Scrap Metal Dealer Pleads Guilty in Multi-State Catalytic Converter Theft Conspiracy

HARRISBURG, Pa. — A New York man has been sentenced to seven years in federal prison after being convicted of interstate travel in aid of drug trafficking and for violating the terms of his supervised release. The U.S. Attorney’s Office for the Middle District of Pennsylvania announced on Wednesday that Marcello Whyte, 40, of Queens, New York, received the sentence on August 21.

Whyte was initially convicted in 2011 for conspiring to distribute between 100 and 400 kilograms of marijuana and was sentenced to 70 months in prison, followed by four years of supervised release. Just five months after his release, Whyte was apprehended on March 18, 2016, by Pennsylvania State Police during a traffic stop on I-81. Authorities discovered approximately 249 grams of cocaine in the rented vehicle he was driving from New York to Pennsylvania.

In 2019, Whyte pled guilty to charges related to interstate drug trafficking but remained free pending sentencing. In July 2020, he was arrested again in New York, this time found in possession of a loaded firearm and marijuana. After posting bail, Whyte failed to appear for his federal sentencing and became a fugitive. He remained at large for nearly four years until his arrest on March 23, 2024, in New York on new controlled substance charges.

The charges against Whyte in New York remain pending. The case is part of Project Safe Neighborhoods, a nationwide initiative aimed at reducing violent crime and gun violence through collaboration between law enforcement and communities.

NEWARK, N.J. — A California man has admitted to conspiring to launder money obtained through internet-related fraud schemes, U.S. Attorney Philip R. Sellinger announced on Tuesday. Charles Singleton, 64, of Los Angeles, pleaded guilty before U.S. District Judge Madeline Cox Arleo to one count of conspiracy to commit money laundering.

According to court documents and statements made in court, Singleton was involved in a scheme from September 2018 to August 2020, during which he collaborated with others to launder money acquired through business email compromises (BEC). BEC is a type of wire fraud that typically targets businesses or individuals involved in high-value financial transactions. Fraudsters achieve this by compromising, hacking, or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques. This deception leads employees or individuals to unknowingly authorize transfers of funds to accounts controlled by the perpetrators.

Singleton played a crucial role in the operation by opening several business bank accounts under the names of companies he controlled. These accounts received proceeds from the wire fraud activities. Singleton and his conspirators then moved the money through various bank accounts, sharing account information among themselves to facilitate the transfers. Singleton also participated in executing fraudulent contracts, including one instance where he arranged a $70,000 wire transfer as part of the scheme. As part of his plea agreement, Singleton has agreed to forfeit over $1.1 million, representing the proceeds derived from the conspiracy.

Sentencing details and the potential penalties Singleton may face were not immediately provided in the release.

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.