On Wednesday, a federal jury in San Antonio convicted a 49-year-old Rowlett man of two counts of mail fraud connected to what was termed a "title-washing" scheme.
Title washing involves altering the title documents in order to conceal information that would normally appear in the title, like a financial lienholder or previously salvaged title. Title washing is oftentimes an attempt to get around requirements that vehicles with non-repairable or parts-only histories can only be used for parts or scrap metal.
The scheme reportedly involved the reception, by mail, of two fraudulent Texas vehicle titles. The man now faces up to 20 years in prison for each count of mail fraud.
Five other defendants have already pleaded guilty to involvement in the scheme which, according to prosecutors, began back in June 2009 and went through October 2010. The defendants involved in the scheme requested and filled out fraudulent paperwork with the Texas Department of Motor Vehicles in order to get untainted Texas vehicle titles using the mechanic's lien process.
Those vehicles were then sold to third parties who had no knowledge of the title problems. In total, over 600 fraudulent titles were involved. The scheme was discovered in an investigation by the FBI and the Texas Department of Public Safety, the United States Postal Service and National Insurance Crime Bureau.
They jury's conviction of the San Antonio man on two counts of mail fraud was connected to two vehicle title which were fraudulently obtained by another defendant.
The man's sentencing has been set for January 9, according to sources.
Source: nbcdfw.com, "Rowlett Dealer Convicted in Title Scam," Sep 22, 2011.
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