RICHMOND, Va. — A North Carolina scrap metal dealer and business owner has been sentenced to over two years in prison for his involvement in a multi-state catalytic converter theft conspiracy, the U.S. Department of Justice (DOJ) announced on March 12.
Theodore Nicholas Papouloglou, 45, of North Carolina, was sentenced to two years and three months behind bars after pleading guilty to theft and fraud charges related to the widespread operation. The conspiracy, which ran through multiple states, targeted catalytic converters for the precious metals they contained, including palladium, platinum, and rhodium — metals so valuable that they surpass gold in price per ounce.
According to court documents, Papouloglou played a central role in the operation through his business, DG Auto South, located in Emporia, Virginia. He would purchase stolen catalytic converters from thieves, then transport them to co-conspirators in New Jersey for resale. In 2020 and 2021, Papouloglou’s illicit activities earned him over $12.2 million in profits. However, the DOJ noted that he failed to report any income from these transactions or from his auto business during those two years, evading taxes on his earnings.
In addition to purchasing stolen catalytic converters, Papouloglou also facilitated bulk cash payments between his New Jersey associates and sellers in states like Texas and Oklahoma. The financial transactions related to this part of the scheme totaled at least $6.6 million.
Papouloglou used his unlawful earnings to fund a lavish lifestyle, including purchasing luxury real estate, a high-end motorcycle for his girlfriend, and frequenting casinos in Las Vegas. His extravagant spending came to a halt with his sentencing, which also included the seizure of several high-value vehicles tied to his crimes. The vehicles forfeited to the DOJ included:
- 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)
Papouloglou’s sentence serves as a stark reminder of the severe consequences of participating in organized crime, particularly those targeting valuable resources like catalytic converters. The thefts have caused significant financial losses, and the crackdown on this illegal operation underscores the DOJ’s commitment to addressing such crimes.
