Fbi report for_cooper_theft
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Copper thefts are threatening critical US infrastructure by targeting electrical systems, communication towers, and other sites for lucrative profits. Organized criminal groups are stealing large amounts of copper to sell illegally. As global copper demand rises, especially in China and India, copper thieves are exploiting higher prices by stealing and selling to recyclers. This threatens public safety and national security by disrupting electricity, communications, transportation, and emergency services.
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![Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure
Contact Us Copper Thefts Threaten US Critical Infrastructure
Your Local FBI Office
Overseas Offices Federal Bureau of Investigation
Submit a Crime Tip Intelligence Assessment (Unclassified)
Report Internet Crime Prepared by
More Contacts
FBI Criminal Intelligence Section
September 15, 2008
Learn About Us
Scope Note
Quick Facts
Electric utility substation
What We Investigate The assessment highlights copper theft and its impact on US
Natl. Security Branch critical infrastructure. Copper thefts are occurring throughout the United States and are
Information Technology perpetrated by individuals and organized groups motivated by quick profits and a variety of
Fingerprints & Training vulnerable targets. Information for the assessment was developed through May 2008 from the
Laboratory Services following sources:
Reports & Publications FBI
History Open sources
More About Us
Get Our News Source and Confidence Statement
Press Room
Reporting relative to the impact of copper thefts on US critical infrastructure was derived
E-mail Updates from the FBI and open sources . The FBI has high confidence that the FBI source
News Feeds reporting used to prepare the assessment is reliable. The FBI also has high confidence in
the reliability of information derived from open-source reporting.
Be Crime Smart
Wanted by the FBI
Key Judgments
More Protections
Use Our Copper thieves are threatening US critical infrastructure by
Transformer
Resources targeting electrical sub-stations, cellular towers, telephone land
lines, railroads, water wells, construction sites, and vacant
For Law Enforcement
homes for lucrative profits. The theft of copper from these
For Communities targets disrupts the flow of electricity, telecommunications,
For Researchers transportation, water supply, heating, and security and
More Services emergency services and presents a risk to both public safety
Visit Our Kids' and national security. 1
Page Copper thieves are typically individuals or organized groups who
operate independently or in loose association with each other
Apply for a Job and commit thefts in conjunction with fencing activities and the
sale of contraband. Organized groups of drug addicts, gang
members, and metal thieves are conducting large scale thefts
from electric utilities, warehouses, foreclosed or vacant
properties, and oil well sites for tens of thousands of dollars in
illicit proceeds per month. 2 Transformers contain approximately
The demand for copper from developing nations such as China 50 lbs. of copper with the potential
and India is creating a robust international copper trade. Copper to stolen,$200 for copper thieves and
if
yield
result in thousands of
thieves are exploiting this demand and the resulting price surge dollars in damages, replacement
by stealing and selling the metal for high profits to recyclers costs, and environmental clean-up.
across the United States. As the global supply of copper
continues to tighten, the market for illicit copper will likely increase. 3
Copper Thefts Threaten US Critical Infrastructure
Copper thieves are threatening US critical infrastructure by targeting electrical substations,
cellular towers, telephone land lines, railroads, water wells, construction sites, and vacant
http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]](https://image.slidesharecdn.com/fbireportforcoopertheft-110610171327-phpapp01/85/Fbi-report-for_cooper_theft-1-320.jpg)
![Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure
homes for lucrative profits. Copper thefts from these targets have increased since 2006; and
they are currently disrupting the flow of electricity, telecommunications, transportation, water
supply, heating, and security and emergency services, and present a risk to both public safety
and national security.
According to open-source reporting, on 4 April 2008, five tornado warning sirens in the
Jackson, Mississippi, area did not warn residents of an approaching tornado because
copper thieves had stripped the sirens of copper wiring, thus rendering them inoperable.
According to open-source reporting, on 20 March 2008, nearly 4,000 residents in Polk
County, Florida, were left without power after copper wire was stripped from an active
transformer at a Tampa Electric Company (TECO) power facility. Monetary losses to TECO
were approximately $500,000.
