Modus Operandi Read online

  Chop shops have one or more of the following indications that illegal activity is being conducted: Juveniles are the leading individuals when it comes to stealing vehicles, so you will see the same faces of young people hanging around these shops. Once the word is out that a location is buying stolen vehicles, our young thieves will attempt to please their buyers by following through with their needs.

  Junk yards make ideal locations for chop shops because they are usually out of public sight, making it difficult to observe everyday operations. These yards often get their vehicles from owners who are dissatisfied with their present vehicle because of expensive car payments, mechanical problems, high mileage, or they just don't want the vehicle anymore. The owner of the vehicle pays a small fee and his vehicle is dismantled by the junk yard. All parts that have the vehicle identification number (often referred to as the VIN) will be destroyed by crushing. The owner will then report the vehicle stolen and collect his insurance.

  Chop shops are also used to make stolen vehicles legal. Skilled personnel can alter the vehicle identification numbers. This craftsman can earn as much as $3,500 per vehicle. Vehicle identification number plates are carefully removed from vehicles totalled in accidents and then installed onto the stolen vehicles. The stolen vehicle can then be regis-

  tered. Chop shops also use counterfeit credentials to obtain valid titles.

  Chop shops also make a profit from odometer rollback. An odometer rollback is performed to reduce high mileage on a vehicle that is fairly new to increase its market value or comply with a lease agreement. The National Highway Traffic Safety Association reported that odometer rollback annual loss is between $3 and $4 billion. One way to roll back the odometer is to falsify the title prior to resale. Another method is to first detail the vehicle to improve the way it looks: a good wash and waxing, new tires, floor carpeting, brake and gas pedals. A person known in the trade as a clocker physically turns back the odometer, which only takes a few minutes using screwdrivers and lock picks. These vehicles can then be sold at auction houses or to used car dealers for an increased profit.

  Many chop shops are located in small garages in a residential community. These garages will be detached from the main house and out of view of the street. Inside these garages will be the tools necessary to completely strip the vehicles using a minimal amount of time. There will be an engine hoist, assorted jacks, air compressor, power and hand tools. To avoid detection, one vehicle will be disassembled at a time. The only problem with operations like this is the disposal of unsellable portions. The metal portions can be torched, that is cut up using a welding torch, or cut using various hand and motorized metal saws. These parts can be transported to a salvage yard and sold as scrap.

  The other nonsellable pieces, cloths and other material that are worthless, can be disposed of as trash. The only problem with this is that apprehension is likely if an endless supply of nonuseable automobile parts is found in the trash. Some of our backyard chop shops will make midnight raids to unauthorized dumping locations to dispose of their unmarketable goods.

  Because chop shops want to avoid detection, they will transport their items for sale in unmarked pickups, light hauling vans or trucks. This is a red flag to the police be-

  Vehicle Identification Numbers (VIN)

  For those of you who don't quite understand the importance of VINs, we will take a moment to explain it. Go out to your vehicle and look into your car through the windshield to the top of your dashboard on the driver's side. Sometimes it will be on the windshield post on the driver's side. The VIN is on a small rectangular plate attached to the car with two rivets, one on each side. These rivets are unique in themselves because their heads, the part which is visible to you, have a shape for each make of vehicle. We are told that these rivets are a controlled item and cannot be purchased readily. The VIN itself is seventeen characters, both letters and numbers. This series of characters specifies the vehicle's make, model, type, and where and when it was manufactured. The VIN is also stamped on the engine and transmission and may sometimes be found on a sticker on the driver's side door. Each manufacturer also places the VIN in a hidden location somewhere on the frame, as a last resort to identify the vehicle if the engine or transmission is missing or has been replaced. The manufacturer changes the location of the "hidden VIN" each year. Only the manufacturer, insurance companies and law enforcement agencies know the location of the hidden VIN.

