The final individual involved in a nationwide conspiracy to sell fraudulent Texas paper license plates has been sentenced to prison, according to U.S. Attorney Nicholas J. Ganjei. Emmanuel Padilla Reyes, 35, pleaded guilty on May 13 and has been ordered by U.S. District Judge George C. Hanks to serve 60 months in federal prison and pay $22 million in restitution to the Texas Department of Motor Vehicles.
Reyes is not a U.S. citizen and is expected to face removal proceedings after his imprisonment. During the hearing, testimony was heard from the family of a victim killed by a truck with a fake paper license plate issued by one of Reyes' dealerships. The court noted that there were many victims whose lives were impacted by Reyes' actions.
"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."
Special Agent in Charge Douglas Williams of the FBI Houston Field Office highlighted that this case led not only to arrests and prison sentences but also changes in how temporary tags are issued in Texas, effective July 1.
Reyes and his co-conspirators sold over 550,000 tags using online platforms without selling any vehicles. He used aliases and stolen identities to obtain car dealer licenses for two fictitious dealerships: "King’s Ranch Autoland" and "Texas Motor Company." These fake tags allowed buyers to evade registration, insurance, and law enforcement detection.
Reyes will remain in custody 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 charged and convicted in the scheme. Lopez failed to report to prison and is considered a fugitive with an outstanding warrant for her arrest.
The investigation was conducted by the FBI with assistance from several law enforcement agencies including 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.
