A Brazilian court on Tuesday sentenced the head of a major parts manufacturer to two years in prison for fraud in connection with a scheme that made parts for more than 1,500 cars.
The Brazilian court sentenced Luiz Carlos López da Silva, CEO of Tequila Works in Sao Paulo state, to two and a half years in jail and ordered him to pay $10 million in fines for allegedly committing “deceit, deceit and fraud.”
The case was filed in August 2014 by a court in Sao Paolo, Brazil’s second-largest city, according to a news release from the Brazilian Justice Department.
The judge ordered Lózman to pay a total of $10.5 million in restitution to victims and pay the fines, including the $10,000 he had already paid in the first case.
In a separate case, prosecutors in Brazil’s northern state of Goias filed a separate fraud case against Lózos company in December, accusing it of selling a series of parts to several vehicles including the Mercedes-Benz C63 AMG.
The cars were made in Brazil, sold to customers in the United States and sold in Europe.
Lózas company was fined a total $11.8 million by the court and ordered to pay the fine and restitution, including $2.3 million in a separate court case.
López, who has not commented on the latest case, was also ordered to undergo a psychiatric evaluation.
The case of Tequilas “bust” of the car parts factory in the northeastern state of Rio de Janeiro has drawn attention to the company’s shady business practices.
The company makes part parts for vehicles such as Mercedes-AMGs and other luxury cars.
Its main product is the carbon fiber composite body panels, which are used on all of Teqeres cars.
The company says its carbon fiber is better than most plastic composites and is more robust than the plastic used in many consumer products, like Styrofoam and plastic sheets used in furniture.