Houston Woman Sentenced to 30 Months for Role in Nationwide Fake Tag Scheme, Owes $316K in Restitution

A Houston woman has been slapped with 30 months behind bars for her role in the lucrative black market of bogus Texas paper tags, as reported by the U.S. Attorney's office. Leidy Hernandez Lopez, 43, previously pleaded guilty to a scheme involving the mass production and distribution of these illegal tags ranging across the United States.

Entering her plea back in May 2023, Lopez confessed to conspiring with partners in crime to create and peddle thousands of fake temporary buyer tags for vehicles—a scam that didn't actually involve selling any cars. To head off a longer sentence, the woman struck a deal with feds to plead guilty to counts of wire fraud and conspiracy, agreeing to heavily pocket a 30-month prison sentence along with a restitution payment upwards of $316,000 to the Texas Department of Motor Vehicles, according to the U.S. Attorney's Office for the Southern District of Texas.

In a recent court hearing, the severity of Lopez's actions was made clear by U.S. District Judge George C. Hanks Jr., who pointed out the potential danger her fraud posed to public safety. "The harm in this case was more than monetary," said U.S. Attorney Alamdar S. Hamdani. Lopez's black-market tags allowed criminals to quite literally drive under the radar to engage in activities including drive by shootings as well as other crimes that further menace the streets.

Through her digital network, Lopez managed to even move her product to distant places like New York, Florida, and Washington D.C. She conducted these sales through emails, transferring the counterfeit tags to resellers who would then pass them off to unsuspecting or complicit buyers. The web of deception also included transactions made through popular electronic payment services like Cash App and Zelle. Lopez has been granted the opportunity to turn herself in freely to a U.S. Bureau of Prisons facility that is yet to be determined, the U.S. attorney's office announced.

Law enforcement hasn't closed the book on this case just yet. An accomplice, Emmanuel Padilla Reyes, who is also known by aliases Christian Hernandez Bonilla or Noel Rivera, remains on the lam. The FBI, in a bid to wrap up its wide-reaching investigation, is dangling a $5,000 carrot for any tips that could lead to his capture. If you know something that could help, ring 1-800-CALL-FBI or dash off an email to www.TIPS.FBI.GOV. The FBI wants this ghost tag wholesaler to face justice, and they're enlisting the public's help to make sure he doesn't slip through the cracks.