FRITZ is running a secret chop shop. A "chop shop" is a business that disassembles stolen vehicles for the purpose of selling them either as parts, or assembling a new vehicle from parts of different vehicles.
FRITZ is selling to the U.S. Army
More and more FRITZ is turning out to be the hero of this story, his illegal activities are raising money for an orphanage (admittedly by employing orphans as child labour, but no one's perfect!).