Victoria contractor admits to defrauding investors of millions in material scheme

HOUSTON - A 61-year-old man has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Michael Wayne Galvan, operating as a high-end contractor under MWG Ventures LLC dba MGB Builders, fraudulently obtained over $2.8 million from at least six private investors. In some cases, Galvan found future victims when he worked as a vice president of the Houston Livestock and Rodeo Organization.

From February 2016 to March 2018, Galvan used his position with the rodeo to find victims, many of whom were in leadership positions. He solicited short-term loans by offering opportunities to earn 10 to 12 percent interest through his contracting business. Galvan falsely represented he would use the money to purchase exotic tiles and granite from China and other overseas countries for his construction business.

As part of his plea before U.S. Magistrate Judge Rick Bennett, Galvan admitted he did not use the money for its intended purpose. The scheme unraveled when he ran out of victims and money. In total, he defrauded multiple victims of approximately $2.8 million.

U. S. District Judge Charles Eskridge will impose sentencing Dec. 5. At that time, Galvan faces up to 20 years in federal prison and a possible $250,000 maximum fine as well as full restitution to his victims.

He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation.

Assistant U.S. Attorneys Christian Latham and Thomas Carter are prosecuting the case.