On Tuesday, a 27-year-old San Antonio man who faced the possibility of between 33 and 41 months in prison on charges of mail fraud received five years of probation in connection with a car-title scam involving a Dallas-area used car salesman. According to sources, the lighter sentence was given in exchange for the man's agreement to cooperate in the arrest of further suspects.

The San Antonio man reportedly submitted fraudulent paperwork to the state in order to obtain over 600 clean vehicle titles. The title-which covered up the histories of histories of salvaged vehicles and those that were only supposed to be used for parts-were then sold for between $50 and $250 each.

In a trial against the Dallas-area used car salesman last month, the San Antonio man reportedly confirmed that he used a Texas mechanic's lien process in order to seize cars of customers.

In addition to his probation term, the San Antonio man will also have to pay restitution in the amount of $79,559. That amount is only a fraction of the $3 million worth of losses to car lenders, for which all 19 defendants are collectively responsible.

Among the titles listed in the plea deal, the man admitted to washing a title for a Cheverolet Uplander that was legally only to be sold for parts, but which had been repaired. That title was sold to the Dallas man, who had obtained the vehicle from a government auction and sold it to an unknowing consumer. The Dallas man was convicted of two counts of mail fraud and currently faces as much as 30 years in prison.

According to sources, federal authorities have already obtained two indictments implicating 19 suspects involved in the scam. Those suspects come from New Jersey, Arizona and Texas.

Source: mysanantonio.com, "Mastermind in car-title scam gets probation," Guillermo Contreras, Oct 12, 2011.