265 lines
13 KiB
Plaintext
265 lines
13 KiB
Plaintext
September 1990
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MOTOR VEHICLE THEFT INVESTIGATIONS:
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EMERGING INTERNATIONAL TRENDS
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By
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Mary Ellen Beekman
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Special Agent, FBI, New York Field Office
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and
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Michael R. Daly
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Detective, New York City Police Department
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Early one morning in the Bronx, New York, a team of FBI
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Agents and detectives from the New York City Police Department
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(NYPD) watched as car thieves drove a 1987 Mercedes Benz into a
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40-foot freight container. A National Crime Information Center
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(NCIC) check determined the car had been stolen the previous day,
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only a few blocks from where it was being loaded.
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Also, within the hour, a stolen Nissan Pathfinder was loaded
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into the same container. Almost immediately, members of the car
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theft ring drove the container to a port in New Jersey where it
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was to be loaded onto a vessel bound for a foreign port. Before
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the ship set sail, however, U.S. Customs officers intercepted the
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illegal cargo and the vehicles were returned to their owners.
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Unfortunately, most car thieves have more success
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transporting their cargo out of this country. And there are more
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vehicles being stolen than ever before. According to Uniform
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Crime Report (UCR) records compiled by the FBI, there were
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1,432,916 vehicles stolen in the United States during 1988. This
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was an increase of 11.2 percent over 1987 figures, and
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preliminary records for 1989 indicate that rates are still
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increasing. (1)
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The emerging international character of the vehicle theft
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trade contributes to this increase, especially in areas with
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access to large port facilities. Selling stolen vehicles
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overseas, where eager buyers will often pay double the original
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purchase price for a quality automobile, is rapidly changing the
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domestic auto theft trade. Increasingly, vehicles stolen in the
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United States are being shipped out of the country where
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potential profits are far greater. As international trade
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increases and shipping terminals around the country are
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expanded, auto theft rings will have greater access to foreign
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ports.
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CAR THEFT TACTICS
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The above examples demonstrate the relative ease with which
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sophisticated thieves operate in the stolen vehicle trade. Both
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the Nissan Pathfinder and the Mercedes Benz already had been
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equipped with ignition keys and both were in driving condition.
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Information obtained from sources within the car theft ring
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indicated that Nissan Pathfinders and Toyota Forerunners were
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the vehicles of choice among this particular group, simply
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because they were easy to steal. Thieves need only to pop a
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door lock to obtain the ignition key code number. With this
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number and a portable key maker, they make a duplicate key and
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drive away with the vehicle within a relatively short period of
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time, reportedly 7 minutes or less.
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To steal a Mercedes Benz requires more risk and cunning on
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the thieves' part, because the value of the Mercedes decreases
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considerably if damaged. Therefore, it is necessary to steal the
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key along with the vehicle. This is done either by taking the
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car at gunpoint while the driver is stopped for a red light, or
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by deliberately bumping into the rear of the car. When the
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driver gets out to examine the damage, someone jumps in and flees
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with the vehicle, a tactic usually referred to as ``bump and
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run.'' A somewhat less risky tactic is to steal the Mercedes
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from a parking garage, either by stealing the keys or paying the
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attendant for them.
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SHIPPING STOLEN VEHICLES
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Once a vehicle has been stolen, the process of transporting
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it out of the country becomes complicated. For the most part, it
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requires the help of individuals with knowledge of the shipping
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business, usually known in the trade as freight forwarders.
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Freight forwarders get paid to make all the arrangements and
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prepare the necessary shipping documents. Since these
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individuals rarely see the items being shipped, they can be
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easily fooled into shipping illegal cargo.
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Consequently, the documents prepared by freight forwarders
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reflect incorrect information regarding the nature of the cargo.
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An early technique of car thieves was simply to provide
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incorrect vehicle identification numbers (VIN) to freight
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forwarders who, in turn, would list these on shipping documents.
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This was effective until Customs agents became familiar with the
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technique and began to seize increasing numbers of stolen
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vehicles at the docks. As a result, car thieves began to tell
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freight forwarders to list household goods or other items on the
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paperwork in order to further conceal the illegal shipments.
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EMERGING TRENDS
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Where stolen cars were once painted, transported across
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State lines, and delivered to either unsuspecting or
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unscrupulous used car dealerships, shipping stolen vehicles out
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of the country for sale is quickly emerging as the method of
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choice among car theft rings. The United States is becoming a
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supplier of stolen vehicles to third-world countries.
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In one Caribbean country, a survey conducted by various law
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enforcement agencies determined that approximately one out of
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every five vehicles on the docks awaiting Customs clearance
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showed clear signs that it had been stolen and shipped from the
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United States. For vehicles worth over $15,000, the rate
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increased to nearly four out of five.
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In a statement given by an individual convicted of
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interstate shipment of stolen vehicles, the thief claimed that
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almost every vehicle in his native country had been stolen and
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shipped from the United States. This individual also stated that
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these vehicles have visible signs of theft damage. Furthermore,
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he claimed that people in his country order specific types of
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vehicles to be stolen. Buyers are on waiting lists and will pay
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top dollar, often twice the original purchase price, for a
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quality vehicle. Finally, this individual reported that these
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rings are highly developed and would be very difficult to stop.
