Six true-billed in Grand Jury indictment for Operation Alchemy

Nov. 15—BAINBRIDGE- An investigation spanning over two years was brought in front of a Grand Jury in Bainbridge, Ga. last week, where six individuals were true billed on over 100 charges in relation to Operation Alchemy, which was investigated as a Racketeering Influenced and Corrupt Organizations Act (RICO) case.

The case began in summer of 2021, when two concerned citizens met with Decatur County Sheriff Wiley Griffin concerning catalytic converter sales and resales in S.W. Georgia. The sales spanned throughout the region, and through the joint effort of the DCSO, Bainbridge Public Safety, Grady County Sheriff's Office, Mitchell County Sheriff's Office, Camilla Police Department, Seminole County Sheriff's Office, Early County Sheriff's and Joe Mulholland/District Attorney's Office, investigators were able to track the resales specifically to SmithCo. Recycling in Bainbridge, Ga.

The case was particular in the fact the company was accused of conspiring with other individuals to acquire currency through a pattern of racketeering. During the Grand Jury presentation, investigators revealed the scheme which SmithCo. was using to make this possible.

Garrett and Stacey Smith founded SmithCo. Recycling and SmithCo. Transfer in 2016. During that time, they are accused of employing or forming associations with individuals who would encourage others to bring in stolen catalytic converters and other regulated metals. The Smiths, along with their associates, would then purchase the items in violation of Georgia law. To avoid detection, they reportedly would not garner the necessary information that a legitimate scrap metal business would be required to obtain under the law.

They often purchased catalytic converters that were stolen from church buses and similar vehicles, which hold a higher value due to the precious metals contained in those specific converters. Employees traveled all over Georgia to areas, including Thomasville, Florida and Alabama in search of catalytic converters and other regulated metals.

Additionally, the company purposely omitted or falsified purchase data in a system known as "ScrapRight" and did not ensure that the state required data was being properly reported to the appropriate data base.

In attempts to conceal the purchasing of stolen property, SmithCo. associates and employees reportedly would often use tactics such as, cutting or straw purchases.

SmithCo. was confronted by law enforcement agencies on multiple occasions for their questionable business practices related to regulated metals. They were warned they were subject to prosecution if they did not adhere to Georgia law. Rather than comply, SmithCo. set up "straw purchasers" in an effort to circumvent the secondary metal recycling laws.

Cal Cowart, who is named in the indictment, was utilized in the scheme to steal the converters by cutting them off the vehicle. He would then sell the stolen converters to straw purchasers and middle men, John Commerford or Lester Burl Phillips.

Phillips and Commerford would then in turn sell them to Garrett Smith, who would price the stolen catalytic converters, before turning them over to Stacey, who maintained the books for their business.

They are also accused of purchasing large spools of new/unused copper wire from Moss Solar employees that were often still banded and/or wrapped in plastic, at a price well below market value. In order to avoid detection, the company would cut the wire into small "scrap" pieces.

Metal and catalytic converters were not the only items SmithCo. is accused of stealing. It is reported in the indictment, the company had meetings with Seminole Sanitation (a roll-off container business) and Cumbaa Enterprises to discuss the purchasing of these businesses. When an agreement could not be reached, SmithCo. facilitated the theft of property from these businesses utilizing their employees or associates.

Employees would remove identifying markings and repaint the stolen roll-off containers before utilizing, renting and selling these containers for their own profit.

Jason Giannars, a former employee of Seminole Sanitation and current employee of SmithCo. was accused in the indictment of taking the roll-off containers to SmithCo., where they were repainted and and repurposed for SmithCo. use.

Upon presenting all information to the Grand Jury, all six individuals were true billed and charged without bond.

Garrett Smith was charged with three counts of violating the RICO Act and 59 counts of theft by receiving stolen property. His wife, Stacey Smith was charged with three counts of violating the RICO Act and 28 counts of theft by receiving stolen property over the course of two years.

Giannars was charged with three counts of violating the RICO Act and faces charges of theft by conversion.

Commerford was charged with three counts of violation the RICO Act and 10 counts of theft by receiving stolen property.

Cowart and Phillips were charged with three counts of violation the RICO Act as well.