  When a police officer is comparing the VINs on the vehicle's registration and the VIN plate behind the windshield, he may also check the sticker on the door. If this sticker is missing, this is a good indicator to the police officer that something is wrong.

  cause legitimate businesses advertise on the side of their vehicles.

  Buildings used for chop shops can be legitimate automobile repair or collision repair centers. To avoid detection, off hour late nights and weekends are used to cut up illegally obtained vehicles. These legitimate establishments will increase their business by installing stolen vehicle parts onto

  accident-damaged vehicles at a cheaper rate. One good indicator that a legitimate dealer is using stolen vehicle parts is absorbing a large insurance deductible in the repair cost of the damaged vehicle.

  Vehicles Stolen for Export

  Stolen vehicles for export into Central and South America, the Caribbean and Mexico are in high demand. Mexico is mainly used as a location for chop shops because of a treaty which states that stolen vehicles must be returned to the United States. Mexico is the only country that has this treaty stipulation. Because of the number of mountainous regions and poor road conditions in Central America, South America and the Caribbean, the preferred vehicles are 4 x 4-wheel drives. Officials will make no attempt in these countries to put a halt to the import of these vehicles. A good portion of these stolen vehicles are used by government agencies and upper-class residents. Because of this, the cars must be undamaged and are stolen with the keys.

  Once the vehicles are stolen, they are shipped out of the country through freight haulers — commercial shipping lines that use steel shipping containers, which can contain up to two vehicles. To get through United States Customs Service, they use forged documents with altered VINs or inaccurate shipping contents (the vehicles are usually listed as household goods).

  In the Caribbean, a law enforcement study reported that one out of every five vehicles shipped from the United States showed signs of being stolen. For vehicles valued over $16,000, the percentage changed to four of every five vehicles stolen from the United States. The amazing thing to remember is that there is a waiting list of buyers who will pay as much as twice the original purchase price of the vehicle knowing it was stolen from the United States. Luxury and 4 x 4-wheel drive vehicles are very hard to come by in developing countries. Wealthy customers are willing to pay the extra price for these vehicles, creating a high demand for stolen cars.

  An important consideration in exporting stolen vehicles is the distance the vehicle must be moved to reach a port. Car thieves do not want to get caught and this can easily occur when transporting the stolen vehicle to the port. One method to avoid apprehension is to haul the stolen vehicles in a car carrier. Car carriers, unless they violate a traffic law, are unlikely to be stopped. One problem with this method of transportation is that legitimate car carriers transport one make of vehicle. When transporting stolen vehicles, multiple makes are on board — a red flag for law enforcement.

  The United States Customs Service, in an attempt to slow the shipping of stolen vehicles out of the country, applies for and receives regulations that place a time limit on vehicles for export. The vehicles must be registered several days before shipping—enough time that the proper inspection and credential-checking can be performed. Unfortunately, resourceful thieves can circumvent this. They purchase a vehicle from an automobile dealership and ship it to a country. Then they remove the VIN plates, the paperwork, and the plates, send them back to the United States and place them
on a similar, but stolen, vehicle. This stolen vehicle is then shipped following regular procedures from the United States to the country where it was requested.

  Gray Market Vehicles

  A gray market vehicle is basically any vehicle manufactured in a foreign country for use in that country and not for export into the United States. These vehicles are not made according to the United States's emissions and safety standards and often have defects that could result in fires and poor performance; some even lack rearview and passenger-side mirrors. These vehicles are usually represented as vehicles that have been converted to United States standards, but nothing has been changed.

  Gray market vehicles are ideal candidates for insurance fraud because they are cheaper to obtain, thus making market value higher than purchase price. The owner can purchase the gray market vehicle, sell it to a chop shop, report it stolen, and recoup a sizable profit from the insurance company.

