Scrap metal dealer sentenced to over two years in prison for multi-state catalytic converter theft conspiracy

RICHMOND, Va. – A North Carolina scrap metal dealer was sentenced today to two years and three months in prison for theft and tax charges related to his participation in a multi-state catalytic converter theft conspiracy.

According to court documents, Theodore Nicholas Papouloglou, 45, used his business, DG Auto South in Emporia to purchase stolen catalytic converters from thieves. Papouloglou then transported the stolen catalytic converters to his co-conspirators in New Jersey for shipment of the catalytic metals to Japan. In 2020 and 2021, Papouloglou received over $12.2 million in wired payments from his co-conspirators in New Jersey, including for proceeds from his illicit sale of catalytic converters. Papouloglou spent the money he received from DG Auto South on personal expenses, such as purchasing real estate and a luxury motorcycle for his girlfriend and to gamble at casinos in Las Vegas. Despite realizing income from DG Auto South, Papouloglou paid no taxes in 2020 and 2021.

Catalytic converters, which reduce toxic gas and pollutants from a vehicle’s exhaust system, use precious metals in their centers, or “cores,” and are regularly targeted for theft due to the high value of these metals, especially palladium, platinum, and rhodium.

Papouloglou separately helped his co-conspirators in New Jersey to purchase stolen catalytic converters from other sellers, including sellers in Texas and Oklahoma, by facilitating bulk cash payments. The total value of the funds that Papouloglou illicitly transferred was at least $6.6 million.

Papouloglou pled guilty on Aug. 20, 2024, and must forfeit various vehicles associated with the offense:

(1) 2021 Ford F250 (Roush)

(2) 2021 Jeep Gladiator Sport (Apocalypse)

(3) 2017 Lamborghini Huracan (Convertible)

(4) 2020 McLaren 720s (Convertible)

(5) 2021 Mercedes-AMG G63

(6) 2019 Ferrari 488 Pista

(7) 2021 McLaren 765LT

(8) 2021 Ford F450 (Super Duty)

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.

Assistant U.S. Attorney Avi Panth and former Assistant U.S. Attorney Kashan K. Pathan prosecuted the case. The Justice Department’s Violent Crime and Racketeering Section assisted with the prosecution.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-42.