Arizona Man Pleads Guilty to Defrauding Kansas City Company of over $500,000

KANSAS CITY, Mo. - An Arizona man pleaded guilty in federal court today to defrauding a Kansas City company of over $500,000 in vehicles.

Ernesto Dominguez Texas, 31, purchased ten vehicles worth over $500,000 using two false names and falsely representing that he worked for a car dealership. This successful prosecution is one of many federal fraud cases pursued under the leadership of President Donald Trump and through the establishment of the Task Force to Eliminate Fraud.

In December 2023, Texas created an online account with Company 1, a Kansas City company that facilitated the online purchase and sale of used vehicles. In 2023, Company 1 had a policy that car dealerships did not have to pay before ordering vehicles. Company 1 guaranteed payment to the selling dealership for vehicles sold through its online marketplace.

Texas used a false name and the name of a legitimate dealership, Company 2, to purchase ten vehicles priced at $507,655. Company 1 emailed invoices for the ten vehicles to Texas. Texas picked up the vehicles from the selling dealerships in Arizona, using the invoices and a second false identity. Texas forged papers and notary signatures to retitle the vehicles in Arizona and sell them.

Under federal statutes, Texas is subject to a sentence of up to 20 years in federal prison without parole for wire fraud. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of Texas will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Federal Bureau of Investigation, and the Arizona Department of Transportation Enforcement and Compliance Division.

National Fraud Enforcement Division

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.