Comment by ineptech | Hacker News Reader

Comment by ineptech | Hacker News Reader

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Treating this press release like a story problem in 5th grade math, there's something off:

> Last year approximately 1,600 catalytic converters were reportedly stolen in California each month, and California accounts for 37% of all catalytic converter theft claims nationwide.

> The black-market price for catalytic converters can be above $1,000 each, depending on the type of vehicle and what state it is from.

> Defendants ... operated DG Auto... DG Auto sold the precious metal powders it processed from California and elsewhere to a metal refinery for over $545 million.

How did they make $545M in a racket whose upper limit on annual profit is a tenth of that? Perhaps that figure represents DG Auto's gross revenue, only a portion of which comes from recycling converters?

1) maybe they ran the ring for more than a decade?

2) 1600 is just the number reported. I’d imagine not many people report the thefts, especially if your car insurance premiums will rise (insurance companies raise premiums even if you don’t make a claim if they have information that suggests your neighborhood or places you frequent are at increased risk of theft)

3) possibly the rate of catalytic converter thefts has risen dramatically in 2022 compared to 2021

can confirm 2 and 3 in my area

> > Defendants ... operated DG Auto... DG Auto sold the precious metal powders it processed from California and elsewhere to a metal refinery for over $545 million.

> How did they make $545M in a racket whose upper limit on annual profit is a tenth of that? Perhaps that figure represents DG Auto's gross revenue, only a portion of which comes from recycling converters?

Because the converters themselves are only worth $1k each on the black market, but apparently quite a bit more if stripped and processed further, to bare precious metal powders, which are much easier to work with.

$1K was the high end, most of 'em cost less than that new.

The police? Inflating the value of something associated with criminality so it sounds worse than it really is?

It can't be.

/s

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