https://sanfrancisco.cbslocal.com/2021/06/07/catalytic-converter-theft-precious-metals-manufacturers-middlemen-making-money/ BREAKING:At Least 1 Dead, 99 Unaccounted For; 55 Units Involved In Miami-Area Condo Collapse CBS San Francisco * Menu Sports 49ers A's Stanford Earthquakes Giants Raiders Sharks Warriors Sports Odds Best of Best Of Travel Video [blank_1x1] CBSN Bay Area More Travel Contest & Promotions CBS Entertainment * News All News Bay Area NewsSan Francisco News From KPIX Channel 5 San Francisco News Local NewsSF Bay Area Local News From CBS And KPIX 5 Consumer Tech Business LGBT Environment Politics Entertainment Education HealthWatch Autos Latest Headlines [blank_1x1] 165 Pounds Of Fireworks Seized, Man Arrested In Oakland Crackdown An Oakland man has been arrested and 165 pounds of illegal fireworks were seized following a crackdown by Oakland Police ahead of the July 4 holiday. [blank_1x1] CPUC Tightens Rules On Wildfire-Triggered Public Safety Power ShutoffsCalifornia regulators ordered new guidelines this week for wildfire-triggered power shutoffs that compels Pacific Gas and Electric and other investor-owned utilities to improve their systems for notifying communities of such outages and alleviate their impact. Photos [blank_1x1] IMAGES: Historic Photos Of Damage Left By 1906 Great QuakeOn Sunday, San Franciscans took a few moments to remember the Great Quake of 1906 that killed thousands and destroyed much of the city. KPIX5 Live [blank_1x1] Special Reports * Weather Weather Links Interactive Radar Weather Maps Weather App Weather Videos [blank_1x1] Weather Videos * Sports All Sports 49ers A's Stanford Earthquakes Giants Raiders Sharks Warriors Sports Odds Golden State Warriors [blank_1x1] Golden State Warriors Get Picks No. 7 and 14 in 2021 NBA Draft LotteryThe Golden State Warriors did about as well as could be expected in the 2021 NBA Draft Lottery Tuesday night, getting the number 7 and number 14 picks. [blank_1x1] Warriors President Rick Welts Reflects On 1985 Knicks NBA Draft Lottery WinWhen it comes to the NBA Draft Lottery, retiring Golden State Warriors team president Rick Welts is well aware of how fickle the ping-pong balls may fall. Raiders [blank_1x1] Raiders' Carl Nassib Becomes 1st Active NFL Player To Come Out As GayCarl Nassib, a defensive lineman for the Las Vegas Raiders, became the first active NFL player in league's 100-plus year history to come out as gay. [blank_1x1] High School Amateur in Contention At Midpoint of US Women's Open 17-year-old amateur Megha Ganne followed up a strong opening round by shooting an even-par 71 in the second round at the Olympic Club on Friday and heads into the weekend two shots off the pace set by fellow teenager Yuka Saso. * CBS+ Latest Entertainment News From ViacomCBS SRX Racing Series Heads To Tony Stewart's Home Track At Eldora: 'It'd Be Hard To Bet Against Him' Says Analyst James Hinchcliffe The man known as "Smoke" took the win in the dirt last week. Now, the question is can anyone beat him on his home track in Ohio? [blank_1x1] 'Behind The Music' Comes To Paramount+ On July 29th Featuring LL Cool J, Duran Duran, Fat JoeParamount+ has released the official trailer and key art for the iconic documentary series 'Behind The Music,' introducing Duran Duran, New Kids On The Block and Bret Michaels as featured artists. [blank_1x1] CBS And Flo Rida Team Up For Return Of Hot Summer Originals 'Big Brother' And 'Love Island'CBS has partnered with multi-platinum rapper, singer and songwriter Flo Rida to feature the world premiere of his as-yet-unreleased latest summer anthem, "Summer's Not Ready," in a vibrant promotional campaign for CBS' hot summer originals, 'Big Brother' and 'Love Island.' [blank_1x1] Combate Mixed Martial Arts Coming To Paramount+ And CBS Sports NetworkParamount+ and CBS Sports Network are adding Combate mixed martial arts to their expanding portfolio of sports coverage. [blank_1x1] Perry Mattfeld Says 'In The Dark' Season 3, 'The Stakes Can't Get Any Higher'In The Dark, The CW's successful drama starring Perry Mattfeld, returns this Wednesday night at 9/8c. [blank_1x1] Ed Sheeran Joins 'The Late Late Show With James Corden' Starting June 28thDuring his residency, Sheeran will perform some of his biggest hits each night, as well as the television debut of his new single 'Bad Habits.' * Video [blank_1x1] CBSN Bay Area [blank_1x1] News Videos [blank_1x1] Politics Videos [blank_1x1] Sports Videos [blank_1x1] Weather Videos * More Station Info KPIX 5 Advertise Travel [blank_1x1] Wine Country Sees Surge of Memorial Day Weekend VisitorsIn Napa