Democratic Rep. Henry Cuellar and his wife have been indicted on multiple federal charges by the Justice Department. The charges allege that they accepted hundreds of thousands of dollars in bribes from an oil company owned by the government of Azerbaijan and a Mexican bank.
A 54-page indictment has been unsealed in federal district court in Houston, charging Cuellar with 14 counts that include conspiracy, bribery, and money laundering. Additionally, he is accused of acting as a foreign agent to benefit the government of Azerbaijan.
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Cuellar and his wife, Imelda Rios Cuellar, appeared before a federal magistrate judge in Houston. During the hearing, they both pleaded not guilty and were subsequently released on an unsecured bond. The jury trial is tentatively scheduled to commence on July 8.
During a press conference held outside the court on Friday, the congressman confidently asserted his innocence alongside his wife. He expressed his firm belief that he will emerge victorious in the upcoming re-election in the fall.
Federal prosecutors claim that Cuellar and Imelda Cuellar received at least $598,000 in bribes from an Azerbaijani oil and gas company and a Mexican bank. They assert that the bribes were disguised as consulting contracts, funneled through intermediary companies, and ultimately ended up in shell companies owned by Imelda Cuellar. The indictment states that the congressman’s wife had minimal or no genuine involvement in the supposed consulting work.
Cuellar allegedly accepted bribes in exchange for leveraging his position of power and influence to further the interests of Azerbaijan and an undisclosed foreign bank, according to prosecutors.
NBC News reported that the indictment was expected on Friday. Prior to the charges being made public, the congressman released a statement acknowledging that he and his wife were facing criminal counts and maintaining their innocence.
In a statement, the congressman shared that he had consulted with the House Ethics Committee for legal guidance prior to making any decisions. However, the statement did not specify the exact actions he was referring to. He mentioned that the committee provided a written opinion, along with one from a national law firm. Cuellar and his wife also expressed their desire to meet with prosecutors in Washington, D.C. to provide an explanation of the facts, but they were declined the opportunity to discuss the case with them.
Democratic Leader Hakeem Jeffries will be taking leave as the top Democrat on the Homeland Security Appropriations Subcommittee while the case is ongoing, according to a spokesperson.
In a statement, Christie Stephenson, spokesperson for Jeffries, acknowledged Congressman Henry Cuellar’s dedication to public service and his esteemed position within the House Democratic Caucus. Stephenson emphasized that like any American, Cuellar is entitled to his day in court and should be presumed innocent throughout the legal process.
The allegations in the indictment
In early 2013, the congressman and his wife embarked on a trip to Istanbul and Baku, Azerbaijan, sponsored by an organization headed by a resident of Houston. This Houston resident is the leader of two nonprofits that are committed to promoting the interests of Azerbaijan. According to prosecutors, this marked the beginning of the congressman’s association with Azerbaijan.
The energy company owned by the government of Azerbaijan provides funding to these groups.
Prosecutors claim that officials from the Azerbaijani government engaged in discussions about enlisting Cuellar to advocate for Azerbaijan’s interests in the United States Congress.
In February 2014, the Justice Department accused the Cuellars of entering into a “corrupt agreement” with a government-connected oil company. According to the allegations, the oil company agreed to make monthly payments to a shell company owned by Imelda Cuellar for supposed “strategic consulting and advising services.”
In May of the same year, investigators claimed that Cuellar had taken active measures to support the foreign government. He informed his contacts that he had inserted provisions into the National Defense Authorization Act for that year, aiming to establish a strategic framework for United States security force assistance and cooperation in the European and Eurasian regions, including Azerbaijan.
According to court documents, a diplomat from the country sent the congressman information about a land mine-clearing operation in the region that Azerbaijan opposed. This exchange of information between the two parties continued for years, as revealed by investigators.
Investigators have revealed that Cuellar and his wife were not only involved in Azerbaijan but also allegedly engaged in setting up shell companies and contracts with a Mexican retail bank as part of their efforts to launder additional funds.
Prosecutors claim that the bank had a need for a stronger reciprocal relationship with U.S. financial institutions to facilitate currency exchange. In 2015, Cuellar supposedly agreed to include specific language in House bills to endorse and enable these transactions.
According to court documents, investigators stated that from May to July 2016, Cuellar advised and pressured a high-ranking Executive Branch official, responsible for bank supervision, to take official actions that would benefit Foreign Bank-1.
According to the indictment, the Cuellars utilized a significant portion of their purportedly illegal funds to fulfill their federal and state tax obligations, as well as to cover credit card and car expenses. Prosecutors allege that they spent substantial amounts of money at various restaurants and stores. Furthermore, they reportedly made a $12,000 purchase for a “custom gown,” put down a $7,000 payment on a new car, and paid $27,000 to insurance and telecom companies.
The FBI’s search
More than two years ago, the FBI conducted a “court-authorized” search of Congressman Cuellar’s home in Laredo and campaign office in January 2022. At the time, Cuellar’s lawyer clarified that the congressman was not the subject of a federal investigation, although the search was related to Azerbaijan and several U.S. businessmen. It is now alleged that there may be a scheme involving Azerbaijan and a Mexican bank.
According to the congressman’s office, he was fully cooperative with the investigation, and Cuellar firmly denied any wrongdoing.
Henry Cuellar, who has been serving as the representative for the 28th Congressional District since 2005, successfully won a hard-fought primary challenge in the 2022 election. Cuellar, known as a moderate Democrat, faced off against immigration attorney Jessica Cisneros, who was once his intern. Despite a close race, Cuellar ultimately emerged as the victor in the runoff election. His district encompasses an area that spans from San Antonio all the way to the U.S.-Mexico border.
Cuellar, the last remaining self-identified “pro-life” Democrat in the House, made headlines in October 2023 after he recounted being carjacked by three armed assailants while returning to his home in the Navy Yard neighborhood of Washington, D.C. As a devout Catholic, this incident holds significant importance for the congressman.
