The final participant in a conspiracy involving the sale of fraudulent Texas paper license plates has been sentenced to prison, according to U.S. Attorney Nicholas J. Ganjei.
Emmanuel Padilla Reyes, 35, admitted guilt on May 13 and was ordered by U.S. District Judge George C. Hanks to serve 60 months in federal prison. Reyes is also required to pay $22 million in restitution to the Texas Department of Motor Vehicles. Being a non-U.S. citizen, he may face deportation after serving his sentence.
During the court hearing, testimony was presented from the family of a victim killed by a vehicle displaying one of the fake tags issued by Reyes’ dealerships. The court emphasized that many other victims were affected by this 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.
Special Agent in Charge Douglas Williams of the FBI Houston Field Office stated that the case led to changes in how temporary tags are issued in Texas as of July 1. “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 his associates sold over 550,000 tags online without selling vehicles. He used stolen identities to obtain car dealer licenses for fictitious dealerships named “King’s Ranch Autoland” and “Texas Motor Company.” These fake tags allowed buyers to avoid registration and insurance requirements.
Reyes will remain detained until he is transferred to a Federal Bureau of Prisons facility.
Co-defendants Leidy Areli Hernandez Lopez, Octavian Ocasio, and Daniel Christine-Tani were also convicted and sentenced for their roles in the scheme. Lopez did not report to prison and is now considered a fugitive with an outstanding arrest warrant.
The investigation was conducted by multiple agencies including the FBI, Travis County Constable Office – Precinct 3, Houston Police Department, among others. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are handling the prosecution.
