Full Breakdown
San Diego Men Plead Guilty in $3.5 Million Charity Fraud Scheme
3/13/2026, 7:56:35 AM
Overview of the Fraud Scheme
Noly Hermoso Ilarde, 57, of San Diego, and Martin Jose Rebollo Jr., 58, of Chula Vista, have pleaded guilty to federal charges related to a fraudulent charity scheme that misappropriated approximately $3.5 million intended for youth softball programs. The two men operated under the guise of "Chula Vista Fast Pitch," a charity that falsely claimed to support youth softball through concession sales at Petco Park and Snapdragon Stadium. Their operation spanned from 2016 to 2023, during which they pocketed the majority of the funds raised.
Mechanics of the Scheme
Ilarde and Rebollo's scheme involved securing agreements to sell concessions at the two sports venues, with the understanding that around 10% of the sales would be donated to the purported charity. However, the charity did not exist, and the funds were instead used to pay themselves and a small number of workers, who were compensated about $50 per game in cash. The remaining profits were split between Ilarde and Rebollo. According to federal prosecutors, the fake charity received approximately $3.5 million from Delaware North, which manages concessions at Petco Park, and over $250,000 from Aztec Shops, responsible for concessions at Snapdragon Stadium.
Legal Proceedings and Admissions
Ilarde pleaded guilty to conspiracy to commit wire fraud on March 11, 2026, while Rebollo had previously entered a guilty plea in December 2025 for the same charge, along with filing a false tax return and Social Security fraud. Rebollo's illicit gains exceeded $1.5 million, which he failed to report to the IRS. The maximum penalty for the wire fraud conspiracy charge is 20 years in prison.
Impact and Implications
The fraudulent activities of Ilarde and Rebollo not only deprived potential youth softball programs of critical funding but also undermined public trust in charitable organizations. Their case highlights the importance of oversight and accountability in nonprofit operations, particularly those that rely on volunteer labor and community support.
Official Statements & Responses
The U.S. Attorney's Office confirmed the guilty pleas and emphasized the seriousness of the fraud, stating that such schemes erode community trust in legitimate charitable efforts. The investigation was notably initiated following reports by Voice of San Diego, which played a crucial role in exposing the fraudulent activities.
Criticism & Opposition
Critics of the scheme have pointed out the broader implications of such frauds on community-based initiatives. The existence of a legitimate charity with a similar name that dissolved in 2014 raises concerns about the potential for confusion among donors and volunteers, further complicating the landscape of charitable giving in the region.
What's Next
Sentencing for Rebollo is scheduled for June 5, 2026, where he may face significant prison time for his role in the fraudulent scheme. The case continues to draw attention to the need for stricter regulations and oversight of charitable organizations to prevent similar incidents in the future.
