More
arrests expected as investigation continues
April 26, 2023 Updated:
April 27, 2023
The Texas Department of
Public Safety (DPS) has made an arrest in connection with a driver’s license
scheme linked to a Chinese organized crime ring.
Late last year, DPS discovered it
had sent thousands of fraudulently obtained duplicate driver’s licenses to
addresses in New York, Oklahoma, and Georgia. The breach was made public during
a budget hearing at the Capitol in Austin, Texas.
The licenses have been
used nationwide to withdraw money from victims’ bank accounts, open credit card
accounts, and purchase expensive vehicles.
Tony Cao Li, 35, was
arrested in Flushing, New York, earlier this month. He is accused of organized
criminal activity, fraudulent use or possession of identifying information, and
breach of computer security, according to the arrest warrant obtained by The
Epoch Times.
Li is accused of using a
fraudulently obtained license as identification to purchase expensive vehicles,
including a 2023 Porsche Cayenne and a Mercedes-Benz valued at more than
$123,000, the document said.
On April 21, Li was
extradited from New York to Austin, Texas.
Initially, DPS reported
at least 3,000 Texans were affected by the security lapse on the state’s
website, but the number of victims has since grown to more than 5,100.
“[T]his is a sophisticated operation by an organized crime group,”
the warrant says.
Investigators allege that
1,273 duplicate driver’s licenses were sent to three neighboring addresses at a
marijuana growing site in Tecumseh, Oklahoma.
According to the
documents, Li lived at the property at some point and his belongings were still
there when investigators executed a residential search warrant on Feb. 9.
A person living at the
property said Li had not returned since November 2022.
That person told investigators
that “suspicious mail to any of the three suspected addresses was placed in the
office and area of the marijuana grow structure where Li would visit to pick it
up.”
Authorities found three
illegally duplicated licenses and 30 pieces of mail from Texas DPS.
Officials told The Dallas Morning News they
have identified nearly $700,000 in losses, and they expect the amount to grow
as more victims come forward.
Security
Breach
The issue was related to
security problems with the Texas.gov payment portal, managed by the Texas
Department of Information Resources (DIR), where Texans can order a
replacement, renewal, or duplicate license.
The criminals used the
“dark web” to steal credit card information to buy duplicate driver’s licenses
of Texans with Asian surnames, DPS told lawmakers in February.
Before the lapse, the DIR
payment system did not have security features in place.
DPS Deputy Directory of
Law Enforcement Services Jeoff Williams said the department had asked DIR to
strengthen the security features to protect Texans using the website.
The portal now requires
purchasers to use credit card security features such as a billing ZIP code or
credit card CVV, a three-digit code on the back of the credit card.
Officials waited until
late February to notify victims by letter, citing an ongoing investigation.
At least 4,900 letters
were reportedly sent to victims as of April 21.
What
Else?
Li and another suspect,
identified as Yan Chen, were arrested at the Chase Bank in Lindon, Utah, where
police responded to a call that two suspects had provided false information to
a bank teller.
A third suspect, Song
Chen, who was arrested, was found inside the 2023 Porsche Cayenne that was
purchased using a fraudulent ID, according to the warrant.
The suspects were found
with five duplicate licenses belonging to men in Texas.
Authorities have
recovered duplicate licenses as far away as a ski resort in Canada. And local
police found more than 600 in a hotel room in Smyrna, Tennessee, according to
The Dallas Morning News.
It is unclear what role
Yan Chen and Song Chen may have had in the scheme, and DPS has not identified
other possible suspects.
DPS did not immediately
respond to a request for more information.
Li is being held on a
$250,000 bond in the Travis County Jail. The investigation is ongoing.
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