According to agricultural industry reporting, as of March 2007, farmers in Pinal County,
Arizona , were experiencing a copper theft epidemic as perpetrators stripped copper from
their water irrigation wells and pumps resulting in the loss of crops and high replacement
costs. Pinal Countys infrastructure loss due to copper theft was $10 million.
Criminal Groups Involved in Copper Thefts
Copper thieves are typically individuals or organized groups who
operate independently or in loose association with each other and Sawzall
commit thefts in conjunction with fencing activities and the sale of
contraband. Organized groups of drug addicts, gang members, and
metal thieves are conducting large scale thefts from electric utilities,
warehouses, foreclosed and vacant properties, and oil well sites for
tens of thousands of dollars in illicit proceeds per month.
Sawzalls, bolt cutters, wire cutters,
According to open sources, as recently as April 2008, highly and various hand tools are used in
organized theft rings specializing in copper theft from houses the commission of copper theft.
and warehouses were operating in Minneapolis, Minnesota.
These rings or gangs hit several houses per day, yielding more than $20,000 in profits per
month. The targets were most often foreclosed homes.4
Open-source reporting from March 2008 indicates that an organized copper theft ring used
the Cuyahoga County Sheriffs foreclosure lists to pinpoint targets in Cleveland, Ohio.
Perpetrators had 200 pounds of stolen copper in their van, road maps, and tools. Three
additional perpetrators were found to be using the US Department of Housing and Urban
Developments list of mortgage and bank foreclosures to target residences in Cleveland,
South Euclid, Cleveland Heights, and other cities in Ohio. 5
Global Demand Increasing
China , India, and other developing nations are driving the demand for raw materials such as
copper and creating a robust international trade. Copper thieves are receiving cash from
recyclers who often fill orders for commercial scrap dealers. Recycled copper flows from these
dealers to smelters, mills, foundries, ingot makers, powder plants, and other industries to be
re-used in the United States or for supplying the international raw materials demand. As the
global supply of copper continues to tighten, the market for illicit copper will likely increase.
Open-source reporting from February 2007
Copper Wire
indicates that the global copper supply tightened
due to a landslide at the Freeport-McMoran Copper
and Cold mine in Grasberg, Indonesia in October
2003 and a workers strike at the El Abra copper
mine in Clama, Chile in November 2004. These
events contributed to copper production shortfalls
and led to an increase in recycling, which in turn
created a market for copper. 6
Open-source reporting from October 2006 indicated
that the demand for copper from China increased
substantially due to the construction of facilities for
the 2008 Olympics. 7
Open-source reporting indicated that from January Copper wire containing insulation is often transported
2001 to March 2008, the price of copper increased to burn sites where the insulation is burned off in a
steel drum leaving behind just the copper wire.
more than 500 percent.8 This has prompted
http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]](https://image.slidesharecdn.com/fbireportforcoopertheft-110610171327-phpapp01/85/Fbi-report-for_cooper_theft-2-320.jpg)
![Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure
unscrupulous and sometimes unwitting independent and commercial scrap metal dealers to
pay record prices for copper, regardless of its origin, making the material a more attractive
target for theft.
Outlook
The global demand for copper, combined with the economic and home foreclosure crisis, is
creating numerous opportunities for copper-theft perpetrators to exploit copper-rich targets.
Organized copper theft rings may increasingly target vacant or foreclosed homes as they are a
lucrative source of unattended copper inventory. Current economic conditions, such as the
rising cost of gasoline, food, and consumer goods, the declining housing market, the ease
through which copper is exchanged for cash, and the lack of a significant deterrent effect,
make it likely that copper thefts will remain a lucrative financial resource for criminals.
Industry officials have taken some countermeasures to address the copper theft problem.
