Source: US FBI
HOUSTON – The final man in a large-scale conspiracy to commit wire fraud in relation to the sale of hundreds of thousands of fraudulent Texas paper license plates has been ordered to prison, announced U.S. Attorney Nicholas J. Ganjei.
Emmanuel Padilla Reyes, 35, pleaded guilty May 13.
U.S. District Judge George C. Hanks has now ordered Reyes to serve 60 months in federal prison and to pay $22 million in restitution to the Texas Department of Motor Vehicles. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard testimony from the family of a victim killed by a truck bearing a fraudulent paper license plate that one of Reyes’ dealerships had issued. In handing down the sentence, the court noted that there were many more victims just like this one whose lives Reyes harmed and changed, and that this was not a victimless crime.
“The defendant’s criminal scheme was not only illegal in itself, but also facilitated scores of other crimes, such as armed robberies and drive-by shootings,” said Ganjei. “Texas motorists deserve to know vehicles on the roadways alongside them and their families are genuinely licensed, rather than the instruments of crime.”
“This case led not only to arrests and prison sentences for those behind a national multimillion-dollar scheme, but it also led to changes in the way temporary tags are issued in Texas. Changes that just went into effect July 1,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “That’s impactful, and I’m so proud of our law enforcement partners and the FBI Houston case team who made it all happen.”
Reyes and co-conspirators sold over 550,000 tags using the internet and messaging apps, without selling any vehicles. He used aliases, including a stolen identity, to obtain car dealer licenses for the scheme. The fake tags allowed buyers to evade registration, insurance and law enforcement detection, enabling crimes such as robberies and drive-by shootings.
In Texas, used car dealers must obtain an independent General Distinguishing Number to access the state’s eTag portal and issue temporary buyer tags. At the time of the indictment, the system lacked data entry restrictions. Reyes used fake identities and documents to obtain licenses for two fictitious dealerships, “King’s Ranch Autoland” and “Texas Motor Company,” then advertised Texas buyer tags for sale on Facebook and Instagram.
Reyes will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
Co-defendants Leidy Areli Hernandez Lopez, 45, Octavian Ocasio, 53, and Daniel Christine-Tani, 36, were also charged and convicted in the scheme and were sentenced to prison. Lopez, also in the United States illegally, failed to report to prison. A federal grand jury returned an indictment Feb. 20 charging her with failure to surrender. Lopez is considered a fugitive, and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact the FBI at 713-693-5000.
The FBI conducted the investigation with assistance from Travis County Constable Office – Precinct 3, Houston Police Department, Texas Department of Public Safety, Harris County Sheriff’s Office, New York State Police and New York Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.