A nationwide catalytic converter theft ring that generated lots of of thousands and thousands of {dollars} in income was taken down in an unprecedented federal investigation, the Division of Justice mentioned Wednesday.
The operation included arrests, searches and seizures in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina and Virginia.
Twenty-one defendants have been charged in two indictments that have been unsealed Wednesday in U.S. district courts for the Jap District of California and the Northern District of Oklahoma, federal officers mentioned. Investigators additionally served 32 search warrants and seized thousands and thousands of {dollars} in belongings together with houses, financial institution accounts, money and automobiles.
The operation is the primary nationwide takedown of a catalytic converter theft ring coordinated by the Justice Division, mentioned Lauren Horwood, a spokesperson for the U.S. lawyer’s workplace for the Jap District of California.
Within the California case, brothers Tou Sue Vang, 31, and Andrew Vang, 27, are accused of working an unlicensed enterprise with 51-year-old Monica Moua from their house in Sacramento.
The trio purchased stolen catalytic converters from native thieves and shipped them to DG Auto Elements in New Jersey for processing, authorities mentioned.
“The Vang household allegedly offered over $38 million in stolen catalytic converters to DG Auto,” the Justice Division mentioned.
A 40-count indictment alleging conspiracy to move stolen catalytic converters, conspiracy to commit cash laundering and different costs names the Vang brothers, Moua and 6 different defendants.
Navin Khanna, also referred to as Lovin Khanna, 39; Tinu Khanna, also referred to as Gagan Khanna, 35; Daniel Dolan, 44; Chi Mo, also referred to as David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 24, all of New Jersey, operated DG Auto branches in New Jersey, authorities mentioned.
Starting round October 2019 and persevering with till final month, in keeping with the indictment, stolen catalytic converters have been shipped from Sacramento to New Jersey, and funds have been despatched by way of wire switch from DG Auto to the Vangs’ enterprise, together with a number of in extra of $100,000.
The suspects have been being recorded by confidential informants.
Catalytic converters are part of a car’s exhaust system that reduces the quantity of pollution and poisonous gases discharged by the interior combustion engine. The units comprise treasured metals akin to palladium, platinum and rhodium of their cores and are sometimes focused by thieves due to their excessive worth, lack of figuring out markings and relative ease of theft.
Federal authorities estimate that DG Auto offered treasured metallic powders it processed from the catalytic converters to a metallic refinery for greater than $545 million.
Within the Oklahoma case, 13 defendants accused of shopping for stolen catalytic converters from road thieves and reselling them to DG Auto are charged with 40 counts, together with conspiracy to obtain stolen catalytic converters, conspiracy to commit cash laundering and different associated costs.
The defendants embrace Adam Sharkey, 26; Robert Gary Sharkey, 57; Tyler James Curtis, 26; Benjamin Robert Mansour, 24; Reiss Nicole Biby, 24; Martynas Macerauskas, 28; Kristina McKay Macerauskas, 21; Parker Star Weavel, 25; Shane Allen Minnick, 26; Ryan David LaRue, 29; Brian Pate Thomas, 25; and Michael Anthony Rhoden, 26. The Sharkeys are residents of New York state; Curtis, Mansour, Biby, Weavel, Minnick, LaRue, Thomas and Rhoden dwell in Oklahoma, and the Macerauskases are Texas residents.
The indictment additionally names Navin Khana as a defendant.
From 2020 to this 12 months, authorities allege, Curtis acquired greater than $13 million over wire transfers from DG Auto and greater than $500,000 from Capital Cores Corp., a New York enterprise operated by Adam Sharkey.
Sharkey acquired greater than $45 million and Martynas Macerauskas acquired greater than $6 million, all from DG Auto, in keeping with the Justice Division.
“In all these incidents, many of the catalytic converters offered to DG Auto have been stolen, and DG Auto knew or ought to have identified that after they paid for them,” federal authorities mentioned.
California’s greater emissions requirements have made the state “a sizzling mattress” for catalytic converter theft, mentioned U.S. Atty. Phillip Talbert of the Jap District of California.
“Final 12 months roughly 1,600 catalytic converters have been reportedly stolen in California every month, and California accounts for 37% of all catalytic converter theft claims nationwide,” Talbert mentioned.
U.S. Atty. Clint Johnson of the Northern District of Oklahoma mentioned Tulsa alone noticed greater than 2,000 such thefts within the final 12 months.
“Organized prison exercise, together with the large-scale theft of catalytic converters, is expensive to victims and too usually locations residents and legislation enforcement at risk,” Johnson mentioned.
The operation concerned legislation enforcement personnel from the FBI, Homeland Safety Investigations, the Inside Income Service and dozens of state and native police departments and companies.
