6 people charged with handling stolen catalytic converters in southeastern Pennsylvania.

District attorneys in Montgomery and Delaware counties announced charges Thursday in a long-running joint investigation into a catalytic converter ring that trafficked vehicles that were targeted in attacks in Philadelphia and its suburbs.

“The theft of catalytic converters from vehicles has left a trail of fear in our neighborhoods over the past several years,” Delaware County District Attorney Jack Stollsteimer said in a statement. “By working together, law enforcement has disrupted and removed this dangerous ring of thieves from our streets and hopefully restored a sense of calm in the knowledge that such lawlessness will not be tolerated.”

According to information provided by the agency, five men have already been arrested.

They are Daniel McIlhenney, 37, and his brother Ryan McIlhenney, 36, both of Folcroft; Terrell Gibson, 40, of Chester; Sharief Louden, 30, of Philadelphia; and Loai Nasser, 49, of Cherry Hill, New Jersey.

An arrest warrant was also issued for another man, 29-year-old Ali Sayyam of Ocean, New Jersey.

“These organized gangs of thieves were responsible for a significant portion of catalytic converter thefts in the southeastern Pennsylvania region,” Montgomery County District Attorney Kevin Steele said in a release. “They have caused significant financial hardship to vehicle owners while undermining the safety of our communities. By taking down this gang of thieves, we are sending a clear message that this type of criminal activity and other organized gangs of thieves in Montgomery and Delaware counties will be aggressively investigated and prosecuted.”

According to a press release and a 61-page criminal complaint prepared by Montgomery County Detective James Carbo and Delaware County Detective Brian Patterson:

In June 2022, investigators learned that a “ring” of thieves was operating “statewide,” stealing catalytic converters and selling them at various scrap yards, including two on 61st Street in Philadelphia: Big Head Auto Salvage, run by the McIlhenneys, and Philly Auto Salvage, run by Nasser and Sayyam.

The thefts were motivated by the surge in precious metals prices during the COVID-19 pandemic. Catalytic converters have become a favorite target for thieves because of their ease of dismantling and the fact that the devices contain metals such as platinum, palladium and rhodium. Rhodium at one point sold for $31,000 an ounce, although it has since fallen to about $4,500 an ounce.

The “cutting crew” targeted vehicles parked in high-traffic areas like shopping malls, business parks, Philadelphia International Airport, and Drexel University. The crews became so skilled that they could lift a vehicle, remove the catalytic converter, and lower it back down in less than two minutes.

Prices for the devices ranged from $300 to $1,200, depending on the make of vehicle.

Investigators determined that Daniel McIlhenney was aware of every catalytic converter theft transaction that occurred in Big Head and that no catalytic converter was purchased without his consent.

The two target salvage yards would sell the stolen devices to various other outlets. In 2023 alone, records show that Philly Auto Salvage sold more than $1 million worth of converters, while Big Head reported sales of more than $300,000.

The complaint describes numerous trips by Daniel McIlhenney personally to another scrapyard on Essington Avenue, where he sold converters and other items. That yard recorded the transactions, but Big Head had no records of any of them.

Investigators searched both salvage yards in March, as well as Daniel McIlhenney’s home. While Big Head used several methods to record sales, there was no record of the purchase of converters in any of the ledgers, only occasional notes in a notebook, such as “cat $80” or “cat $45.”

Evidence recovered from Philly Auto Salvage showed that 1,245 catalytic converters were sold from January through February for a total of $100,677. However, inventory records showed that only 943 converters were replaced, meaning the company did not document more than 300 converters in a two-month period. One receipt also showed that Nassir received more than $143,000 for catalytic converter sales in a single day in 2023.

One theft victim reported that she was quoted $4,200 to replace one stolen converter.

The investigation used a wide range of techniques, including interviews, undercover transactions, surveillance, call records, and cellphone data extraction. It involved multiple law enforcement agencies, including nearly 20 police departments, the Pennsylvania State Police, the Bucks County Detective Bureau, and the Federal Bureau of Investigation.

Each of the Montgomery County defendants faces 18 charges, including participating in a corrupt organization, theft, receiving stolen goods, conspiracy and related offenses.

Those arrested were arraigned before District Judge Patrick Krouse, who set bail at $99,000 cash for Daniel McIlhenney, Ryan McIlhenney and Loai Nassar, 10 percent of $50,000 for Gibson and $100,000 unsecured for Louden.

All posted bail Wednesday through bail agents except Louden, who was already free.

A preliminary hearing is scheduled for Aug. 19 before Krouse. Calls to defense attorneys were not returned Thursday.

The prosecutors will be Assistant District Attorneys Christopher Taft and Gwendolyn Kull, captain of the Economic Crimes Unit.

Although the McIlhenney brothers and Nasser and Sayyam were the operators of the scrap yards, the roles of Gibson and Loudon have not been determined. It is also unclear whether the “cutting crew” has also been charged.

Originally published: August 8, 2024 at 7:30 PM