Los Angeles City Attorney Mike Feuer has filed a civil lawsuit against two businesses that allegedly repeatedly received or sold stolen catalytic converters and failed to keep proper bookkeeping records to cover the allegedly illicit nature of the fencing operation.

“California has more catalytic converter theft than any state in the nation, a problem that’s plagued L.A. motorists for far too long,” Feuer said. In the last four years, the Los Angeles Police Department has received more than 4,367 reports of catalytic converters being stolen from vehicles. The equipment is typically resold on the black market.

In an effort 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 required 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 point 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 Gonzales Brothers LLC, an auto parts recycling business located at 12970 Branford Street in Pacoima and Kinsbursky Brothers Supply Inc., a scrap metal recycler in Anaheim that buys scrap metal and parts from sellers, for alleged violations.

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

During a 2015 surveillance investigation, CCTF allegedly observed employees with Gonzales Brothers engage in numerous cash sales of used catalytic converters, often with known catalytic converter thieves. A subsequent search of the location allegedly recovered tools used to remove catalytic converters, records and over 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 Gonzales Brothers, allegedly purchasing more than 7,000 catalytic converters. From August 2015 through Sept. 18, 2015, Kinsbursky Bros. allegedly purchased 23,822 catalytic converters through 364 transactions.

The lawsuit seeks an injunction against the operators of Gonzales 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.