Scrap Metal Dealers Face Charges in First Mobile Prosecution Under Catalytic Converter Law

SEATTLE (Scrap Monster): Two Georgia men next month will answer allegations that they illegally purchased catalytic converters in the first local use of a new law designed to stamp out the black market for the devices.

Mobile police arrested Denis Ferhatovic, 28, of Auburn, Georgia, and Jasar Music, 40, of Hoschton, Georgia, last month and charged them with 14 counts each of possession of catalytic converters without proper paperwork. They also each face a separate misdemeanor charge alleging they violated rules applying to the secondary metals market.

The prosecution comes after the Alabama Legislature earlier this year passed a new law regulating catalytic converters, devices that remove some of the pollutants emitted through the tailpipes of motor vehicles. That law took effect in June.

“The purpose of it is to try and address the epidemic of catalytic converter thefts,” said Mobile County Assistant District Attorney Clay Rossi.

 A decade ago, a law sponsored by Mobile County Circuit Judge Ben Brooks – at the time, a state senator – required a catalytic converter seller to provide signed statement confirming rightful ownership of the device. The new law added additional requirements, including paperwork detailing the make and model of vehicle that the catalytic converter was removed from and the vehicle identification number.

The statute also requires a copy of the certificate of title or registration showing the seller’s ownership interest in the vehicle.

“There’s extensive documentation called for by the statute to try and curb illegal possession and the stealing of catalytic converters,” said Rossi, who heads the white-collar crime section of the District Attorney’s Office.

James Byrd, an attorney who represents both defendants, said his clients are involved in a legitimate scrap metal business in Georgia that is licensed, bonded and insured. He said they got a cold call from a man in Mobile County offering to sell catalytic converters. Based on the fact that the seller has not been charged in connection with the case – and the man’s extensive criminal record – Byrd said he believes that seller was working with law enforcement investigators to set his clients up.

“My clients were inclined to buy scrap metal, but they weren’t inclined to commit crimes,” he said. “They thought they were doing it legitimately.”

Few dispute that catalytic converter thefts have become more common, fueled by high prices for metals contained in the devices. A theft can cost car owners hundreds of dollars a pop.

According to the National Insurance Crime Bureau, catalytic converter theft claims skyrocketed from 1,298 in 2018 to 14,433 nationwide in 2020. Experts say that likely captures just a fraction of the overall number of thefts.

The price of rhodium, one of the metals in catalytic converters, has dropped somewhat but it still is fetching $12,400 per ounce. Prices also remain high for palladium and platinum, metals currently trading at $1,630 and $989 per ounce, respectively.

Byrd said the man who sold his clients the catalytic converters arranged a meeting in a field. That violate the law, which requires such transaction to take place at a business location. He said that and other provisions of the law tripped up his clients, but he added that they believed they were complying with the law.

Courtesy: www.fox10tv.com