47 Arrested in Crackdown on Alleged Car Theft Rings

PHILADELPHIA —  Two Philadelphia-based car theft rings that stretched across five states and stole thousands of cars worth $40 million have been shut down, federal authorities said Thursday.

Forty-seven people were arrested Thursday morning in Philadelphia and New Jersey, from alleged gang leaders to body shop employees who allegedly duplicated car titles.

“These auto theft rings affect the quality of life for most of us more than the high-profile, sensational violent crimes,” U.S. Atty. Michael Stiles said.

The two separate operations stole cars in Pennsylvania, New Jersey, New York, Maryland, Delaware and Georgia.

Prosecutors described a network of junkyards, body shops and thieves with a hotline that would allow orders to be placed for stolen cars and parts.

“Somebody in a chop shop says he needs a black Oldsmobile Intrigue door. . . . Somewhere down the line, somebody goes and steals a black Oldsmobile Intrigue,” Stiles said.

About 20% of the cars were stolen at the request of their owners for insurance scams, prosecutors said. The thieves would keep the cars, and the owners would collect insurance money.

“These are legitimate members of the community. Someone buys a lemon and does not want to continue making car payments. They know someone or someone approaches them and they say, ‘Could you arrange to have it stolen?’ ” said Philadelphia Dist. Atty. Lynne Abraham.

Prosecutors said they are pursuing charges against people who bought stolen cars or asked to have their cars stolen. A small portion of the stolen cars were sent by ship to China.

The leaders of one operation, Frank Ozga III and Patrick Smith Sr., worked out of body shops and two junkyards in Philadelphia since 1991, according to the indictment.

Ozga and Smith are accused of money laundering, replating violations and failing to report $1.2 million in illegal income. Other defendants were charged with stealing, chopping, delivering or putting fake plates on stolen cars or car parts.

The second ring was alleged to have earned $23 million for delivering and selling stolen cars between 1995 and 1997.

The suspects allegedly stole cars from shopping malls, car dealerships and airport and hotel parking lots in Philadelphia, then drove the cars to New York. They allegedly stripped and replaced the ID numbers and license plates and resold them in Philadelphia or Georgia.