U. S. Department of Justice
U. S. Attorney’s Office
Southern District of Texas
Donald J. DeGabrielle, Jr. •United States Attorney

 

(LAREDO, Texas) –   Former Laredo Police Department (LPD) Chief, Agustin Dovalina III, has pleaded guilty to extortion, United States Attorney Don DeGabrielle announced today.
 
At a hearing before U.S. District Judge George P. Kazen this afternoon, Dovalina, who retired as the chief of the LPD earlier this week, admitted to accepting approximately $13,500 in cash and gifts to take official action to shield the illegal “8-liner” gambling activities from law enforcement scrutiny. 

As Chief of Police, Dovalina was a public official responsible for overseeing the activities of Lt. Eloy Rodriguez and Sgt. Alfonso Santos.  Rodriguez was assigned and in charge of white collar crime enforcement, including 8-liner investigations, while Santos was one of two sergeants responsible for the investigation of major drug trafficking organizations operating within the Laredo area.  Chief Dovalina knew and associated with both Santos and Rodriguez.

Around November 2003, before the initiation of the federal investigation, Rodriguez and the operator of an 8-Liner gambling business in Laredo, who later became a cooperating witness (CW), established a relationship in which the operator provided cash and benefits to Rodriguez.  Rodriguez introduced Santos to the CW in June 2005 and Santos also began receiving cash and benefits.  In addition to the routine cash payments made to Rodriguez and Santos, the witness also paid for golf fees, lunches, outings to Xoticas and other expenses.  The golfing events and lunches eventually led the witness to meet Dovalina.

The government’s evidence proffered to the court today shows that in January 2006, with Santos acting as the middleman, the CW provided Dovalina funds to pay golf tournament fees and to purchase a golf bag.  As the relationship progressed, when Dovalina needed funds, Santos would arrange lunch meetings between the CW and Dovalina.  On June 22, 2006, Dovalina received $5,000 from the CW, and on Sept. 25, 2006, Dovalina received a second $5,000 payment.  Both events were captured on audio and videotape.  On Nov. 8 and 9, 2006, Dovalina meet the CW for lunch and through Santos and Rodriguez thereafter received a total of $2,000 from the CW.  Dovalina’s lunch meeting with the CW prior the delivery of the $2,000 bribe payments was also captured on audio and videotape.  The recordings prove that in exchange for the bribe payments, Dovalina offered, among other things, to re-divide the sectors at LPD to keep Rodriguez and Santos in their positions to oversee the CW’s illegal 8-liner business and to close down one of the CW’s business competitors. 

In recorded conversations, the CW repeatedly told Dovalina he was illegally paying out more than $5 cash winnings at his 8-liner business, in violation of law.  Nevertheless, after an initial LPD raid in 2003, Dovalina never ordered the CW to be arrested or to have his business on Calton Road raided by LPD.

At today’s hearing, Dovalina admitted receiving the two $5,000 bribe payments.

Santos and Rodriguez, who had been charged earlier this year for their role in the extortion scheme, have both pleaded guilty and are pending sentencing. 

The maximum penalty for extorting anything of value under color of official right to perform or not perform an official duty (Hobbs Act) conviction is 20 years imprisonment and a $250,000 fine.   Kazen has ordered a presentence investigation and will set a sentencing date upon completion of the investigation.  Dovalina has been released on a $100,000 bond on the condition that bond is signed by two co-sureties.

This case was prosecuted by Assistant U.S. Attorney Michael Wright and investigated by the Laredo Office of the FBI.

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