Nationwide Catalytic Converter Theft Ring Busted; Holmdel Man Charged

HOLMDEL, NJ — A nationwide takedown of leaders and associates operating a stolen catalytic converter ring found its way to Holmdel Wednesday, with a raid on a house there and the arrest of, among others, six New Jersey residents connected to DG Auto, federal officials charge.

According to the DG Auto website, the company is headquartered at the mailing address of 527 Okerson Road, Freehold. Its website homepage says it is the "leading buyer" of catalytic converters in New Jersey.

Those arrested in New Jersey are: Navin Khanna of Holmdel, Tinu Khanna, Daniel Dolan, Chi Mo, Wright Louis Mosley and Ishu Lakra, according to a news statement from the U.S. Attorney's office.

Arrests, searches and seizures took place not only in New Jersey, but in California, Oklahoma, Wyoming, Minnesota, New York, Nevada, North Carolina and Virginia, according to U.S. Attorney General Merrick Garland.

The government also announced $545 million in forfeitures are being sought in connection with the case.

In total, 21 individuals in five states have been arrested and/or charged for their roles in the conspiracy that extended from October 2019 to October 2022, the government said.

The 21 defendants are charged in two separate indictments that were unsealed today in the Eastern District of California and the Northern District of Oklahoma, following "extensive law enforcement arrest and search operations," the government said.

The Eastern District of California indictment shed light on the New Jersey operation where a Sacramento ring is charged with selling stolen catalytic converters to DG Auto in New Jersey for processing.

Here are some details of the Holmdel connection:

First, a federal grand jury in the Eastern District of California returned a 40‑count indictment charging nine defendants with conspiracy to transport stolen catalytic converters, conspiracy to commit money laundering, and other related charges.

According to court documents, brothers Tou Sue Vang, 31, and Andrew Vang, 27, and Monica Moua, 51, all of Sacramento, Calif., allegedly operated an unlicensed business from their personal residence in Sacramento where they bought stolen catalytic converters from local thieves and shipped them to DG Auto Parts LLC in New Jersey for processing.

The Vang family allegedly sold over $38 million in stolen catalytic converters to DG Auto. The indictment noted "thousands of pounds" of the converters that were shipped to DG Auto, including 300 from Toyota Prius cars.

DG Auto operated out of multiple locations in New Jersey, authorities said. Authorities Wednesday raided a Bucks Mill Lane home in Holmdel of one of the defendants.

In New Jersey, defendants Navin Khanna of Holmdel, aka Lovin Khanna, 39; Tinu Khanna, aka Gagan Khanna, 35; Daniel Dolan, 44; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 24, all of New Jersey, operated DG Auto in multiple locations in the state, the government said.

Authorities say they knowingly purchased stolen catalytic converters and, through a “de-canning” process, extracted the precious metal powders from the catalytic core.

DG Auto sold the precious metal powders it processed to a metal refinery for over $545 million, authorities said.

Navin Khanna is also charged in a separate indictment from the Northern District of Oklahoma for receiving stolen catalytic converters from a ring in that part of the country.

In addition to the indictments, over 32 search warrants were executed, and law enforcement seized millions of dollars in assets, including homes, bank accounts, cash and luxury vehicles.

“Amidst a rise in catalytic converter thefts across the country, the Justice Department has today carried out an operation arresting 21 defendants and executing 32 search warrants in a nation-wide takedown of a multimillion-dollar catalytic converter theft network,” said Attorney General . Garland.

“We will continue to work alongside our state and local partners to disrupt criminal conspiracies like this one that target the American people.”

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

“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, ” he said.

New Jersey is among states across the country that has seen a big rise in the theft of catalytic converters, and insurance claims have risen along with that.

According to a report by the National Insurance Crime Bureau, the increase in catalytic converter thefts nationally has been dramatic. In 2018, there were 1,298 catalytic converter thefts for which a claim was filed. In 2019, it was 3,389 thefts with a claim.

