A federal grand jury has indicted Hector Perez, 34, and Flavio Perez, 29, both from Stockton, on charges of wire fraud conspiracy. Hector Perez faces additional charges of wire fraud and aggravated identity theft. Acting U.S. Attorney Michele Beckwith announced their arrest on June 17, 2025.
Court documents reveal that the brothers were involved in a wire fraud conspiracy targeting at least four victims between May 2018 and November 2020. The victims were invoice factoring companies, which provide businesses with immediate cash flow by purchasing outstanding invoices.
The indictment alleges that the Perez brothers created fake corporate entities to sell fraudulent invoices to these companies. As a result, money was transferred to bank accounts controlled by the defendants. The factoring companies often received little or no payment for these fake invoices. Payments made to disguise the fraud typically came from accounts under fictitious names.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Denise N. Yasinow and Matthew Thuesen are leading the prosecution.
If convicted, Hector Perez could face up to 20 years in prison and a $250,000 fine for wire fraud and conspiracy charges, plus an additional mandatory two-year sentence for aggravated identity theft. Flavio Perez could receive up to 20 years in prison and a $250,000 fine for conspiracy. Sentencing will be determined based on statutory factors and Federal Sentencing Guidelines if they are found guilty beyond a reasonable doubt.
