HOUSTON, Texas – Emmanuel Padilla Reyes, 35, has been ordered to prison for his role in a large-scale conspiracy to commit wire fraud in relation to the sale of hundreds of thousands of fraudulent Texas paper license plates.
According to court documents, Reyes and his co-conspirators sold over 550,000 fake 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.
Reyes was found to have 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.
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.
On May 13, Reyes pleaded guilty to his role in the scheme. 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.
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 U.S. Attorney Nicholas J. Ganjei. ‘Texas motorists deserve to know vehicles on the roadways alongside them and their families are genuinely licensed, rather than the instruments of crime.’
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 on February 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.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News