Jury convicts 'ringleader' of $2.7M million catalytic converter theft ring

A federal jury convicted a 72-year-old California man of selling thousands of stolen catalytic converters for a multi-million dollar profit, the Justice Department announced.

George Thomas could serve up to 10 years in prison, the Justice Department said in a Thursday release. According to charging documents, the Fresno County man used his company, G&G Business Ventures LLC, to buy the parts, then sold them in another state to a metal recycling company.

Prosecutors say Thomas spent nearly two years flipping the stolen car parts, amassing more than $2.7 million in sales.

“Catalytic converter theft is a nationwide problem that has affected tens of thousands of Californians,” said Acting U.S. Attorney for the Eastern District of California Michele Beckwith. “The U.S. Attorney’s Office is proud of its continuing effort to disrupt and dismantle this type of organized criminal activity that impacts so many victims.”

According to prosecutors, catalytic converter thefts dropped by more than 60% in the Fresno area after Thomas' April 2023 arrest. Fresno County District Attorney Lisa Smittcamp said that Thomas is the "ringleader" behind the theft operations in California's Central Valley.

Thomas's attorney Kendall Simsarian declined USA TODAY's request for comment until sentencing in the case is concluded. Thomas is scheduled to be sentenced on Sept. 11 and faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of his convictions.

Catalytic converters, which help filter pollutants from car exhaust, are often stolen from cars for precious metals, including rhodium, palladium and platinum. The metals can sell for hundreds or even thousands of dollars. A replacement can cost drivers between $200 and $2,500, depending on a car's make, according to the automotive resource website Edmunds.

Prosecutors: Man attempted to conceal sale of stolen parts after search warrant

According to court papers, Thomas bought the stolen parts between January 2021 and November 2022. He often made transactions in parking lots at all hours of the day and night.

Thomas told sellers what type of catalytic converters he was looking for and taught them how to cut them off vehicles, according to the justice department. He helped some of the sellers purchase saws that could be used for cutting converters from the undercarriage of cars.

"Defendant Thomas altered (vehicle identification numbers) that sellers had provided to him, and he told at least one seller that he did so to make the VINs look better," prosecutors said in court papers. "Many of the VINs were later determined to be fake or from stolen vehicles."

He attempted to legitimize the sales by having sellers sign certifications stating that the parts weren't stolen.

Thomas drove the stolen parts to Oregon, where he'd sell the converters to a company, according to court papers. Prosecutors didn't release the company's name.

In total, Thomas received more than $2.5 million from the company, prosecutors said.

"The recycling company paid Thomas by wire transfer," according to the justice department. "He then withdrew the money through 386 cash withdrawals that were each under the $10,000 reporting threshold. He often made the withdrawals on his way to and from Oregon."

Making withdrawals the way Thomas did is called structuring, the Justice Department said. The Bank Secrecy Act mandates all banks to report cash transactions over $10,000 to the government.

After a four-day trial, Thomas was found guilty of structuring transactions and transporting stolen goods across state lines.

“Today’s verdict sends a message; catalytic converter theft conspiracies will not be tolerated,” Special Agent in Charge Sid Patel, of the FBI Sacramento Field Office, said in the release. “The FBI and our law enforcement partners relentlessly pursue those who exploit hard working community members for whom these thefts are a financial hardship to extract the precious metals within them for personal gain.”

Feds bust catalytic converter theft rings across the nation

In the past several years, prosecutors have charged or prosecuted people for stealing catalytic converters from people.

In Massachusetts, Carlos Fonseca pleaded guilty in March 2024 to charges relating to his role in a multi-state theft ring. Federal prosecutors said he and six others ran the scheme from 2022 to 2023, flipping converters they stole from at least 400 vehicles in Massachusetts and New Hampshire for a profit. At the time of the arrest, a prosecutor said the group worked like a "NASCAR pit crew.

In California, three members of a California family pleaded guilty in October 2023 to their roles in a $600 million national theft ring. Prosecutors said the relatives were paid more than $38 million to transport the stolen parts from California to New Jersey. The Justice Department said in 2022 that 21 people from five states were charged for their roles in the conspiracy.

Governments, auto insurance companies and automotive companies are urging drivers nationwide to protect themselves from theft. According to insurance company Progressive, people can steal catalytic converters in a few minutes.

California's Bureau of Automotive Repairs recommends installing a theft prevention device on the converters to secure them to a vehicle. Additionally, the office says engraving or etching the part with the vehicle identification number or license plate can alert a reputable scrap dealer that the device is stolen and can help to identify the owner.

Beyond the part itself, the bureau recommends that people ensure their car alarms are operative and to park in safe locations.

"If you have a garage, use it," according to the office. "Consider installing motion-sensitive lights if you park in your driveway. Park close to a building entrance or in a well-lit and high-traffic area when parking in a public lot."

Contributing: Amaris Encinas, Thao Nguyen, USA TODAY.

Contact reporter Krystal Nurse at knurse@USATODAY.com. Follow her on X @KrystalRNurse, and on BlueSky @krystalrnuse.bsky.social.