Two DMV employees are among eight individuals arrested in Bay County for involvement in a fraudulent driver’s license ring—issuing official state licenses to illegal aliens in exchange for cash, in clear defiance of state law.
The Bay County Sheriff’s Office (BCSO), in conjunction with Homeland Security Investigations (HSI), began investigating in mid‑May after noticing suspicious spikes in license issuance at the Bay County Tax Collector’s office, according to CDL Life.
Bay County Sheriff Tommy Ford announced today at a press conference the results of a joint investigation with partner agencies which resulted in eight arrests and the seizure of $120,000 in illicit proceeds. The investigation is ongoing and additional charges and arrests are expected.
On May 20, 2025, Bay County Sheriff’s Office investigators began the joint investigation with HSI due to the discovery of suspicious driver’s license transactions occurring at the Bay County Tax Collectors Office, the agent issuing driver’s licenses for the Department of Highway Safety and Motor Vehicles (DHSMV).
Information was reported that two DMV employees were compromised and were being financially compensated to provide individuals with driver’s licenses, even though the individuals did not meet statutory requirements to lawfully obtain the license.
During the investigation, BCSO investigators learned that two employees were indeed issuing a unusually large number of drivers licenses and, when in-house video at the DMV was reviewed, investigators confirmed the individuals receiving the licenses were bypassing the required tests necessary to lawfully receive a license. These individuals were coming from across the state of Florida to Bay County to receive the driver’s licenses.
The two employees have been arrested. They are Bancelie Velazco, age 37, of Panama City, and Demetrius Smith, II, age 30, of Panama City. Velazco has been charged with nine counts of DMV Employee Issue Unlawful DL and nine counts of Official Misconduct.
Smith has been charged with eight counts of DMV Employee Issue Unlawful DL and eight counts of Official Misconduct. Approximately $120,000 in US currency was seized from the homes of the arrested employees as illicit proceeds.
It was also learned that the individuals coming to Velazco and Smith to obtain their DL were doing so through a third party operating as intermediaries and were paying Velazco and Smith either in person at the DMV or online through a cash app.
Financial records of Smith and Velazco were reviewed and it was learned that both of them were receiving suspicious cash app transactions and that Velazco was depositing a suspicious amount of cash into her accounts, inconsistent with her monthly salary.
Some of the intermediaries were not individuals but organizations like CubaMax, located in Callaway in Bay County. CubaMax is a company that processes immigration documents.
CubaMax acted as a referral source for those seeking to obtain driver’s licenses fraudulently, directing them to the local DMV. A search warrant was executed at CubaMax to obtain evidence of this scheme.
Additional individuals identified as intermediaries in this operation have been arrested. They are:
Niurbis Rosales, age 37, of Panama City, on 24 counts of Principal: DMV Employee Issue Fraud DL and 24 counts Principal: Official Misconduct. She owned and operated CubaMax.
Leonardo Gutierrez,, age 32, of Panama City, on seven counts of Principal: DMV Employee Issue Fraud DL and seven counts Principal: Official Misconduct.
Hung Du, age58, of Panama City, on 36 counts Principal: DMV Employee Issue Fraud DL and 36 counts Principal: Official Misconduct.
Isbrieta Parra, age 44, of Panama City, on seven counts Principal: DMV Employee Issue Fraud DL and seven counts Principal: Official Misconduct.
Zoila Gonzalez-Pena, age 38, of Panama City, on 12 counts Principal: DMV Employee Issue Fraud DL and 12 counts Principal: Official Misconduct. She was an employee at CubaMax.
Also arrested but not identified as operating as an intermediary was Mirna Fernandez, age 34, of Panama City, on a charge of Unlawful Possession of a Driver’s License. It is believed that Fernandez obtained her Driver’s License fraudulently, paying to receive a passing grade on her exam and skills exam.
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