The Shocking Tale Behind Catalytic Converter Theft

The previous chart shows how many people searched the term "catalytic converter theft."

There's a significant dropoff. So, what happened? 

Well, the story is as complex as it is fascinating. It involves a global pandemic, mining, and a mysterious white truck. 

Chaos, and no one knows why

We knew catalytic converter theft was "a thing." One or two acquaintances might have been victims, but it wasn't a nationwide crisis. 

Then, seemingly out of nowhere, thieves stole them left and right.

The following chart shows the average number of monthly claims of catalytic converter theft, according to the National Insurance Crime Bureau (NICB).

What's even more amazing is that the average for 2008 was 270, and the average for 2015 was 396. So, 2019 was seemingly normal, but then, it spiked. 

Correct that. 

Spiked is an understatement. 

It skyrocketed, but why?

A logistic nightmare

The pandemic was crazy. We had no idea whether we'd live the rest of our lives in lockdown.

Plus, to make matters worse, the world's supply chain went haywire. 

Shipping, ground transportation, and air freight all collapsed. When the world slowly reopened its doors, it took time for logistics to straighten up.

Therefore, expensive things got more expensive, and that's where the catalytic converter comes into play. 

Check out this article to learn how the pandemic affected inflation and how we're still reeling from it. Yikes, look at those concert ticket prices. 

What's a catalytic converter?

Catalytic converters are critical parts of your vehicle's exhaust system.

In short, a catalytic converter controls your vehicle's emissions by reducing toxic exhaust gases into less-toxic pollutants. 

It's so important that you can't sell a car without a catalytic converter. Here's our article on the topic. 

How do they do it? They use heat and something we'll call PRP, which stands for platinum, Rhodium, and Palladium. 

These three metals are as expensive as they sound.

Check out this awesome video to learn more about how a catalytic converter works. 

Spoiler alert: it has a see-through catalytic converter, and that's cool.  

These three metals are used in catalytic converters to reduce emissions. At the same time, PRP has other uses, such as coating fiber optics for industrial lighting. 

So, people are willing to pay big bucks for them. 

Unfortunately, PRP prices surged during the pandemic.

For example, an ounce of Rhodium was $3,000 in 2019. In 2021, it was $26,000!

Check out the charts in this article to understand how mineral prices have changed. 

With such prices, it was no wonder theft had increased, but what surprised many was how complex and massive the theft ring was.

Who was behind the theft?

We know all this because of a suspicious white truck driving through southeast Tulsa. 

An off-duty police officer stopped the truck and found a loaded handgun, three grams of cocaine, eight grams of heroin, and $9,900 in worn-out bills. 

Oh, and 128 catalytic converters, all with jagged ends. 

Tyler Curtis was the man driving the pickup. He owned an automobile recycling warehouse in Oklahoma, where he accepted catalytic converters. 

Curtis was arrested for possession of drugs and an unpermitted firearm, but what about the cats?

Curtis didn't have the required license to possess so many converters. 

This made him a suspect, so the police obtained a warrant to search his phone and iPad and landed on one suspect: Navin Khanna. 

Khanna and his brother had owned several failed businesses, including rubber disposable and recycling. 

It wasn't until they created DG Auto Wreckers, a company dealing with auto wrecks, in 2019 that they became successful. 

As the price of PRP rose, DG Auto Wreckers prospered. 

In one year (from 2021 to 2022), the company had received $224 million in a single account from a mining company in Japan, which processed PRP. 

How did DG Auto Wreckers get the PRP? By buying them in bulk. 

Facebook conversations showed that DG Auto Wreckers was in touch with Curtis. 

These text messages also revealed that Curtis told an undercover informant, "it doesn't not matter where they (the catalytic converters) come from."   

The problem was bigger than expected

The issue with catalytic converters is that they don't have an identifying VIN number. 

So, once you chop it off a car, you can sell it to anyone. 

Plus, there's little risk if the buyer doesn't care where the converters come from. After all, these were shipped and processed overseas. 

It turns out that Curtis wasn't the only provider. 

Other companies operated in the same way. 

After months of investigation, authorities were finally able to track down DG Auto Wreckers and trace the money. What they discovered was astounding. 

Theft rings were all over the country. Similar companies have been found in Kansas, Houston, Colorado, Minnesota, California, and Oklahoma. 

70 local and federal agencies were involved in Operation Heavy Metal (the best name for a police operation).

In total, 21 arrests were made, and the entire catalytic converter theft operation was estimated to have made $545 million. 

And it's all thanks to a mysterious white truck. 

This, of course, is a summary. If you want to read more in detail about the situation, here's a great piece on the LA Times. 

After the ring was busted, catalytic converter theft did drop, but not as fast as many expected, meaning they were still coveted. 

That was until the price of PRP dropped, causing theft to continuously drop closer to pre-pandemic levels. 

However, there's still a risk. 

Check out this video on catalytic converter protection. 

So, if you want to know whether your insurance company covers catalytic converter theft, you can check our article here.