For Immediate Release
June 16, 1999

Washington D.C.
FBI National Press Office

FBI Director Louis J. Freeh announced today that over 100 persons are being charged in 18 cities from coast to coast in a large-scale law enforcement operation targeting cargo theft that includes theft of computers and other high technology equipment. Sixteen other persons were charged with stealing motor vehicles as part of the FBI's continuing "Operation Sudden Stop" vehicle cargo theft initiative.

Director Freeh said, "Cargo theft is a major crime problem throughout the nation, with some estimates of losses ranging up to $10 billion a year."

Freeh said, "We expect this joint operation of federal, state, and local law enforcement agencies to eventually make significant inroads on cargo theft now carried out by a wide range of organized groups in all regions of the country."

Freeh said 104 persons are being charged or arrested in the FBI's Albany, Birmingham, Buffalo, Charlotte, Chicago, Columbia, Dallas, Detroit, Jackson, Little Rock, Los Angeles, Memphis, Miami, Newark, New York City, San Francisco, Tampa, and Washington, D.C., field offices relating to cargo theft.

The cargo theft charges from the second phase of a larger nationwide anti-crime program, Operation Sudden Stop--which targets motor vehicle cargo theft. The first phase of Sudden Stop occurred April 27, when more than 200 persons in 22 cities were charged in a nationwide crackdown on criminal organizations stealing motor vehicles. Sixteen persons in Houston, New Orleans, New York and Mobile were also charged with motor vehicle thefts stemming from the initial phase of Operation Sudden Stop.

Operation Sudden Stop is being carried out by large numbers of task forces which are composed of federal, state, and local law enforcement agencies and a large number of United States Attorneys and local prosecutors, according to Assistant FBI Director Thomas J. Pickard of the Criminal Investigative Division.

Pickard said, "Vehicle and cargo thefts are becoming crimes of choice for organized criminal groups. Penalties are often relatively light and the potential for illegal profits is huge.

"Cargo theft is increasingly being committed by groups that target valuable commodities or steal on demand for fences and illegitimate wholesalers who sell the goods themselves or place the stolen property into domestic and foreign black markets where it is introduced into legitimate retail markets," Pickard said. He said, "A million dollars or more worth of memory chips can easily fit in the back of a car."

One insurance group has estimated that consumers may be paying an extra $100 on the average price of a personal computer from a legitimate dealer because of the cost of high-tech thefts.

Motor vehicle theft continues to be a major crime problem. The April 27 arrests on motor theft charges were carried out in Cleveland, Columbia, Detroit, Houston, Indianapolis, Las Vegas, Little Rock, Los Angeles, Memphis, Miami, Mobile, Oklahoma City, Omaha, Pittsburgh, Salt Lake City, San Antonio, San Diego, San Juan, Springfield, St. Louis, and Tampa. Today's arrests are a continuation of that initial effort.

Within the Criminal Investigative Division, Operation Sudden Stop is coordinated by the Violent Crimes and Major Offenders Section, Interstate Theft/Government Reservation Crimes Unit.