These include the installment of physical and technological security measures, increased
collaboration among the various industry sectors, and the development of law enforcement
partnerships. 9 Many states are also taking countermeasures by enacting or enhancing
legislation regulating the scrap industryto include increased recordkeeping and penalties for
copper theft and noncompliant scrap dealers. However, there are limited resources available to
enforce these laws, and a very small percentage of perpetrators are arrested and convicted.
Additionally, as copper thefts are typically addressed as misdemeanors, those individuals
convicted pay relatively low fines and serve short prison terms.
This intelligence assessment was prepared by the Criminal Investigative Division of the FBI.
1 WAPT.com, Copper Thieves Silence Tornado Siren, 8 April 2008, available at
www.wapt.com.
2 The Orlando Sentinel, Theft Causes Power Outage, 21 March 2008, available at
www.orlandosentinel.com.
3 Murphree, Julie. Copper Theft in Arizona at Epidemic Levels, Arizona Farm Bureau:
Arizona Agriculture, March 2007, Vol. 60, No. 3, available at www.azfb.org.
4 Tevlin, Jon. The New Underground Currency, StarTribune.com, 12 April 2008, available at
www.msnbc.msn.com.
5 The Plain Dealer, Copper Theft Ring Worked From Foreclosure Lists, Cleveland Heights
Police Say, 28 March 2008, available at www.cleveland.com.
6 According to an extensive study sponsored by the Chief Security Officer web site
(www.csoonline.org) Scott Berinato, Copper Theft: The Metal Theft Epidemic,1 February
2007, http://www.csoonline.com/read/020107/fea_metal.html.
7 Xinhau News Agency. Bejing to Spend More on Infrastructure for Olympics,
CHINA.ORG.CN, 9, October, 2006, available at www.china.org.cn.
8 NYMEX Daily Spot Settlement Price, http://www.nymex.com (accessed on 9 March 2008).
9 US Attorney Anti-Terrorism Advisory Council Meetings with industry and law enforcement 25
April 2008 and 29 July 2008; LexisNexis; (U) Hassan, Anita. Jackson Lee Says She Will
Introduce Legislation That Enlists Help of FBI, The Houston Chronicle, 6 September 2008.
Headline Archives home
Accessibility | eRulemaking | Freedom of Information Act/Privacy | Legal Notices | Legal Policies and Disclaimers | Links
Privacy Policy | USA.gov | White House
FBI.gov is an official site of the U.S. Federal Government, U.S. Department of Justice.
http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]](https://image.slidesharecdn.com/fbireportforcoopertheft-110610171327-phpapp01/85/Fbi-report-for_cooper_theft-3-320.jpg)
Fbi report for_cooper_theft
- 1. Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure Contact Us Copper Thefts Threaten US Critical Infrastructure Your Local FBI Office Overseas Offices Federal Bureau of Investigation Submit a Crime Tip Intelligence Assessment (Unclassified) Report Internet Crime Prepared by More Contacts FBI Criminal Intelligence Section September 15, 2008 Learn About Us Scope Note Quick Facts Electric utility substation What We Investigate The assessment highlights copper theft and its impact on US Natl. Security Branch critical infrastructure. Copper thefts are occurring throughout the United States and are Information Technology perpetrated by individuals and organized groups motivated by quick profits and a variety of Fingerprints & Training vulnerable targets. Information for the assessment was developed through May 2008 from the Laboratory Services following sources: Reports & Publications FBI History Open sources More About Us Get Our News Source and Confidence Statement Press Room Reporting relative to the impact of copper thefts on US critical infrastructure was derived E-mail Updates from the FBI and open sources . The FBI has high confidence that the FBI source News Feeds reporting used to prepare the assessment is reliable. The FBI also has high confidence in the reliability of information derived from open-source reporting. Be Crime Smart Wanted by the FBI Key Judgments More Protections Use Our Copper thieves are threatening US critical infrastructure by Transformer Resources targeting electrical sub-stations, cellular towers, telephone land lines, railroads, water wells, construction sites, and vacant For Law Enforcement homes for lucrative profits. The theft of copper from these For Communities targets disrupts the flow of electricity, telecommunications, For Researchers transportation, water supply, heating, and security and More Services emergency services and presents a risk to both public safety Visit Our Kids' and national security. 