Feds crack down on nationwide catalytic converter theft ring

The Department of Justice announced on Wednesday that it has arrested nearly two dozen people in a nationwide crackdown on a catalytic converter theft ring. 

In a news release, the agency said at least 21 individuals from five U.S. states have been arrested in connection with the thefts, noting that authorities conducted arrests, searches and seizures in states including California, New York, Minnesota, and New Jersey. 

All 21 individuals have been charged in two ​separate indictments after authorities executed more than 32 search warrants that resulted in seizures of millions of dollars in assets, including homes, bank accounts, cash and luxury vehicles.

Thefts of catalytic converters, a component of a vehicle’s exhaust system that reduces pollutants from the engine, have boomed amid the COVID-19 pandemic due to the surge in value of metals used in the devices, according to NBC News.

According to the California indictment, three of the defendants operated an illicit business from their residence in Sacramento, purchasing stolen catalytic converters from local thieves and shipping them to DG Auto Parts in New Jersey. 

DG Auto, run by Navin “Lovin” Khanna, a defendant in the case, allegedly received up to $38 million in stolen catalytic converters from the other defendants. DG Auto allegedly used a “de-canning” process to extract the precious metal powders from the catalytic core, selling it on to a mental refinery for more than $545 million.

Thirteen defendants in the Oklahoma case have been charged with conspiracy to receive stolen catalytic converters, conspiracy to commit money laundering and other related charges, with some also accused of selling those converters to Khanna’s operation. 

As a result of its investigation, authorities said they are seeking more than $545 million in forfeiture of cash, homes and luxury cars connected with the case, according to the news release. 

“We will continue to work alongside our state and local partners to disrupt criminal conspiracies like this one that target the American people,” Attorney General Merrick Garland said said in a statement.

Agents from the FBI, the IRS and Homeland Security Investigations also assisted with the Justice Department’s investigation, conducting sting operations in nine U.S. states. 

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