"In 2020, catalytic converter theft claims jumped massively to 14,433, a 325 percent increase in a single year," the bureau said.

Meanwhile, a federal grand jury in the Northern District of Oklahoma returned a 40‑count indictment charging 13 defendants with conspiracy to receive stolen catalytic converters, conspiracy to commit money laundering, and other related charges.

According to court documents, together the defendants bought stolen catalytic converters from thieves on the street, then re-sold and shipped them to DG Auto in New Jersey for processing.

Over the course of the conspiracy, defendant Tyler James Curtis received over $13 million in wired funds from DG Auto for the shipment of catalytic converters and received over $500,000 from Capital Cores for catalytic converters.

Defendant Adam G. Sharkey received over $45 million in wired funds from DG Auto. And defendant Martynas Macerauskas received over $6 million in payments from DG Auto for catalytic converters.

In all these incidents, most of the catalytic converters sold to DG Auto were stolen, and DG Auto knew or should have known that when they paid for them, the government said.

The 13 defendants are - again - Navin Khanna, 39, of Holmdel; and Adam Sharkey, 26, of West Islip, N.Y; Robert Gary Sharkey, 57, of Babylon, N.Y.; Tyler James Curtis, 26, of Wagoner, Okla.; Benjamin Robert Mansour, 24, of Bixby, Okla.; Reiss Nicole Biby, 24, of Wagoner, Okla.; Martynas Macerauskas, 28, of Leila Lake, Texas; Kristina McKay Macerauskas, 21, of Leila Lake, Texas; Parker Star Weavel, 25, of Tahlequah, Okla.; Shane Allen Minnick, 26, of Haskell, Okla.; Ryan David LaRue 29, of Broken Bow, Okla.; Brian Pate Thomas, 25, of Choteau, Okla.; and Michael Anthony Rhoden, 26, of Keifer, Okla.

Other law enforcement officials weighed in on the arrests:

“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 percent 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.”

“In Tulsa alone, more than 2,000 catalytic converters were stolen in the past year,” said U.S. Attorney Clint Johnson for the Northern District of Oklahoma.

“The success of this national takedown highlights the importance and necessity of dynamic law enforcement partnerships that we foster at DHS every single day," said Deputy Secretary John K. Tien of the Department of Homeland Security.

“This calculated, cooperative whole-of-government approach across multiple states illustrates our commitment to protecting the homeland from those who seek to profit from sophisticated schemes. Homeland Security Investigations [HSI] will continue to focus its efforts on keeping these types of criminal elements off our streets while dismantling the groups behind these and other thefts.”

“Just like the precious metal inside every catalytic converter, there’s a money trail at the core of every criminal scheme,” said Chief Jim Lee of the IRS Criminal Investigation. “Our IRS-CI special agents and partners are incredibly well-versed at unraveling financial trails, and this case is not unique. There are real victims here – friends, neighbors, and businesses – and our hope is that today’s arrests will deter similar criminal activity.”

The government explained why catalytic converters are so valuable:

Catalytic converters are a component of an automotive vehicle's exhaust device that reduce the toxic gas and pollutants from a vehicle's internal combustion engine into safe emissions.

Catalytic converters use precious metals in their center, or “core,” and are regularly targeted for theft due to the high value of these metals, especially the precious metals palladium, platinum, and rhodium.

Some of these precious metals are more valuable per ounce than gold and their value has been increasing in recent years, the government said.

The black-market price for catalytic converters can be above $1,000 each, depending on the type of vehicle and what state it is from. They can be stolen in less than a minute, according to authorities.

Additionally, catalytic converters often lack unique serial numbers, VIN information, or other distinctive identification features, making them difficult to trace to their lawful owner. Thus, the theft of catalytic converters has become increasingly popular because of their value, relative ease to steal, and their lack of identifying markings.

Trial Attorney Danbee C. Kim of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Veronica M.A. Alegría for the Eastern District of California, and Assistant U.S. Attorneys Reagan Reininger and David Nasar for the Northern District of Oklahoma are prosecuting the cases.