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.
http://www.brownsvilleherald.com/news/cardenas_80583___article.html/federal_reed.html
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We have worked with CTMS for years. Their professional staff and
extensive experience provide an invaluable resource to our teams at
each of our dealerships. I rest easier knowing that they train our
staff and review cash transactions to help ensure we will not run
into problems with the IRS.
Allan Cady
Chief Financial Officer
Automotive Investment Group
I don’t have any concerns about what would happen in an IRS Form
8300 audit. CTMS has done such a great job training
my staff and auditing my cash transactions that I rest easy at night
knowing that if the IRS shows up, they will leave complimenting our
program and follow-through.
Ken
Shaw
Controller
Midway Auto Team
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