Scrap Metallic Vendor Pleads Responsible in Multistate Catalytic Converter Theft Conspiracy

A scrap metallic vendor with a Virginia store pled responsible this week to theft and tax prices associated to his participation in a multi-state catalytic converter theft conspiracy.

In keeping with court docket paperwork, Theodore Nicholas Papouloglou, 45, used his enterprise, DG Auto South in Emporia, Virginia to buy stolen catalytic converters from thieves. Papouloglou then transported the stolen catalytic converters to his co-conspirators in New Jersey for cargo of the catalytic metals to Japan.

Prosecutors stated that in 2020 and 2021, Papouloglou acquired greater than $12.2 million in wired funds from his co-conspirators in New Jersey, together with for proceeds from his illicit sale of catalytic converters.

Regardless of realizing earnings from DG Auto South, Papouloglou paid no taxes in 2020 and 2021, prosecutors charged.

Papouloglou, who’s from North Carolina, individually helped his co-conspirators in New Jersey buy stolen catalytic converters from different sellers, together with sellers in Texas and Oklahoma, by facilitating bulk money funds. The overall worth of the funds that Papouloglou illicitly transferred was no less than $6.6 million.

Legislation enforcement seized and Papouloglou agreed to forfeit eight autos related to the offense together with a Mercedes, a Ferrari, a Lamborghini, two McLarens, two Fords and a Jeep.

Catalytic converters, which cut back poisonous fuel and pollution from a car’s exhaust system, use valuable metals of their facilities, or “cores,” and are often focused for theft as a result of excessive worth of those metals, particularly palladium, platinum, and rhodium. Specialists say a few of these are extra helpful per ounce than gold, and the black-market value for catalytic converters might be above $1,000. A catalytic converter might be stolen from an car undercarriage in lower than a minute.

U.S. District Choose David J. Novak accepted the responsible plea. Papouloglou is scheduled to be sentenced on Feb. 20, 2025.

The U.S. Legal professional for the Japanese District of Virginia, the Inner Income Service, the Federal Bureau of Investigation and the U.S. Division of Justice participated within the investigation and prosecution.

Supply: U.S. Legal professional

Subjects
Fraud