Texas DMV board revokes TC Auto Finance dealer license, assesses $500,000 penalty

The Texas Department of Motor Vehicles board voted 7–1 on April 10, 2025, to revoke TC Auto Finance’s general distinguishing number (GDN) and assess a $500,000 civil penalty for issuing buyer temporary tags that the administrative law judge found exceeded reported sales.

The vote followed oral presentations from department counsel and the respondent and deliberation that relied on the record developed at the State Office of Administrative Hearings (SOAH). Joyce Lowe, the Enforcement attorney who tried the case for the department at SOAH, told the board the record shows respondent issued 903 buyer temporary tags “in excess of reported sales” during a seven‑month period and asked the board to adopt findings and increase the civil penalty to $1,000 per excess tag capped at $500,000. “Respondent should be assessed a penalty of $500,000 for issuing 903 buyers temporary tags without corresponding vehicle sales,” Lowe said.

Respondent’s representative, Anastor Hernandez, maintained that TC Auto Finance had been the victim of malware and external misuse of its systems and said the company had collected records and law‑enforcement reports supporting that claim. Hernandez said the business produced multiple exhibits and hired cybersecurity consultants and investigators; he told the board, “We presented all the proof to the Department.” Board counsel and the ALJ had excluded or given limited weight to some of that testimony and evidence in the SOAH record.

General Counsel Laura Moriarty reminded the board that its role was limited by law to deciding whether to adopt or modify the SOAH proposal for decision (PFD), and to explain in any motion how the board’s action conforms with the findings of fact in the administrative record. Moriarty cited Texas Government Code §2001.058(e) and Texas Occupations Code §2301.801(b) as the statutory framework for determining sanctions, including factors such as seriousness of the violation, history of prior violations and the deterrent needed.

Board members debated sanctions and penalty levels. Member Jones introduced a motion to adopt the ALJ’s findings and most conclusions but to modify the sanction to assess $500,000 and to revoke the respondent’s GDN; the motion was seconded and carried by roll call, with Member Graham the lone dissent. Chair Charles Bakarese announced the result: “There are 7 votes for it and 1 against.”

The board’s action adopts findings of fact and conclusions of law from the SOAH record as amended by the ALJ’s exceptions, and imposes a civil penalty that departs from the ALJ’s recommended $90,300 and instead implements the board’s chosen sanction amount and license revocation. The board did not receive or consider new evidence at today’s meeting; board members and counsel emphasized decisions must be based on the SOAH administrative record.

What happened next: The board directed staff to prepare and issue the final order reflecting the board’s findings, modified conclusion of law on sanction, and the license revocation. The department’s counsel indicated the motion had specified the legal bases required by the Government Code for modifying an ALJ recommendation.