1 Page Copper thieves are typically individuals or organized groups who operate independently or in loose association with each other Apply for a Job and commit thefts in conjunction with fencing activities and the sale of contraband. Organized groups of drug addicts, gang members, and metal thieves are conducting large scale thefts from electric utilities, warehouses, foreclosed or vacant properties, and oil well sites for tens of thousands of dollars in illicit proceeds per month. 2 Transformers contain approximately The demand for copper from developing nations such as China 50 lbs. of copper with the potential and India is creating a robust international copper trade. Copper to stolen,$200 for copper thieves and if yield result in thousands of thieves are exploiting this demand and the resulting price surge dollars in damages, replacement by stealing and selling the metal for high profits to recyclers costs, and environmental clean-up. across the United States. As the global supply of copper continues to tighten, the market for illicit copper will likely increase. 3 Copper Thefts Threaten US Critical Infrastructure Copper thieves are threatening US critical infrastructure by targeting electrical substations, cellular towers, telephone land lines, railroads, water wells, construction sites, and vacant http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]
- 2. Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure homes for lucrative profits. Copper thefts from these targets have increased since 2006; and they are currently disrupting the flow of electricity, telecommunications, transportation, water supply, heating, and security and emergency services, and present a risk to both public safety and national security. According to open-source reporting, on 4 April 2008, five tornado warning sirens in the Jackson, Mississippi, area did not warn residents of an approaching tornado because copper thieves had stripped the sirens of copper wiring, thus rendering them inoperable. According to open-source reporting, on 20 March 2008, nearly 4,000 residents in Polk County, Florida, were left without power after copper wire was stripped from an active transformer at a Tampa Electric Company (TECO) power facility. Monetary losses to TECO were approximately $500,000. According to agricultural industry reporting, as of March 2007, farmers in Pinal County, Arizona , were experiencing a copper theft epidemic as perpetrators stripped copper from their water irrigation wells and pumps resulting in the loss of crops and high replacement costs. Pinal Countys infrastructure loss due to copper theft was $10 million. Criminal Groups Involved in Copper Thefts Copper thieves are typically individuals or organized groups who operate independently or in loose association with each other and Sawzall commit thefts in conjunction with fencing activities and the sale of contraband. Organized groups of drug addicts, gang members, and metal thieves are conducting large scale thefts from electric utilities, warehouses, foreclosed and vacant properties, and oil well sites for tens of thousands of dollars in illicit proceeds per month. Sawzalls, bolt cutters, wire cutters, According to open sources, as recently as April 2008, highly and various hand tools are used in organized theft rings specializing in copper theft from houses the commission of copper theft. and warehouses were operating in Minneapolis, Minnesota. These rings or gangs hit several houses per day, yielding more than $20,000 in profits per month. The targets were most often foreclosed homes.4 Open-source reporting from March 2008 indicates that an organized copper theft ring used the Cuyahoga County Sheriffs foreclosure lists to pinpoint targets in Cleveland, Ohio. Perpetrators had 200 pounds of stolen copper in their van, road maps, and tools. Three additional perpetrators were found to be using the US Department of Housing and Urban Developments list of mortgage and bank foreclosures to target residences in Cleveland, South Euclid, Cleveland Heights, and other cities in Ohio. 5 Global Demand Increasing China , India, and other developing nations are driving the demand for raw materials such as copper and creating a robust international trade. Copper thieves are receiving cash from recyclers who often fill orders for commercial scrap dealers. Recycled copper flows from these dealers to smelters, mills, foundries, ingot makers, powder plants, and other industries to be re-used in the United States or for supplying the international raw materials demand. As the global supply of copper continues to tighten, the market for illicit copper will likely increase. Open-source reporting from February 2007 Copper Wire indicates that the global copper supply tightened due to a landslide at the Freeport-McMoran Copper and Cold mine in Grasberg, Indonesia in October 2003 and a workers strike at the El Abra copper mine in Clama, Chile in November 2004. These events contributed to copper production shortfalls and led to an increase in recycling, which in turn created a market for copper. 