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Jan 25, 2024

San Jose scrapyard accused of buying stolen catalytic converters to pay $2,500 settlement

A San Jose metal scrapyard accused of trading in stolen catalytic converters and

A San Jose metal scrapyard accused of trading in stolen catalytic converters and "fueling a rise" in property crimes in the South Bay has reached a $2,500 settlement with the city following an undercover operation dubbed "Cat Scratch Thiever."

Tung Tai Group and its owner, Joseph Chen, faced a public nuisance shut-down order from the city starting in February 2022 after police targeted the business while investigating catalytic converter theft rings. A parallel criminal investigation filed against Chen was dropped because of insufficient evidence.

Chen, who has a long history of run-ins with law enforcement stretching back to the late 2000s, recently came under scrutiny after a stolen statue from a San Jose public park was found at his scrapyard in February. Police say they have exhausted all leads trying to find out who stole the 440-pound public artwork of a 1600s-era Indian ruler — and the city is currently figuring out whether it can repair the damaged statue and return it to Guadalupe River Park.

Chen's attorney, Jim Roberts, has denied any wrongdoing on behalf of his client on accusations involving stolen catalytic converters and the stolen statue in past interviews. He declined to comment on the settlement.

As part of the settlement, Chen has agreed to only purchase legally obtained catalytic converters and copper wire — and his name will be removed from San Jose Police Department's website and social media pages that advertised its "Cat Scratch Thiever" investigation.

The scrapyard faces the possibility of additional penalties if it doesn't follow industry regulations for the next three years. In an emailed statement, City Attorney Nora Frimann said if Tung Tai Group violates any laws going forward, the city can pursue contempt of court proceedings.

"The City's goal in most instances is gaining compliance with our codes and enjoining illegal actions or a nuisance, so this settlement achieves that goal," she wrote.

The scrapyard was established in 1982 and gained an early foothold in the Chinese recycling market, according to a 2006 industry profile on Chen. Since 2007, the scrapyard on 1726 Rogers Ave. has been involved in a police sting to retrieve stolen copper, faced felony charges for defrauding the state out of millions of dollars in what then attorney general and former Gov. Jerry Brown called a "brazen scheme," paid large fines for purchasing illegal Cuban metal and broke environmental regulations on two separate occasions.

In 2021, the San Jose Police Department's Burglary Prevention Unit claimed that undercover officers were able to buy stolen catalytic converters, copper wire and internet routers from Tung Tai Group — all without the proper identification or paperwork required by the law. The officers also claimed that Tung Tai Group was allowing them to obscure their identities to bypass purchasing regulations.

In a court filing in February 2022, the city alleged that police quickly identified the business as a fencing operation for stolen catalytic converters, noting that "Tung Tai Group is likely fueling (a) surge ofproperty crimes in San Jose and the greater Santa Clara County."

Catalytic converters help reduce vehicle emissions, and the precious metals found inside are a prime target for thieves, who can fetch up to $150 by selling the car part on the black market.

Roberts claims undercover officers asked the scrapyard owner for "cats" — short for catalytic converters — and Chen responded by pointing to a feral cat nearby and then walked away after being prodded further. In court filings, Roberts describes Chen as an elderly man who is hard of hearing with limited English-language abilities. Roberts said a forklift driver who worked for the scrapyard did sell some catalytic converters to the officers, and he was later suspended.

As for the stolen statue from Guadalupe River Park, Roberts said individuals tried to sell the piece to the scrapyard, but the business refused to purchase it. The individuals left the statue on the curb, Roberts said, and Tung Tai Group retrieved it and stored it in its offices, next to a Coke machine.

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