💥$600M converter cartel smashed — Khanna’s lavish empire ends in prison time

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

A man from New Jersey has confessed in federal court to organizing a massive, multi-state catalytic converter theft operation. Over the course of two years, Navin Khanna, 41, of Holmdel, led a scheme that involved stealing car parts rich in precious metals and reselling them for a staggering $600 million.

Khanna, the operator of a company called D.G. Auto Parts, worked with dozens of others to move stolen catalytic converters from places like Oklahoma and Texas to his base in New Jersey, where the parts were sold to a metal refinery for profit. His guilty plea now places him at the center of one of the largest converter theft conspiracies ever uncovered in the U.S.

A Nationwide Theft Scheme Uncovered

The investigation began in Tulsa, Oklahoma, where police noticed a dramatic spike in catalytic converter thefts in 2020. The thefts left many vehicle owners without working cars and caused thousands in repair costs. Local police uncovered a much larger network and partnered with federal agencies to dig deeper.

Khanna’s business, which appeared to be a legitimate auto parts dealer, was actually a front for trafficking stolen converters across state lines. These parts contain valuable elements like palladium, rhodium, and platinum, which are extracted and sold at high prices.

Between May 2020 and October 2022, Khanna and his team collected huge quantities of stolen parts and moved them to New Jersey. Authorities say Khanna coordinated the purchases and shipments, directly receiving millions from resales.

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In total, more than 20 people were charged in the case. Thirteen co-defendants in the Northern District of Oklahoma have already admitted guilt and await sentencing.

Luxury Lifestyle Built on Stolen Parts

Investigators revealed that Khanna used the profits from his illegal activities to live a life of extreme wealth. When law enforcement executed search warrants at his properties, they seized:

  • $3.9 million in cash
  • 11 luxury cars, including Ferraris, a McLaren, a Lamborghini, and several Mercedes-Benz AMGs
  • High-end watches and gold bars
  • Real estate properties
  • Over 200 pallets filled with catalytic converters

His partners in the scheme also agreed to forfeit $3.2 million, along with vehicles, land in Oklahoma, and other stolen property.

The large-scale investigation involved several law enforcement groups including Homeland Security Investigations (HSI), IRS-Criminal Investigations, Tulsa Police Department, and multiple state and tribal agencies. Search warrants were carried out in California, New York, Texas, Oklahoma, and New Jersey.

Khanna was indicted by federal grand juries in both Oklahoma and California. While his guilty plea was entered in Oklahoma, his sentencing will be transferred to the Eastern District of California, where further prosecution is underway.

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Federal Charges and Maximum Prison Time

Khanna pleaded guilty to one count of conspiracy involving stolen goods across state lines, and five counts of money laundering. These charges carry a potential sentence of up to 17.5 years in prison, with the final decision to be made by a judge after reviewing federal guidelines and case evidence.

Matthew R. Galeotti, Acting Assistant Attorney General for the Justice Department’s Criminal Division, said, “The defendant made $600 million and financed his ostentatious lifestyle by buying and selling stolen goods. Sophisticated criminal schemes may afford you luxury cars and homes in the short term, but they will cost you a federal felony conviction in the long term.”

U.S. Attorney Clint Johnson, representing the Northern District of Oklahoma, emphasized how the thefts impacted regular citizens, saying the operation “rendered the vehicles unusable.”

The prosecution team includes Trial Attorney César S. Rivera-Giraud from the Department of Justice’s Violent Crime and Racketeering Section, as well as Assistant U.S. Attorneys Reagan Reininger and David Nasar in Oklahoma. Veronica M.A. Alegría, Assistant U.S. Attorney for the Eastern District of California, is also prosecuting the California-based charges.

This case is part of Operation Take Back America, a federal initiative aimed at dismantling transnational criminal organizations and protecting communities from violent and organized crimes.

To read the original order please visit DOJ website

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