Source: Office of United States Attorneys
HOUSTON – The final man charged 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 pleaded guilty, announced U.S. Attorney Nicholas J. Ganjei.
Emmanuel Padilla Reyes, 35, was a fugitive until authorities apprehended him in September 2024.
Reyes and co-conspirators used the internet, email and iMessage to sell fraudulent state-issued buyer tags and deliver them to buyers nationwide. As part of his plea, Reyes admitted to using at least two aliases, including another person’s name and Social Security number, to get used car dealer licenses. He used them in a scheme to fraudulently issue and sell at least 550,000 Texas temporary buyer tags without selling any vehicles.
The illegal tags pose a danger to the public and law enforcement as buyers use them to avoid registration, safety inspections and liability insurance. They can also be used to conceal identities from law enforcement. The investigation revealed fake vehicle tags gave criminals the means to create ghost cars that were invisible to law enforcement and used to commit crimes ranging from driving with no insurance to committing robberies and drive-by shootings.
In Texas, used car dealers must obtain an independent General Distinguishing Number (GDN) license via the Texas Department of Motor Vehicles’ online eLicensing portal to legally buy, sell or exchange vehicles. Licensed dealers can access the secure eTag portal to create temporary buyer tags and may add other users to their account. At the time of the original indictment in the case, there were no restrictions on the data entered into the portal.
Reyes provided false information, such as fake identities, drivers licenses, lease agreements and business signs, in an online application portal to obtain GDN licenses for two fictitious dealerships “King’s Ranch Autoland” and “Texas Motor Company.” Reyes and his co-conspirators then advertised Texas buyer tags for sale on social media platforms like Facebook and Instagram.
U.S. District Judge George C. Hanks will impose sentencing July 23. At that time, Reyes faces up to five years in prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
Co-defendants Leidy Areli Hernandez Lopez, 44, 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.