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Oct 10, 2023

Sacramento auto shop indicted for selling stolen catalytic converters

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A Sacramento auto shop with a suspended license that was operating out of a home is facing federal charges after allegedly receiving more than $38 million in payment for transporting stolen catalytic converters across state lines, according to a federal indictment.

According to court documents, the owners and employees of Vang Auto, a purported automotive dismantler business in Sacramento, transported stolen catalytic converters to DG Auto Parts, a catalytic converter extraction company in New Jersey.

(Previous coverage of catalytic converter thefts in video above.)

The indictment states that DG Auto Parts removed the core from the converters using a "de-canning" machine and other processes that extracted powdered precious metals from the catalytic converters, and then packaged and transported the resulting powders to a metal refinery in New Jersey for further processing, and to be sold for over $545 million in profits.

This alleged illegal operation was part of a nationwide crackdown on stolen catalytic converter thefts across the United States.

"Federal, state and local law enforcement partners from across the United States executed a nationwide, coordinated takedown today of leaders and associates of a national network of thieves, dealers, and processors for their roles in conspiracies involving stolen catalytic converters sold to a metal refinery for tens of millions of dollars," a press released sent out by the U.S. Department of Justice stated on Wednesday.

The U.S. attorney for California's Eastern District indicted nine people in Sacramento, which court documents state are the owners and employees of Vang Auto.

If convicted, all parties will have to pay the money back; if they can't, the federal government will seize their property.

According to the DOJ's press release, "Arrests, searches, and seizures took place in California, Oklahoma, Wyoming, Minnesota, New Jersey, New York, Nevada, North Carolina, and Virginia. In total, 21 individuals in five states have been arrested and/or charged for their roles in the conspiracy."

Catalytic converters are a component of a vehicle's exhaust device that reduce the toxic gas pollutants from the engine.

In order to accomplish the goal of fewer emissions, there's a large amount of precious metals, including palladium, platinum and rhodium, compacted inside.

Some of the precious metals are more valuable per ounce than gold, and their value has increased in recent years.

Certain catalytic converters can be sold on the streets for above $1,000 each, according to federal authorities.

California, along with some other states, requires a higher emission standard, thus catalytic converters on vehicles registered in California will contain a higher concentration of precious metals.

"With California's higher emission standards, our community has become a hot bed for catalytic converter theft," said U.S. Attorney Phillip A. Talbert for the Eastern District of California. "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. I am proud to announce that we have indicted nine people who are at the core of catalytic theft in our community and nationwide."

A KCRA 3 Investigation revealed reports of catalytic converter thefts skyrocketed to 1,500% in Sacramento County over recent years.

| VIDEO BELOW | Catalytic converter bill passes California Assembly