Breaking News: Former Houston Livestock Show and Rodeo VP Pleads Guilty to Wire Fraud
Michael Wayne Galvan, once a prominent figure at the Houston Livestock Show and Rodeo, has admitted to committing wire fraud, potentially leading to a prison sentence.
Galvan, 61, was taken into custody last October after being accused of deceiving investors out of almost $3 million while operating as a high-end contractor.
Authorities reveal that Galvan leveraged his position within the rodeo organization to target victims, including several HLSR executives.
Under false pretenses, Galvan persuaded investors to provide him with short-term loans with the promise of 10 to 12 percent interest returns through his construction company, MGB Builders.
Instead of using the funds for construction materials as claimed, Galvan diverted some of the money to repay previous debts and interest to other lenders.
The elaborate scheme fell apart once Galvan ran out of resources and potential victims.
Galvan is set to be sentenced by U.S. District Judge Charles Eskridge in December and could face up to 20 years in federal prison, a $250,000 fine, and the obligation to provide full restitution to those he defrauded.
It was the FBI who spearheaded the investigation that led to Galvan’s guilty plea.