  Heavy Industrial and Construction Equipment

  Insurance companies estimate that heavy industrial construction and farm vehicle thefts create a billion dollar a year loss. These types of vehicles contain few if any anti-theft devices and some can even be started without a key. They are easy targets because they are often found in vacant lots and in rural areas. The method our thieves use is very simple: They climb aboard, start the engine, and drive away. Sometimes the vehicles are placed onto a semi-tractor trailer. This operation requires at least two people.

  Once the vehicle is obtained, it will be sold using phony documentation, either by direct sale or auction. There is little or no paperwork involved with these vehicles because they are not registered since they are mostly driven off-road. The only identification on some of these vehicles is an engine number, so fraudulent paperwork is easy to obtain.

  Hijacking

  Remember that the hijacking of today is an interesting renewal of the hijacking that occurred in the ancient history of this country. Stagecoaches, trucks, caravans, merchant ships and other types of transportation have, in their time, been taken by what was known in the past as "highlanding." But, the modern hijacker has exceeded his predecessors in both the amount of earnings and in the finesse and skill required.

  In a single hijacking, several hundred thousand dollars worth of easily marketable merchandise is available. This is because the capacity of the modern tractor trailer truck is enormous. The items taken during a hijacking are usually consumer-oriented goods, which can easily be sold. Items such as liquor, television sets, refrigerators, washing machines, and cigarettes are commonly stolen.

  Truck hijacking seems to be mainly an organized crime caper. We all know that teamsters have a certain amount of organized crime behind them. Because of this, schedules, routes, drivers and cargo can all be manipulated for the benefit of the thieves.

  Hijacking while the vehicle is in motion on its route takes a series of operations that require skillful planning, perfect timing and expert execution. At the peak level of organization, a hijacking gang will work in the following manner: The fingerman (usually an employee of a trucking firm) informs the gang of an expected shipment, including the nature of the merchandise, the schedule, the make of the truck, and the license plate number. The spotter points out the truck to the men actually doing the hijacking and follows it to the drop (area where merchandise is unloaded). The gunmen stop the truck at a prearranged location and either remove the driver to their car or bind, gag and place him in the hijacked truck.

  A hijacker without a reliable fence is at a very serious disadvantage. The fence plays a major role in the success of these types of crimes. Many hijackings are steal-to-order jobs. Once a truck is targeted and selected because of the cargo it carries, organized crime will investigate the vulnerability of the trucking company for a theft. Many times the hijacked loads are sold to persons even before they are stolen. You may recall during the gasoline shortage of the 1970s a rash of gasoline truck hijackings.

  The Shipping Process

  Let's talk about the shipping process, which hijackers are very familiar with. About 50 percent of all hijackings are inside jobs. Let's follow a carton of clothing being shipped from Harry's Hotpants in New York City to Mimi's Minis in Miami, Florida:

  The Packager. At Harry's Hotpants (the shipper), the goods are carefully packed in cardboard containers, which are then steel strapped. The name and address of Mimi's is placed on labels stuck to the side of each carton. The order numbers are also placed on the side of each box.

  The Traffic Manager. He prepares what is known as a bill of lading in triplicate describing the shipment and giving it an order number.

  The Shipping Clerk. The shipping clerk of Harry's calls the trucking company to request that they make a pick-up.

  The Dispatcher. After receiving the request from the shipping clerk, the dispatcher of the trucking company orders one of the drivers working in the neighborhood to make the pick-up.

  The City Pick-Up Driver. The driver makes the pick-up after first checking the packaging and the labeling of each carton. He proceeds to the motor freight terminal. Best practices require him to close and lock a steel folding gate after each pick-up.

  The Freight Terminal Action. At the motorfreight terminal, the shipment is unloaded onto a platform by the truck driver who picked it up. A manifest is written and the traffic and billing department of the transportation company receives the bill of lading. A waybill number is assigned to the shipment.

  Terminal Loading. The shipment is then placed on a trailer, the doors are closed, and the transportation company lock is affixed together with the numbered, impressed seal. The seal number is recorded by the dispatcher. The seal number is also placed on the manifest and on the road driver's dispatch order. This is a separate seal number used just to protect the integrity of the shipment.

