A San Antonio man – whose conversations about a scheme to allegedly defraud a U.S. Small Business program were caught on wiretap – has entered a guilty plea.

Jesus Rodriguez of San Antonio pleaded guilty to conspiracy to commit wire fraud, a crime that carries up to 20 years in federal prison, a maximum three years of supervised release and a fine of as much as $250,000. His sentencing is set for Feb. 26, but he remains free on a $30,000 unsecured bond.

Rodriguez is one of seven defendants in the case and the second to take a plea deal.

The alleged scheme involved the SBA’s HUBZone program, which is intended to support small-business growth in historically underutilized business zones by awarding federal contracts to companies based in the zones. To qualify for the program, a business must maintain its principal office in a HUBZone and have at least 35% of its employees living there.

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Businesses operating in HUBZones allegedly were targeted by San Antonio businessman Aaron Sams, who told them that he and his company could provide them with workers who purportedly lived in the zones, according to Rodriguez’s plea agreement.

In truth, the individuals were “fake employees because they had little to no contact with any company they were put on the payroll for” and “performed no actual work for any company,” the agreement says.

Most of 40 to 50 allegedly fake employees, including Rodriguez, would pay Sams a “kickback” – often 20% – from their paychecks, the plea agreement adds.

Rodriguez was fraudulently paid $452,366.34 from various HUBZone companies from the first quarter of 2017 through the third quarter of 2022, the document adds. He’s not required to pay any restitution.

He was caught on wiretap in numerous conversations with Sams in June and July 2022 talking about the scheme, the plea agreement says. They also allegedly discussed an SBA investigation into Sams and the scheme, how to prevent the agency from obtaining information and talking to fake employees, and how to keep the scheme going.

The scheme allowed companies “to seem like they were fulfilling their qualifications as HUBZone companies even when they were not, and in doing so, allowed these companies to bid and obtain government contracts that they were not eligible for,” Rodriguez’s plea deal says. The value of the contracts hasn’t been disclosed, but the seven defendants allegedly pocketed a combined $2.5 million.

“Rodriguez knew the unlawful purpose of the plan and willfully joined in it,” his plea agreement adds. He entered his plea Tuesday before U.S. Magistrate Judge Henry Bemporad.

He and the six others were indicted by a grand jury in September 2023. Federal prosecutors have agreed to drop a charge against Rodriguez – conspiracy to defraud the the United States – as part of his plea deal.

Others indicted in the case and who have pleaded not guilty are: Sams, who operated San Antonio-based Sams Contracting Consulting and Training Inc.; Beverly Smith, a Converse resident who authorities have identified as Sams’ wife; San Antonio residents Uchennaya Ogba and Barbara Sanders; and Jonathan Adams of Lawrenceville, Ga.

READ MORE: Texas woman pleads guilty to role in alleged scheme to defraud Small Business Administration program

Kristin Harrison, Sams’ sister, in August 2024 was the first defendant to plead guilty to conspiracy to defraud the U.S., which carries a sentence of up to five years in prison, as long as three years of supervised release and a maximum fine of $250,000.

Months later, she sought to withdraw her guilty plea but then backtracked.

“It was never Ms. Harrison’s intention to not accept responsibility for her actions in this matter or burden the Court with frivolous filings,” her attorney said in a February court filing seeking to withdraw her motion to withdraw the guilty plea. “Instead, there existed a miscommunication between the Defendant and prior counsel.” U.S. District Judge Orlando Garcia granted the request.

Harrison’s sentencing is set for Jan. 15.

The other five defendants have until Thursday – Thanksgiving – to enter into plea agreements. However, the date has been reset multiple times.

San Antonio attorney John Carroll, who represents Rodriguez, didn’t respond to an email seeking comment.

This article originally published at San Antonio man caught on wiretap takes plea deal in alleged SBA scheme.