RICHMOND, Va. — A North Carolina scrap metal dealer has pleaded guilty to theft and tax charges for his role in a multi-state catalytic converter theft conspiracy, U.S. Attorney’s Office for the Eastern District of Virginia announced on Tuesday. Theodore Nicholas Papouloglou, 45, admitted to using his business, DG Auto South in Emporia, Virginia, to purchase stolen catalytic converters from thieves and then transporting them to co-conspirators in New Jersey, who arranged for the shipment of the catalytic metals to Japan.
According to court documents, Papouloglou’s illegal activities took place during 2020 and 2021, during which time he received over $12.2 million in wired payments from his New Jersey co-conspirators, including proceeds from the sale of stolen catalytic converters. Papouloglou used these funds for personal expenses, including purchasing real estate, a luxury motorcycle for his girlfriend, and gambling at casinos in Las Vegas. Despite earning significant income from these illicit activities, Papouloglou did not pay taxes in 2020 or 2021.
In addition to his direct involvement, Papouloglou facilitated the purchase of stolen catalytic converters from other sellers in Texas and Oklahoma, arranging bulk cash payments on behalf of his New Jersey co-conspirators. The total value of the funds he illicitly transferred amounted to at least $6.6 million.
Law enforcement officials seized multiple high-end vehicles associated with Papouloglou’s offenses, which he agreed to forfeit. The vehicles include:
- 2021 Ford F250 (Roush)
- 2021 Jeep Gladiator Sport (Apocalypse)
- 2017 Lamborghini Huracan (Convertible)
- 2020 McLaren 720s (Convertible)
- 2021 Mercedes-AMG G63
- 2019 Ferrari 488 Pista
- 2021 McLaren 765LT
- 2021 Ford F450 (Super Duty)
Catalytic converters are frequently targeted for theft due to the high value of the precious metals in their cores, such as palladium, platinum, and rhodium, some of which are more valuable per ounce than gold. The black-market price for catalytic converters can exceed $1,000, and they can be stolen from a vehicle’s undercarriage in less than a minute.
Papouloglou is scheduled to be sentenced on February 20, 2025, and faces a maximum penalty of 10 years in prison. Sentences for federal crimes are typically less than the maximum penalties, with the final sentence to be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors.