Cardenas Autoplex pleads guilty to federal charges
Cardenas Autoplex Inc. faces up to five years probation and a $500,000 fine following its conviction Tuesday in federal court for failing to report cash transactions relating to a car sale from its dealership in Harlingen.
The corporation, as authorized by its president, Renato “Rene” G. Cardenas, and secretary Edith McCumber, pled guilty to one count of a three-count indictment returned in June against it and Cardenas Enterprises Inc.
They were charged with failing to report cash sales in excess of $10,000 for a Mercedes Benz, Toyota Camry and BMW in 2003 and 2005 in violation of federal regulations.
Regulations require reporting to the Financial Crimes Enforcement Network in efforts to combat money laundering. No individuals were charged.
Corporate attorneys Robert Eric Reed and John Patrick Smith of Houston presented the plea Tuesday before U.S. District Judge Andrew S. Hanen in federal court here. Corporate officers were not present at the proceedings, Reed said.
In return for its guilty plea, U.S. Attorney for the Southern District of Texas Donald J. DeGabrielle Jr. and Assistant U.S. Attorney Arthur R. Jones agreed to seek the dismissal of the remaining two counts against the two corporations.
“I think everybody is very pleased to have this further behind them. They are a very positive, hopeful, optimistic family, focusing on the good things ahead,” Reed said.
The two corporations are part of the Cardenas auto group, which also has dealerships in Brownsville and San Benito.
“The company continues to be a major employer in the Valley and leader in community service and they look forward to a long future of the same,” Reed added.
Hanen ordered a pre-sentence investigation report by Dec. 14. The case is set for sentencing Jan. 7, 2008 at 8:30 a.m.