Valley, there is relief that COVID-19's grip may be coming to an end. As a result, a lot of people are treating Memorial Day weekend as a kind of spring break from the pandemic. [blank_1x1] Memorial Day Weekend Air Travel Set to Soar as Motorists See Highest Gas Prices in YearsWith fears of pandemic fading, Californians are taking to the skies and roads this Memorial Day. Too bad the price of fuel is at its highest in years. [blank_1x1] San Jose Airport Adds Over 300 Airport Parking Spaces to Meet DemandMineta San Jose International Airport plans to add more than 300 parking spaces Saturday to meet growing demand as COVID-19 restrictions ease and people begin traveling again. More [blank_1x1] CBS+ CBSN Bay AreaWatch Now [ ][Reset][] Catalytic Converter Theft: Manufacturers, Middlemen Making Money From Wave Of Thefts By Kenny ChoiJune 7, 2021 at 10:21 am Filed Under:Catalytic converters, Crime, Precious Metals, Theft [30h-BAY-wh] SAN FRANCISCO (KPIX 5) -- Catalytic converters, the smog-reducing devices connected to the tailpipe under your car, are a prime target for thieves these days. For a street-level crime, it's very lucrative: a thief can get several hundred dollars for just one catalytic converter. But we've learned there are big players behind the scenes who are raking in much more than that. Thefts of catalytic converters hit record highs last year according to insurance industry data. Under cover of the night, thieves slither under cars armed with a flashlight and a battery-powered saw, slice the prized converters off, and dash away. READ MORE: 165 Pounds Of Fireworks Seized, Man Arrested In Oakland Crackdown "These guys, they are like NASCAR!" said Steve Elstins with West Coast Muffler in Concord. "They pull up, there's a jack guy, there's a saw guy." "It's probably taking less than two minutes," said Chris Sullivan with the Smog Shop in San Francisco. Muffler shops across the Bay Area and the state are seeing an all-time record number of victims coming in. "I've got four vehicles here today," said Elstins. "Oh yes, I mean it's tenfold," said Sullivan. What the thieves are after is what is inside this catalytic converter. It's a honeycomb that contains precious metals: platinum, palladium - and most precious of all - rhodium, currently worth 15 times more than gold. "The price was probably $2,000 a year ago, then it shot to $4,000 and now it's $28,000," said Jeffrey Christian with commodities research firm CPM Group. And that's per ounce. Christian says the skyrocketing price reflects extremely short supply. Rhodium is a byproduct of platinum mining, that's way down due in part to the pandemic. At the same time emission standards around the world are up, especially in China. So demand is higher than ever. It's the perfect storm for catalytic converter thieves who have become so brazen they'll even strike during the day. Police have made some high-profile arrests. The biggest last summer in Elk Grove near Sacramento netted more than 1,700 catalytic converters and $300,000 dollars in cash. "That was kind of like hitting the lottery for us," said Sacramento County Sheriff's Detective Tom McCue, who led a multi-agency task force on the case. McCue the street-level thief will sell a catalytic converter for on average $200 bucks to a middleman. The middleman waits until he has about 10-to-20 devices. Then he takes his cut and sells his load to the fencing operation. READ MORE: CPUC Tightens Rules On Wildfire-Triggered Public Safety Power Shutoffs From there investigators say the converters go to underground de-canners who cut the canisters open and take out honeycombs full of precious metals inside. Those honeycombs are then sent to illegal smelters. "The main ones are up in Oregon. But there are some illegal smelting operations that I have heard of that are in Stockton and Southern California," said McCue. "I would say that network is larger than California. It's vast." Once distilled, the precious metals are untraceable and are sold to manufacturers around the world to make new catalytic converters to replace the stolen ones. It's a vicious cycle that is causing lots of people lots of pain, especially if you don't have insurance to cover the loss. "Where are you going to come up with $2,000? People that are housekeepers, the construction workers, they get to their job with their cars and they need it. If you don't have your car there's no job," said Lucero. But catching the bad guys isn't easy. Because even though selling the converters without the proper paperwork is illegal, possessing them is not. "We would like to see it illegal