Los Angeles files lawsuit against two metal recyclers

Los Angeles files lawsuit against two metal recyclers
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Los Angeles City Attorney Mike Feuer has filed a civil lawsuit against Gonzalez Brother LLC and Kinsbursky Brothers Supply Inc. (KBI), which allegedly received or sold stolen catalytic converters and failed to keep proper bookkeeping records to cover the allegedly illicit nature of the fencing operation.

The Feuer release notes that in just the last four years, the Los Angeles Police Department (LAPD) has received more than 4,367 reports of catalytic converters stolen from vehicles, typically resold on the black market.

To curb the growing trend of catalytic converter thefts, the California legislature adopted California Senate Bill 267 in 2009, requiring businesses or individuals who purchase used catalytic converter parts to follow strict record keeping and payment requirements. Unless otherwise exempted, purchasers of catalytic converters are to keep detailed records of the date, name, driver’s license number and description of the parts purchased, and are prohibited from providing cash payments at the time of sale.

In April, 2015, the LAPD formed the Catalytic Converter Task Force (CCTF) to investigate, identify and target the illicit market for catalytic converters in Los Angeles. The City Attorney’s lawsuit alleges that the CCTF identified Gonzalez Brothers LLC, Pacoima, California; and Kinsbursky Brothers Supply Inc., Anaheim, California, for alleged violations of the law. 

The lawsuit alleges the operators of Gonzalez Brothers knowingly purchased thousands of stolen catalytic converters off the black market and resold them to other recyclers, including the operators of Kinsbursky Brothers. The businesses allegedly avoided required recordkeeping and payment obligations to facilitate the fencing and laundering of stolen property.

During a 2015 surveillance investigation, CCTF allegedly observed employees with Gonzalez Brothers engage in numerous paperless, cash sales of used catalytic converters, often with known catalytic converter thieves. A subsequent search warrant of the location allegedly recovered tools used to remove catalytic converters, various records and more than 300 catalytic converters. None of the records involving catalytic converter sales were alleged to contain the identifying information required by law and investigators did not locate any written agreements with other businesses regarding accepting and recycling converters.

Further investigation by CCTF discovered Kinsbursky Bros. was one of the largest buyers of Gonzalez Brothers, allegedly purchasing more than 7,000 catalytic converters over the course of 2-1/2 years. Between August, 2015, and September 18, 2015, alone, Kinsbursky Bros. allegedly purchased 23,822 catalytic converters through 364 transactions from a variety of sellers.

The lawsuit alleges that none of the transactions included the legally mandated information that Kinsbursky Bros. was obligated to retain. CCTF officers also failed to locate, and were not provided, any written agreements between Kinsbursky and any other business regarding accepting and recycling catalytic converters, as required by law. 

Following the L.A. City Attorney’s charges, Kinsbursky Bros. (KBI), through its attorney, released a statement refuting the charges.

“KBI vigorously and categorically denies these allegations and is confident that it will be vindicated once this matter is fully litigated,” said their attorney Eliot Krieger in the statement.

Krieger continues, noting that both the company and he were stunned by the accusations because he and KBI have been working with the Los Angeles City Attorney’s Office over the last six months demonstrating their compliance with all recordkeeping requirements.

In the statement, Krieger continues, “KBI retains detailed records of all transactions it undertakes for used catalytic converters. This appears to be a shake-down by the City Attorney’s Office targeted at an Orange County business which has always worked with law enforcement in Orange County to stay in compliance with the law.”

In addition, Krieger explains that KBI has also actively utilized a reporting system established by the City of Anaheim police department to report purchases of catalytic converters.  

The statement also points out that KBI’s good will is essential to conducting its business and is concerned of the impact that the meritless accusations may have on its 60-year-old operation as a third-generation family business. Krieger stated that “KBI looks forward to presenting its case and proving that the city’s claims are entirely without merit.”

The lawsuit seeks an injunction against the operators of Gonzalez Brothers and Kinsbursky Bros., prohibiting further illegal activity and enjoining them from operating as a clearing house for stolen catalytic converters. The lawsuit also seeks civil penalties up to $2,500 for each violation.  

Multiple phone calls to Gonzales Brothers for comment were met with a busy signal.

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Source: Recycling Today
Los Angeles files lawsuit against two metal recyclers
<![CDATA[Los Angeles City Attorney Mike Feuer has filed a civil lawsuit against Gonzalez Brother LLC and Kinsbursky Brothers Supply Inc. (KBI), which allegedly received or sold stolen catalytic converters and failed to keep proper bookkeeping records to cover the allegedly illicit nature of the fencing operation. The Feuer release notes that in just the last four years, the Los Angeles Police Department (LAPD) has received more than 4,367 reports of catalytic converters stolen from vehicles, typically resold on the black market. To curb the growing trend of catalytic converter thefts, the California legislature adopted California Senate Bill 267 in 2009, requiring businesses or individuals who purchase used catalytic converter parts to follow strict record keeping and payment requirements. Unless otherwise exempted, purchasers of catalytic converters are to keep detailed records of the date, name, driver’s license number and description of the parts purchased, and are prohibited from providing cash payments at the time of sale. In April, 2015, the LAPD formed the Catalytic Converter Task Force (CCTF) to investigate, identify and target the illicit market for catalytic converters in Los Angeles. The City Attorney’s lawsuit alleges that the CCTF identified Gonzalez Brothers LLC, Pacoima, California; and Kinsbursky Brothers Supply Inc.,…