Agents Arrest 21, Bust Theft Ring That Allegedly Made Millions From Catalytic Converter Theft

Authorities arrested 21 people suspected of being part of a nationwide theft ring that allegedly made millions of dollars from stolen catalytic converters, the Justice Department announced.

The DOJ said Wednesday that local, state, and federal law enforcement agents seized hundreds of million in assets in coordinated raids and arrests in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina and Virginia.

Each suspect is being charged with conspiracy to transport stolen catalytic converters, conspiracy to commit money laundering and other related charges. The government is seeking $545 million in civil forfeitures.

State Farm, the largest auto insurance company in the U.S., recently said they paid more than $70.6 million in claims for catalytic converter theft between 2019 and August. They also said catalytic converter theft grew 109% nationally between July 2021 and June of this year compared to the number of claims filed in the previous 12 months.

Catalytic converters contain rare-earth metals such as platinum, palladium, and rhodium and are easy to steal. It can take less than 30 seconds to unbolt the device attached to a vehicle, David Glawe, president and CEO of the National Insurance Crime Bureau, told PBS.

Catalytic converters reduce emissions and improve gas efficiency by converting hydrocarbons, carbon monoxide, and nitrogen oxides into oxygen, nitrogen, and carbon dioxide.

According to CarFax, a catalytic converter can fetch around $2,200 an ounce of palladium and rhodium, which goes for about $13,000 per ounce. Prices for rare-earth metals have surged recently because of a global shortage.

"This national network of criminals hurt victims across the country," said FBI Director Christopher Wray. "They made 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."