BRONX BASED AUTO SOUND AND SECURITY BUSINESS AND FOURTEEN INDIVIDUALS INDICTED ON CHARGES OF ENTERPRISE CORRUPTION AND OTHER OFFENSES INCLUDING AUTO THEFT AND INSURANCE FRAUD

Bronx District Attorney Robert T. Johnson announced today that fourteen people and an automobile sound and security business have been indicted on charges ranging from enterprise corruption to auto theft and insurance fraud.

Eleven of the defendants allegedly belong to a close knit ring of thieves specializing in auto theft and related crimes, and have been charged with enterprise corruption; Four other defendants are accused of participating in some of the criminal activities and profiting from their participation, but have not been charged with being part of the criminal enterprise which involved crimes that occurred in the Bronx, Manhattan, Brooklyn, Queens and Rockland County.

Mr. Johnson said that the 161 count indictment was the result of a three year long joint investigation by the Bronx District Attorney’s Office, NYPD’s Organized Crime Investigation Division, and the New York City Business Integrity Commission, formerly the Trade Waste Commission.

The defendants, according to the indictment, engaged in the systematic “theft, possession and dismantling of stolen vehicles” as well as the “distribution of the stolen vehicles and their dismantled component parts”. An automobile sound and security shop at 2655 Webster Avenue, Auto Sports, Inc., was the nerve center of the alleged criminal enterprise. (The business is still operating at the same location under the same name but with new owners who have no connection to allegations resulting from this investigation.) Members of the “ring” allegedly conducted business from the shop and various abandoned lots that were converted into “chop shops” to dismantle vehicles. These locations were used to take orders for vehicle parts, dismantle vehicles, alter Vehicle Identification Numbers (VIN) on parts, rebuild motor vehicles using stolen parts, and also arrange for the disappearance of vehicles in connection with the filing of fraudulent insurance claims. The ring, during the course of the investigation, allegedly engaged in criminal activities involving mostly “high end” and luxury motor vehicles, a garbage truck, and a tractor trailer, with a total estimated value of more than three quarters of a million dollars.

In addition to the charge of Enterprise Corruption, the indictment also contains numerous counts of Criminal Possession of Stolen Property in the 2nd, 3rd, and 4th degrees, Grand Larceny in the 3rd, 4th and 5th degrees, and Criminal Mischief in the 2nd and 3rd degrees; multiple counts of Illegal Possession of a VIN (vehicle identification number), Sale of a Motor Vehicle or part with a changed VIN, and Forgery of a VIN; several counts of Insurance Fraud in the 3rd and 4th degrees, Falsifying Business Records in the 1st degree, and Unlawful Transfer or Disposal of Junk and Salvage Vehicles; and one count each of Arson in the 3rd degree, Criminal Possession of a Weapon in the 4th degree, Auto Stripping in the 1st degree, Auto Stripping in the 2nd degree, Criminal Possession of Forgery Devices, and Unlawful Possession of Radio Devices.

The most serious of the charges in the indictment, Enterprise Corruption, is a Class B felony offense punishable by a maximum sentence of up to 25 years imprisonment. The maximum sentences upon conviction on the remaining charges range from seven to fifteen years imprisonment.

The existence of this alleged “auto theft enterprise” came to light after investigators set up a sting operation which involved the creation of an undercover business. The detectives who ran the business were approached and offered an opportunity to purchase stolen trucks.

During the course of the investigation, detectives and prosecutors were assisted by court ordered wiretaps, surveillance cameras, hidden microphones, and a Global Positioning System satellite tracking device that was planted in a van that alleged members of the ring regularly used for transportation to and from car theft locations, chop shops and delivery locations for stolen car parts.

Investigators have identified the alleged ring leaders of the so-called Auto Sports Crew as Bronx residents Steven Lugo, 34, and Victor Estrella, 39. They are accused of overseeing the day to day activities of the criminal enterprise including the theft, storage, and illegal dismantling of stolen cars, and the sale and distribution of the component parts from the stolen cars. Among the alleged members of the ring were Stony Point, New York residents Adalberto Marty Jr., 35, and his wife, Carmen Marty, 38, the owners of Auto Sports , Inc. The indictment alleges that the corporate entity also was a member of the criminal enterprise in that its premises were used for illegal financial gain with the knowledge of and in concert with the accused couple.

Following is a list of all of the defendants:

Among the defendants who allegedly worked with the ring but were not part of the larger criminal enterprise were Justino Lopez, a New York City bus driver, Michael Nunez, a New York City licensed tow truck operator, Michael Rivera, and Joshua Kaufman. Lopez and Rivera, Auto Sports customers, have been charged with insurance fraud. Lopez allegedly arranged to have his late model Chevrolet Avalanche “torched” in order to collect on a $25,000 insurance claim filed with GEICO. The false nature of the claim was discovered before the company issued a check. It is alleged that Kaufman arranged to have his leased Acura Integra “disappear” in order to collect on a false insurance claim. Evidence of the fraudulent claim on which Nationwide Insurance paid $14,000, was uncovered during the course of the investigation. Rivera allegedly arranged, with members of the criminal enterprise, to have minivans stolen in order to obtain replacement parts for a Mercury Villager that he had damaged in an accident. Nunez, the tow truck operator, has been charged with assisting members of the ring in delivering a stolen tractor trailer to the Bronx. The stolen vehicle, worth more than $50,000, was delivered to undercover detectives.

District Attorney Johnson thanked the Organized Crime Investigation Division, New York City Police Department, Captain Alex Schapowal, Sgt. Michael Gerard, Det. Ruben DeLaConcha, and Det. Ramon Polanco (formerly of OCID currently assigned to the Joint Terrorism Task Force); the New York City Business Integrity Commission, Deputy Commissioner Thomas McCormack and commission staff members; Senior Bronx District Attorney Detective Investigator Larry Hinrichs; Assistant District Attorney Thomas Leahy, Chief, Rackets Bureau, and Senior Investigative Assistant District Attorney Todd Sherman. ADA Sherman is prosecuting the case.