Minnesota Men Indicted in Multi-Million Dollar Interstate Catalytic Converter Theft Ring

(KNSI) — Four Minnesota men have been indicted for their roles in a multi-million dollar scheme to transport stolen catalytic converters across state lines.

According to documents filed in federal court, 34-year-old James Dillon Jensen of Minneapolis, 32-year-old Justin Tyme Johnson of St. Paul, 41-year-old John Charles Kotten of Hutchinson, and 31-year-old Soe Nye Moo of St. Paul are among several suspects who participated in a scheme to get their hands on stolen catalytic converters and sell them for huge amounts of money in other states.

Catalytic converters use precious metals in their center, or “core,” and are regularly targeted for theft due to the high value of these metals. The black-market price for catalytic converters can be above $1,000 each. The theft of catalytic converters has become increasingly popular because of their value, relative ease of stealing, and lack of identifying markings.

Prosecutors allege the ring leaders would send out street level cutters to steal the parts from around the state and bring them to Johnson or Kotten, who would buy the converters. Sometimes, they would steer the cutters to buyers acting on their behalf, such as Jensen and Moo. The items would then be packed into U-Haul trailers or personal vehicles and driven elsewhere for payment through cash, wire transfer or both.

To conceal their scheme, Kotten and others purchased scrap or junk cars from individual sellers or at auction to make it appear as though they were involved in a legitimate automotive scrapping and recycling business in the event they were audited or investigated.

In total, the conspiracy netted approximately $21 million from a small number of high volume buyers in Colorado, New Jersey, New York and Oklahoma.

The four are charged with conspiracy to transport stolen property interstate. Johnson and Kotten are charged with interstate transportation of stolen property, conspiracy to commit money laundering, and false statements to a financial institution. Johnson was also charged with conspiracy to commit money laundering – concealment, and Moo was charged with possession of a machine gun.

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