A business owner and one of his employees both face felony charges in connection with a "chop shop" operation involving stolen vehicles in Wayne County, Michigan.

Michigan Attorney General Dana Nessel announced the cases against the two men Monday.  

Mohamad El-Hadi, 41, of Canton, the owner of Hadi's Cash for Cars in Wayne, was charged with one count of motor vehicles – operating a chop shop and three counts of stolen property – receiving and concealing a motor vehicle. Dani Mourad, 44, of Dearborn Heights, was charged with one count of stolen property – receiving and concealing a motor vehicle. 

Operating a chop shop is a 10-year felony. The receiving stolen property charge is a five-year felony. 

The state attorney general's office accuses El-Hadi of operating a chop shop where at least three vehicles that had been reported stolen were discovered crushed in the company's tow yard – specifically a 2009 Kia Sorrento, a 2013 Honda Odyssey and a 2017 Buick Encore. 

Prosecutors accuse Mourad of picking up one of the stolen vehicles. 

"The Auto Fraud Task Force was created to tackle exactly this kind of alleged criminal activity," Nessel said. "By embedding prosecutors directly within the Michigan State Police, we can continue dismantling auto theft and chop shop operations that threaten communities across our state." 

The Auto Fraud Task Force, which formed in January, is an expansion of the attorney general's former Auto Insurance Fraud Unit. The task force also partners with the Michigan State Police Metro Detroit Auto-Theft Recovery Team, which focuses on auto theft rings operating in Metro Detroit. 

El-Hadi was arraigned Thursday in the 29th District Court in Wayne, where his bond was set at $25,000 personal recognizance. Mourad was arraigned Friday in the 29th District Court, where his bond was set at $15,000 personal recognizance. Their next court hearings are Aug. 18.