  Alarm System. The trailer is then assigned to a tractor. Ideally, it is equipped with an automatic alarm that will sound a warning if it is disturbed at any time while in transit or unattended. The alarm is set by the dispatcher at the terminal with a master key. Some of the alarms, which you may have seen on the sides of trucks, are manufactured by Babaco. This alarm can now be turned off only by the dispatcher in Miami, Florida, with his master key.

  The Road Drivers. The driver receives his instructions from the dispatcher: he is to be relieved by two other drivers in relay along the Eastern Seaboard route. In compliance with Inter-State Commerce Commission regulations, he will maintain a driver's log showing the times of driving and the times of rest. As an additional check, some tractors are equipped with an instrument that records automatically the periods of driving and stopping as well as the speed of the vehicle.

  Arrival. Upon reaching the Miami terminal, the driver checks in with the Miami dispatcher and gives him a report of the trip, a copy of the logs, and a pouch containing bills and instructions concerning the load. The shipment is then unloaded and checked against the manifest. It is imperative, at this point, that the seal has not been disturbed. If that seal is broken, of course, it will mean that someone has had access to the shipment while it was in transit from Harry's Hotpants to Mimi's Minis.

  The City Delivery. At the Miami terminal, the cartons are checked and loaded into a city or local delivery truck, which goes to Mimi's clothing warehouse. The doors are unlocked and the cartons are placed on the platform where they are checked by the receiving clerk who signs the waybill. He may mark the cartons with the date and time of delivery and a symbol to indicate if they were in acceptable condition.

  Let's say our bad guy reviews the shipping orders and knows that a truckload of brand new, top-of-the-line, large-screen TVs is being transported from San Francisco to New York City. Using their influence, the bad guys install a driver loyal to the cause. This driver will be given a route to follow, but prior to arriving in New York City, a slight detour will occur. In some out of the way place, the driver, along with his accomplices, will either unload the cargo into a waiting tractor trailer, or give up t
he tractor trailer itself. To make it appear realistic, the driver may even be tied up or assaulted. The driver will then continue on his merry way avoiding any law enforcement inspection stops or weight stations. Once the driver feels his accomplices are safe and secure, he will contact the local law enforcement agency and report the crime.

  The same scheme could be used on shorter runs. We have both worked on numerous cases where, of all things, seafood trucks have been hijacked. New Jersey has a substantial number of seafood restaurants, co-ops and fish markets. Seafood is very expensive and practically nontrace-able. We all know a fish is a fish and has no vehicle registration numbers, so tracing these edible delights is impossible. Just about all the seafood-truck hijackings we have worked on, even though it wasn't always proven, seemed to have had an insider. When we talk about seafood trucks, we're talking about medium-sized, refrigerated panel trucks.

  Less than semi-size trucks are usually hijacked at truck stops. A gunman will direct the driver to a semi-secluded area where the transfer is made. Waiting in this area is a truck similar in size to the hijacked one. A number of accomplices will be standing by and, in just about all the ones we have worked on, these accomplices will be wearing some type of ski mask or other face covering to prevent recognition. All will be wearing gloves, not only to not leave any fingerprints, but to aid in carrying the heavy crates. Once the transfer is made, the driver of the hijacked vehicle will be made to walk back to the road or be tied up and left to be discovered. The only problem with tying the driver is the criminals must make certain that the victim will be discovered quickly before the victim is injured or dies from exposure to the elements.

  Trucks containing merchandise are sometimes parked on city streets or in fenced-in parking lots. These trucks usually have just a padlock, which can easily be cut with a pair of bolt cutters. Local street gangs find this easy prey; they either climb over or cut through the fence, go to either the rear or side door and cut the padlock to gain entry. Once inside, a quick survey will be conducted, and items are removed. They seldom take all the cargo, usually just what they can carry.