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DETERMINING THE REASONS
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It is not difficult to understand why shipping stolen
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vehicles overseas has become a preferred method of car theft
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rings. Automobiles have long been a scarce and coveted item in
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many countries. Wealthy citizens are willing to pay large sums
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for quality vehicles.
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In one taped conversation, an individual bragged that he
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could easily make $100,000 a month from shipping stolen vehicles.
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He described his outlays for expenses as follows:
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* $800 to $1,000 for each stolen vehicle, depending on the
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year and the type of vehicle,
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* $2,300 for the container and ocean freight (each container
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holds two vehicles),
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* $300 trucking expenses, and
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* $60 for the freight forwarder.
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A stolen vehicle will often net double its value overseas.
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Therefore, a vehicle valued at $20,000 commands $40,000 in the
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international market. Shipping two containers (4 vehicles) a
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month would net well over $100,000 (tax free).
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Another reason for the relatively unchecked growth of the
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auto theft trade is that it appears to be a ``victimless''
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crime. There are few big losers. Most vehicle owners are
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reimbursed by their insurance companies, and although the
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insurance industry covers its losses by raising premiums, the
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cost is spread out so that it effects everyone only slightly.
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Moreover, the thief rarely goes to jail, and in many local
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jurisdictions, the crime goes virtually unpunished. One
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individual in New York City had been arrested five times for
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auto theft-related crimes, and on one occasion, had actually
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been apprehended while driving a stolen car. Yet, he has not
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spent any time in jail. He has paid fines totaling no more than
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$500, far less than he makes for one stolen vehicle. There
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are presumably many similar stories in the auto theft trade.
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The low apprehension, prosecution, and conviction rate of auto
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thieves make this crime a booming industry, with high profits
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and low risks.
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Geography can be an important factor in determining the
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frequency of auto theft. The proximity to a port where shipping
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lines provide access to foreign countries contributes to high
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automobile theft rates. In New York City alone, the rate of
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auto theft increased 25 percent in 1988. It is not only New
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York, Boston, and Philadelphia that report high theft rates but
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also Houston, Texas; Tampa, Florida; Newark, New Jersey; and
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other cities with large international shipping terminals. In
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fact, according to UCR statistics, 6 of the top 10 cities in
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vehicle theft are in New Jersey (Irvington, East Orange, Camden,
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Elizabeth, Trenton, and Newark), presumably because New Jersey
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has one of the largest ports in the country. (2)
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EMERGING COOPERATION: OPERATION TIERRA MAR
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In a joint investigation, code-named ``Operation Tierra
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Mar,'' the FBI, New York City Police Department, U.S. Customs
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Service, and the U.S. Attorney's Office penetrated several car
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theft rings with international ties. Customs agents scanned
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ship manifests, and from past experience, determined which
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containers had the highest probability of containing stolen
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vehicles. Only these containers were inspected. If stolen
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vehicles were found, they were offloaded and the container was
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shipped empty. In some of these empty containers, Custom agents
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would place a photograph of the vehicle so the individual
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waiting to receive the shipment would not be completely
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disappointed.
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More importantly, shipping the empty containers gave the FBI
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enough time to video tape additional loadings before the thieves
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became aware that their operation was discovered and changed
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their location. Capturing the loading of stolen vehicles on
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video was the single most important factor in convicting the
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people engaged in the scheme.
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As a result of the investigation, 11 individuals were
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convicted and 125 stolen vehicles were recovered. However, even
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this operation, one of the largest of its kind, did not put a
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dent in the illegal vehicle export trade. While investigators
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were completing their cases against these individuals, they knew
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that illegal exporters would be devising new methods of shipping
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stolen vehicles.
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NEW REGULATIONS, NEW TACTICS
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In May 1989, the U.S. Customs Service instituted new
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regulations regarding the exportation of vehicles from the
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United States. As a result of the new rules, an exporter
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attempting to ship a vehicle must provide an original or
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notarized copy of the certificate of title, or other
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documentation proving ownership, to the receiving clerk at the
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point of shipping at least 3 days prior to export.
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About a month after these new regulations took effect,
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illegal exporters devised a way to beat the new system.
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According to informed sources, legally purchased vehicles with
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legal certificates of title are being shipped out of the country
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in compliance with U.S. Customs regulations. When these vehicles
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arrive at a foreign port, the VIN plates are removed and sent
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back to the United States. These VIN plates are then placed on
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similar stolen vehicles. This process is dubbed ``born again,''
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since these vehicles can now be shipped out of the country under
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the cover of a legal certificate of title.
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CONCLUSION
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While auto theft has long been a problem for law
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enforcement, the emerging international character of auto theft
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rings increases the threat of this crime, especially in areas
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near overseas shipping terminals. As international trade
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increases, new ports are constructed and existing ports
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expanded, more cities obtain access to international shipping
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lines. Unfortunately, this also enhances the opportunities open
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to auto theft rings for exporting their illegal cargo out of
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this country.
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As Operation Tierra Mar demonstrates, cooperation between
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Federal, State, and local agencies that have jurisdiction over
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the different phases of the illegal vehicle trade is the best
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way to combat this growing problem. Interagency cooperation
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will be increasingly important as law enforcement faces this
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emerging trend in the auto theft trade.
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FOOTNOTES
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(1) Uniform Crime Reporting Program, Federal Bureau of
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Investigation, Crime in the United States 1989 (Washington,
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D.C.: U.S. Government Printing Office).
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(2) Ibid.
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