Illegal Alien Faces Federal Charges for Identity Theft, Producing and Selling Counterfeit Social Security Cards, and Unlawful Gun Possession

GAINESVILLE - Derly Alvarez-Rodriguez, an illegal alien from Mexico, was indicted by a federal grand jury for allegedly trafficking counterfeit Social Security cards bearing information of real victims and possessing a pistol.

"Social Security fraud and identity theft strike at the heart of public trust and economic security. This alien's alleged conduct not only jeopardized the integrity of our nation's borders, but it also exposed unwitting victims to significant financial and legal issues stemming from the unauthorized use of their personal information," said U.S. Attorney Theodore S. Hertzberg. "My office remains committed to protecting victims and holding accountable anyone who seeks to exploit them."

"Counterfeit identification documents, including social security cards, are instruments of fraud that can upend victims' lives, fuel criminal activity, and erode the integrity of our immigration, employment, and financial systems," said Ellen Johnson, Acting Special Agent in Charge of HSI in Georgia and Alabama. "HSI will continue working alongside our partners to disrupt fraud schemes designed to profit from stolen identities."

According to U.S. Attorney Hertzberg, the charges, and other information presented in court: Between March 11, 2026 and on May 19, 2026, Alvarez allegedly sold an undercover agent three Social Security cards in exchange for $750 per card. Following the transactions, Alvarez allegedly sent the undercover agent the corresponding birth dates for the individuals listed on the cards.

Agents set up an August 5, 2026 meeting with Alvarez to purchase two additional Social Security cards. When Alvarez arrived to complete the transaction, agents arrested him on a federal criminal complaint and seized four additional Social Security cards from him. During a subsequent federal search warrant executed at Alvarez's residence, agents found a semi-automatic pistol. Federal law prohibits illegal aliens from possessing firearms.

The Social Security Administration Office of the Inspector General ("SSA-OIG") determined that all the cards purchased or seized from Alvarez were counterfeit. SSA-OIG further confirmed the Social Security numbers on each card were legitimate and associated with real people.

Following his arrest on the complaint, a federal magistrate judge denied the United States's motion to detain Alvarez. The United States immediately filed an emergency motion to stay and revoke the release order, arguing that there was a serious risk that Alvarez would flee. U.S. District Judge Richard W. Story granted both motions and ordered that Alvarez be detained in the custody of the U.S. Marshals Service without bond through the conclusion of the case.

On September 1, 2026, a grand jury returned an 18-count federal indictment charging Derly Alvarez-Rodriguez, 41, of Mexico, with seven counts of Social Security fraud, seven counts of production of false identification documents, three counts of transfer of false identification documents, and one count of possession of a firearm by an illegal alien. Today, a grand jury added two counts of aggravated identity theft, each of which carries a mandatory minimum of two years' imprisonment.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.

This case is being investigated by Homeland Security Investigations with valuable assistance from the SSA-OIG.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.