to possess them unless you have the paperwork," said McCue. For now, car owners without garages have few options: One is to deter thieves with anti-theft devices. And Toyota now offers a custom covering plate. Prius catalytic converters contain more precious metals than other cars of similar size. Investigators like McCue believe it's the manufacturers who should ultimately be stepping up to the plate, by incorporating anti-theft designs right from the start, on the assembly line. Unfortunately, he suspects they have no incentive to do the right thing because they also manufacture the replacement parts. "This is a huge moneymaker for them," sais McCue. "Because every time your catalytic converter gets stolen, it has to be purchased and it is purchased from the manufacturer." We reached out to Toyota, Honda and Ford for comment on the story. Ford never got back to us, Honda had no comment. Only Toyota responded, sending us the following statement: "Catalytic converter theft is an industry-wide challenge. While the Prius is just as much at risk as any other vehicle, Toyota and Lexus have sold more than 4 million hybrids in the U.S., more than all other manufacturers combined. We want to remind drivers to follow the basics to protect their vehicles against theft - such as parking as close to entrances as possible in well-lit areas. While not the solution to the problem as a whole, taking preventative measures like smart parking and adding the Vehicle Identification Number (VIN) to the catalytic converter can help protect drivers from theft." MORE NEWS: COVID Vaccines: San Francisco Moscone Center, City College Mass Vaccination Sites To Close Meanwhile, for victims of these thefts, it's a double-whammy. Not only do they often have to shell out big bucks, but they also have to wait weeks, because the shortage of precious metals also means a shortage of parts. [sanfrancis] Kenny Choi [blank_1x1] More from Kenny Choi Follow Us facebook_url twitter_url youtube_url instagram_url reddit_url linkedin_url Our | Newsletter Most Viewed * California EDD Will Require Proof of Job Search To Collect Benefits Beginning In July California EDD Will Require Proof of Job Search To Collect Benefits Beginning In July * SJ Dad Claims Santa Cruz Boardwalk Guard Kicked Him Out, Calling Pinoy Pride Tattoo 'Gang-Related' SJ Dad Claims Santa Cruz Boardwalk Guard Kicked Him Out, Calling Pinoy Pride Tattoo 'Gang-Related' * SEE IT: Florida Man Refuses To Sell Family House Now Swallowed By Massive Development SEE IT: Florida Man Refuses To Sell Family House Now Swallowed By Massive Development * DMV Offers Free Real ID Upgrade To Californians Who Renewed Licenses By Mail During Pandemic DMV Offers Free Real ID Upgrade To Californians Who Renewed Licenses By Mail During Pandemic * California EDD Fraud Conviction Leads To 6-Year Prison Term For Stockton Man California EDD Fraud Conviction Leads To 6-Year Prison Term For Stockton Man * UPDATE: San Francisco Fisherman's Wharf Hit-And-Run Victim Identified As Hotel Worker Headed Home UPDATE: San Francisco Fisherman's Wharf Hit-And-Run Victim Identified As Hotel Worker Headed Home * Report Reveals San Jose State University's $4 Billion Economic Impact On California Report Reveals San Jose State University's $4 Billion Economic Impact On California * CHP Chase Following I-880 Shooting Leads To Major Fremont Crash; Suspect Arrested CHP Chase Following I-880 Shooting Leads To Major Fremont Crash; Suspect Arrested * Catalytic Converter Theft: Manufacturers, Middlemen Making Money From Wave Of Thefts Catalytic Converter Theft: Manufacturers, Middlemen Making Money From Wave Of Thefts * CHP: Distracted Father Triggered Frightening Bay Bridge Crash CHP: Distracted Father Triggered Frightening Bay Bridge Crash CBS San Francisco Follow Us FacebookTwitterYouTubeInstagramRedditLinkedIn News Bay Area NewsSan Francisco News From KPIX Channel 5 San Francisco News San Fran WeatherSan Francisco Bay Area Weather From CBS And KPIX Business Politics HealthWatch Tech Entertainment Sports Raiders SF Giants Sharks Warriors Other Best Of CBS+ Travel Corporate About Us Advertise Connect CBS San Francisco (c)2021 CBS Broadcasting Inc. All Rights Reserved. Powered by WordPress VIP By viewing our video content, you are accepting the terms of our Video Services Policy * Privacy Policy * Terms of Use * California Privacy/Info We Collect * Do Not Sell My Personal Information * Mobile User Agreement * Ad Choices * Public File for KPIX-TV / CBS 5 * Public File for KBCW-TV / KBCW 44 Cable 12 * Public Inspection File Help * FCC Applications * EEO Reports