CORPUS CHRISTI, Texas — A former high-ranking Corpus Christi political operative struck a plea agreement in connection with the bribery and money laundering charges leveled against U.S. Rep. Henry Cuellar and his wife, Imelda.
Florencio "Lencho" Rendon served as chief of staff to former Corpus Christi-based U.S. Rep. Solomon Ortiz Sr. for almost 25 years and is currently based in San Antonio.
He owns two consulting companies, one of which pocketed $540,000 from February 2016-January 2019 as part of the alleged scheme. However, almost half of that money was paid out to the Laredo-based congressman, his wife, and co-conspirator Colin Strother, Cuellar's former campaign manager.
For his part, Rendon was charged with conspiracy to commit money laundering Feb. 21, and accepted a plea deal March 15. The deal came to light recently, after federal court documents pertaining to the cases were unsealed.
Cuellar and his wife were indicted on money laundering and bribery charges and taken into custody May 3 after a federal investigation accused them of accepting nearly $600,000 in bribes from Azerbaijan's state-controlled energy company and Mexico-based Banco Azteca from 2014-21. Azerbaijan is a country that sits along the border of Europe, Asia and the Middle East.
In exchange for the money, Cuellar reportedly acted to benefit both Azerbaijan's and Banco Azteca's standings in the U.S.
Rendon turns on Cuellar
In support of the U.S. government's case against Henry and Imelda Cuellar, Rendon told authorities as part of his plea agreement that the money his company was paid was the result of criminal activity and that Henry Cuellar had orchestrated the bribery scheme.
He also confessed that no one involved -- neither he nor Imelda Cuellar nor Strother -- did any work that would have legitimately generated them the income they were paid, and that to his knowledge, the arrangement served to link Cuellar and Banco Azteca monetarily so the former could help the latter with its regulatory issues in regards to remittances.
He made it clear in his plea that the payments were quid pro quo "in exchange for official acts requested of (Cuellar)."
The conspiracy reportedly lasted for about seven years, according to court documents, beginning when Rendon and Cuellar attended a conference in Mexico City in October 2015 and ending with Rendon being served a subpoena in January 2022.
How it happened, according to Rendon
According to Rendon's plea agreement, Cuellar invited him to breakfast while both men were in Mexico City for a conference in October 2015. Cuellar wanted to discuss a consulting contract opportunity with Banco Azteca, a Mexican bank reportedly looking to enter into a "correspondent banking relationship with a U.S. bank to . . . transfer . . . money from Mexican workers in the United States to their relatives in Mexico."
After Rendon met with a high-ranking Banco Azteca official, a draft of a contract was drawn up listing a limited-liability company (LLC) owned by Imelda Cuellar as the "consultant," and an unnamed U.S.-based media company owned by the same group as Banco Azteca as the beneficiary of the LLC's services.
Rendon told federal authorities it was his understanding that the agreement with Banco Azteca was a sham consulting contract and merely a way for Banco Azteca to "funnel" money to Cuellar.
It was originally agreed that Rendon would be paid $12,000 a month "retainer fee" for two years according to the agreement. Of that $12,000, Cuellar instructed Rendon to pay Imelda Cuellar $10,000. When Rendon told Cuellar he "did not believe it was a good idea for him to make the payments to (Imelda Cuellar) directly," he said Henry Cuellar then instructed him to transfer the money to Strother, who would give it to Imelda Cuellar. Strother and Rendon would then each receive $1,000 for their roles in the deal.
But after a fourth co-conspirator emerged, needing to be "taken care of" for his role in putting the parties together, Rendon told Cuellar he wanted to pocket more than $1,000 a month for his part in the scheme. The congressman's solution was to re-approach Banco Azteca for a $15,000 monthly payment instead of $12,000, to which the bank agreed.
The consultant company was also changed from Imelda Cuellar's to one of Rendon's companies. Rendon signed the contract putting the deal in motion in December 2015.
From February 2016-January 2019, $540,000 was paid to Rendon's company; Rendon's companies then paid Strother $261,000.
Rendon also told authorities that Henry Cuellar asked him to hire one of his adult children in an attempt, he believed, to recover the rest of the money that hadn't been paid to Imelda Cuellar.
Cuellar has two adult daughters: Christina and Catherine, but it is unclear which one the agreement indicates.
Rendon said a verbal agreement was reached between Cuellar's daughter and Rendon where she would collect a $2,000 consulting fee, and she was given one $2,000 check before Rendon was served with a federal grand jury subpoena in January 2022.