released on a $75,000 bond with a $500 cash deposit, according to court records. If convicted, he faces up to 10 years in federal prison and a possible maximum fine of $250,000.

An indictment is a formal accusation, not evidence. Varela is presumed innocent unless convicted through due process.

The final pretrial conference is scheduled for December 3, 2026, in federal court in Laredo. Watch that hearing for the next step in the case.