U.S. Attorney for the Southern District of New York Jay Clayton announced on May 20 the arrests of eleven individuals accused of participating in a multimillion-dollar scheme to avoid tolls, parking, and traffic tickets by using fraudulently obtained temporary license plates. The defendants face charges including wire fraud and access device fraud, as outlined in a five-count indictment. Nine of the eleven are expected to appear before U.S. Magistrate Judge Victoria Reznik in White Plains federal court, while two others will be presented before magistrate judges in North Carolina and Florida.
The case highlights concerns about fraudulent use of temporary vehicle registrations, which authorities say deprived New York State and New York City of millions in revenue over several years. According to prosecutors, these actions shifted financial burdens onto law-abiding residents.
“For over five years, the defendants allegedly conspired to use fraudulently obtained temporary license plates, or ‘temp tags,’ to avoid fees, tolls, and parking traffic tickets,” said U.S. Attorney Jay Clayton. “Their schemes deprived New York State and New York City of millions of dollars in revenue. Hard-working, honest New Yorkers were footing their bills. This Office and our law enforcement partners are committed to protecting New Yorkers from fraud, waste, and abuse. The defendants allegedly spent years scheming to avoid tolls and tickets. Their bill has now come due.”
“These individuals allegedly turned temporary tags into tools for evading accountability, allowing drivers to dodge tolls, and lawful traffic penalties,” said FBI Assistant Director in Charge James C. Barnacle Jr., adding that investigations uncovered approximately $15 million in unpaid violations linked with these activities.
According to indictments filed on May 13 in White Plains federal court, licensed auto dealerships may issue temporary registrations for legitimate vehicle sales or leases; however, investigators allege that sham dealerships were created by the defendants solely for generating fraudulent temp tags unconnected with real transactions—over 100,000 such tags were produced since June 2017.
The indictment states that some temp tags generated through this scheme have been involved not only with unpaid fines but also with at least 1,200 incidents reported to police—including six homicides—and complaints from victims who received bills for violations they did not commit.
Each defendant faces multiple counts carrying maximum sentences ranging from five up to twenty years’ imprisonment per count if convicted; sentencing will ultimately be determined by a judge should there be convictions at trial.
Clayton praised the work of federal agents as well as local law enforcement agencies involved in investigating this case.
Authorities remind the public that charges described are allegations at this stage; all defendants are presumed innocent unless proven guilty.
