Nationwide catalytic converter-theft ring busted
More than 20 people from five states were arrested for their roles in the ring, which netted hundreds of millions of dollars.
A nationwide ring of thieves, dealers and processors of stolen catalytic converts was taken down in coordinated operations that took place across nine states. According to the Department of Justice, 21 people were arrested or charged in connection to two separate indictments that were unsealed in the Eastern District of California and the Northern District of Oklahoma earlier this month.
“This national network of criminals hurt victims across the country,” FBI Director Christopher Wray said in a release. “They made hundreds of millions of dollars in the process — on the backs of thousands of innocent car owners. Today’s charges showcase how the FBI and its partners act together to stop crimes that hurt all too many Americans.”
Arrests, searches and seizures took place in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina and Virginia. More than 32 search warrants were executed and millions of dollars in assets were seized, the DOJ reported.
“With California’s higher emission standards, our community has become a hot bed for catalytic converter theft,” U.S. Attorney Phillip A. Talbert for the Eastern District of California said in a release. “Last year approximately 1,600 catalytic converters were reportedly stolen in California each month, and California accounts for 37% of all catalytic converter theft claims nationwide.”
At the center of both indictments was DG Auto Parts LLC, a New Jersey company that processed stolen catalytic converts. DG Auto sold the precious metal powders it processed to a metal refinery for over $545 million, according to the DOJ.
Catalytic converters, which use precious metals in their centers, are a component of a vehicle’s exhaust system that reduces toxic gas and pollutants. They are regularly targeted for theft due to the high value of these metals, including palladium, platinum, and rhodium.
The DOJ reported that depending on the state and type of vehicle it comes from, catalytic converters can sell for more than $1,000 each on the black market. They are also relatively easy to steal, and do not typically have any identifying marks such as a VIN or unique serial number.
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