Nationwide Catalytic Converter Theft Ring Taken Down in Raid

Twenty-one people in nine states were arrested and charged Nov. 2 with their roles in conspiracies to steal catalytic converters from vehicles across the country and sell them for profit.

According to the U.S. Department of Justice, law enforcement from the federal, state, and local levels were involved in a coordinated takedown of thieves, dealers, and processors of the valuable piece of a vehicle’s exhaust system containing precious metals like palladium, platinum, and rhodium. The part can be stolen in less than one minute.

The DOJ said it seeks forfeiture of over $545 million from the cases involving 21 people charged in 2 federal indictments in California and Oklahoma. More than 32 warrants were also executed, and law enforcement seized millions of dollars in assets, including homes, bank accounts, cash, and luxury vehicles.

To put into perspective how lucrative the theft of catalytic converters can be, the DOJ said one family in Sacramento, California bought the stolen parts from an alleged unlicensed business run out of their home, and shipped them to DG Auto Parts, with multiple locations in New Jersey. The family allegedly sold over $38 million in stolen catalytic converts to DG Auto, the DOJ said.

The operators of DG Auto then extracted the precious metals from the core of the stolen catalytic converters from California and other states to a metal refinery for over $545 million, authorities added.

In March, State Farm released some startling stats on claims involving catalytic converts. State Farm said it paid $62.6 million for 32,265 catalytic converter theft claims nationally. The cost to replace a stolen catalytic converter can easily top $1,000.

“This national network of criminals hurt victims across the country,” said FBI Director Christopher Wray, in a statement. “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.”

Related:

• Insurers Report Jump in Catalytic Converter Thefts; New State Laws May Help
• Five Men Charged in Multi-State Catalytic Converter Theft Scheme