6 Open-source reporting from October 2006 indicated that the demand for copper from China increased substantially due to the construction of facilities for the 2008 Olympics. 7 Open-source reporting indicated that from January Copper wire containing insulation is often transported 2001 to March 2008, the price of copper increased to burn sites where the insulation is burned off in a steel drum leaving behind just the copper wire. more than 500 percent.8 This has prompted http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]
- 3. Federal Bureau of Investigation - Copper Theft - Press Room - Copper Thefts Threaten US Critical Infrastructure unscrupulous and sometimes unwitting independent and commercial scrap metal dealers to pay record prices for copper, regardless of its origin, making the material a more attractive target for theft. Outlook The global demand for copper, combined with the economic and home foreclosure crisis, is creating numerous opportunities for copper-theft perpetrators to exploit copper-rich targets. Organized copper theft rings may increasingly target vacant or foreclosed homes as they are a lucrative source of unattended copper inventory. Current economic conditions, such as the rising cost of gasoline, food, and consumer goods, the declining housing market, the ease through which copper is exchanged for cash, and the lack of a significant deterrent effect, make it likely that copper thefts will remain a lucrative financial resource for criminals. Industry officials have taken some countermeasures to address the copper theft problem. These include the installment of physical and technological security measures, increased collaboration among the various industry sectors, and the development of law enforcement partnerships. 9 Many states are also taking countermeasures by enacting or enhancing legislation regulating the scrap industryto include increased recordkeeping and penalties for copper theft and noncompliant scrap dealers. However, there are limited resources available to enforce these laws, and a very small percentage of perpetrators are arrested and convicted. Additionally, as copper thefts are typically addressed as misdemeanors, those individuals convicted pay relatively low fines and serve short prison terms. This intelligence assessment was prepared by the Criminal Investigative Division of the FBI. 1 WAPT.com, Copper Thieves Silence Tornado Siren, 8 April 2008, available at www.wapt.com. 2 The Orlando Sentinel, Theft Causes Power Outage, 21 March 2008, available at www.orlandosentinel.com. 3 Murphree, Julie. Copper Theft in Arizona at Epidemic Levels, Arizona Farm Bureau: Arizona Agriculture, March 2007, Vol. 60, No. 3, available at www.azfb.org. 4 Tevlin, Jon. The New Underground Currency, StarTribune.com, 12 April 2008, available at www.msnbc.msn.com. 5 The Plain Dealer, Copper Theft Ring Worked From Foreclosure Lists, Cleveland Heights Police Say, 28 March 2008, available at www.cleveland.com. 6 According to an extensive study sponsored by the Chief Security Officer web site (www.csoonline.org) Scott Berinato, Copper Theft: The Metal Theft Epidemic,1 February 2007, http://www.csoonline.com/read/020107/fea_metal.html. 7 Xinhau News Agency. Bejing to Spend More on Infrastructure for Olympics, CHINA.ORG.CN, 9, October, 2006, available at www.china.org.cn. 8 NYMEX Daily Spot Settlement Price, http://www.nymex.com (accessed on 9 March 2008). 9 US Attorney Anti-Terrorism Advisory Council Meetings with industry and law enforcement 25 April 2008 and 29 July 2008; LexisNexis; (U) Hassan, Anita. Jackson Lee Says She Will Introduce Legislation That Enlists Help of FBI, The Houston Chronicle, 6 September 2008. Headline Archives home Accessibility | eRulemaking | Freedom of Information Act/Privacy | Legal Notices | Legal Policies and Disclaimers | Links Privacy Policy | USA.gov | White House FBI.gov is an official site of the U.S. Federal Government, U.S. Department of Justice. http://www.fbi.gov/hq/majorthefts/coppertheft_120308b.htm[12/10/2008 6:26:56 AM]