Two Long Island Brothers Indicted in Mass Catalytic Converter Racket

By Matis Glenn

Two brothers and a co-conspirator have been indicted on charges that they trafficked stolen catalytic converters, extracted the precious metals inside the prized car parts and sold the metals for hundreds of millions of dollars.

Alan and Andrew Pawelsky, of Long Beach, were charged with 81 counts related to money laundering and the sale of stolen property, allegedly knowing that the parts they were working on were stolen.

The arrests come amid a rise in catalytic converter thefts nationwide.

Catalytic converters contain valuable metals Rhodium, Palladium and Platinum, which are used to manage exhaust and reduce emissions.  

Thieves are often able to stealthily steal a converter within a few minutes.

Alan, 28, owns a company named Ace Auto Recycling, which allegedly received $170 million from 2021 to 2022 from a refinery that weighed, valued and paid for the precious metals.

The stolen car parts came from all across the country, as far away as California.

Both brothers pleaded not guilty. If convicted, they face up to 25 years in jail.

Co-defendant Jovanie Clarke, of Flushing, allegedly sold stolen catalytic converters directly to Andrew, 25, on several occasions.

“These defendants allegedly purchased truckloads of catalytic converters, many of them stolen from across the country, and siphoned them of precious metals that have seen skyrocketing value in recent years. The metals were allegedly sent to refineries and weighed, netting the defendants more than $170 million,” Nassau District Attorney Anne T.  Donnelly said in a statement. “Catalytic converter theft remains one of the fastest growing crimes across the Country and here in Nassau County. Working together with our partners on the local and federal levels, we will continue to pursue organized criminal networks dealing in stolen catalytic converters and protect our residents from these schemes.”

Homeland Security agents say that the black market for catalytic converters extends into other crimes as well.

“Not only are catalytic converter thefts extremely costly to victims, but oftentimes, these types of crimes fund larger criminal enterprises that put the community and country at a greater risk,” Homeland Security Investigations New York Special Agent in Charge Ivan J. Arvelo said in a statement. “Today’s arrests of brothers Alan Pawelsky and Andrew Pawelsky, as well as their alleged co-conspirator, demonstrates that HSI remains committed to leveraging our capabilities with our local law enforcement partners to bring these criminals, as delineated in the grand jury indictment, to justice.”