California family busted after netting nearly $40m from stolen catalytic converters
If you haven’t had your catalytic converter stolen, you probably know someone who has. Depending on the car and damage done, it can be an incredibly expensive part to replace—getting close to $2,000 if the entire exhaust system needs replacing. Many insurance companies won’t cover it either, due to the cost of repairs and frequency of occurrence.
Thieves target the catalytic converter because of platinum, palladium, and rhodium—three precious metals used to reduce emissions. Palladium in particular is worth more than gold in recent years, due to its conducting capabilities in connectors and circuit boards, jewelry, and even some pharmaceuticals.
Thieves steal catalytic converters frequently because they only need a few minutes and a battery-powered saw to remove them from a car’s exhaust system. The inability to track stolen parts makes them even more attractive targets.
A family in Sacramento, California, figured out that the high population and lack of effective preventive measures made for an easy market to tap into. Brothers Tou Sue and Andrew Vang worked with their mother, Monica Moua, bought stolen catalytic converters from local thieves, and sold them to a buyer in New Jersey for $38 million. KCRA reports that Vang was found guilty of money laundering, too.
The family’s crime empire spread far and wide
To reach more buyers and recruit more thieves, the brothers created an app that allowed people to browse stolen goods, even organizing them by make and model. They conducted business from their home and several warehouses they owned.
The more thieves they recruited, the more catalytic converters they collected, thus making more money.
“This defendant led a network of criminals that hurt thousands of innocent car owners,” said Michele Beckwith, a prosecuting attorney. “This case represents the kind of far-reaching investigation that federal, state, and local law enforcement partners can do when working together. The U.S. Attorney’s Office is committed to continuing its law enforcement partnerships to disrupt criminal conspiracies like this one that target the American people.”
Vang used the nearly $40 million to buy dozens of cars, a five-acre multi-home complex in Rio Line for $1.235 million, and another home in Sacramento.
Tou Sue Vang received a 12-year prison sentence for his role, while the sentence for his brother and mother remains unclear.
The US government had to forfeit some, too
Part of Vang’s sentence required the United States government to surrender $150,000, more than a dozen cars, four boats, jewelry, and property.
Authorities brought in 12 people from New Jersey for questioning, in addition to the family. The family pleaded guilty to shipping $600 million worth of catalytic converters to metal refineries in New Jersey. They received $39 million for a shipment weighing over 1,000 lbs.
KCRA reported in October 2023 that authorities processed more than 20 thieves connected to the thefts.