Despite several character letters contained in his case file to bolster the defense’s argument for a non-custodial sentence next week, the United States government says Theodore Nicholas Papouloglou is not deserving of one.
The current calculated guideline range for his sentencing is 21 to 27 months in his federal evasion of income tax assessments and conspiracy to transfer, receive, conceal and sell stolen goods case, which is related to stolen catalytic converters.
In a January 30 sentencing memorandum United States Attorney Erik S. Siebert argued for an upward sentence of 57 months for the Roanoke Rapids man.
The government claims that Papouloglou’s crimes were motivated by greed and sustained over time.
The character letters paint a different portrait.
‘He is like a brother to me’
“He is like a brother to me and my best friend and (that’s) saying a lot because friends are not something that stay in my life. I know that due to his situation, nobody right now knows what the outcome will be, but I hate to see such a great person go through any of this. Not only will I be missing him dearly, but I know my kids will as well. He has become not only a friend to them but a great figure in their life.”
‘An asset to our community’
“I believe that regardless of the recent events and decisions that were made Nick is a good person at heart. I do not believe he would do anything with intentions of breaking a law. I still believe that Nick is an asset to our community and to my family. Please consider the kind and warm person Nick is when a conclusion is made on these errors he has unfortunately made in the past.”
‘An honorable individual’
“Despite the current case, I still believe Mr. (Papouloglou) to be an honorable individual, a valuable member of my community, and a good human (being).”
‘Does not represent his true character’
“While I understand the seriousness of the charges against him, this incident does not represent his true character. Nick has expressed sincere remorse for his actions and is actively taking steps to address the underlying issues that led to this situation. I am confident that (Nick) can learn from this mistake and become a productive member of society. I strongly urge the court to consider his positive qualities and potential for rehabilitation when deciding his case.”
‘Helpful, kind and caring’
“He has brought me his family vehicles (Mother and sister) for repair and paid, never asking for any discount or anything in return. Nick always has asked me if he can help in any way after telling me how busy he is. I have always witnessed Nick as being helpful, kind and caring to anyone else he is around, and humble. He often makes comments about working to (support) his family.”
‘A true friend’
“You know Theodore from what you see on paper, I know Theodore from what I’ve seen in person and what a wonderful person that he truly is. He has been a true friend in many ways to my family and done many good deeds for our community. I hope that you see beyond what (is) in the file in front of you and into the soul of a man that is truly one I am honored to know and call (a) friend.”
‘Correct his wrongs’
“I believe that regardless of the recent events and decisions that were made Nick is a hardworking and honest person. I believe he has made an error and will correct his wrongs. In the 35 years of knowing Nick, I have never known him to be involved on the wrong side of the law until this recent situation or have any dishonest intentions. I do not believe he is of any (threat) of repeating his wrongdoings and will only move forward from his mistake. Please consider my opinion when making your decision on Nick’s behalf.”
‘He will learn from this experience’
“While I understand that Theodore has found himself in this situation, I believe this is not reflective of his true nature. From my perspective, he has always been a responsible and compassionate individual, and I have no doubt that he will learn from this experience and continue to contribute positively to the community.”
‘Always willing to help’
“He is always willing to help. He is an honest person and he is also a very hard worker.”
‘Very big-hearted’
“He is very big-hearted. He is always willing to help anyone that needs help. He is trustworthy. He is family to us and we love him very much.”
‘Stories’
“Stories can be made to make anyone look like a bad person but that's just what they are — STORIES. Nick is a 100% good guy and what makes him 100% is he knows me and would do anything for me at any time but that's not what makes him 100%. What makes him 100% (is) he would help you with anything at any time.”
‘Nicholas is truly upset’
“I know and believe wholeheartedly that Nicholas is truly upset with all the trouble he has been accused of causing. He has told myself on multiple occasions that what bothers him is that his friends have shown their true colors and have left him high and dry. The last time I saw Nicholas before I had moved he told me no one had been to visit him except his sister and one other person and that if it wasn't for his one friend he probably wouldn't have eaten that week because of the depression he was going through. I am thankful for said friend and his sister to make sure he had food and was truly taking care of himself. Nicholas has always again had a big heart and to see him weak and alone is just completely out of character.”
‘Judge, please have mercy on my friend and brother’
“Judge, please have mercy on my friend and brother. We all make mistakes and fall short of the glory of God. But I know Theodore has learned his lesson. Sending him to prison doesn't do him nor society any good. He's a humble and honorable young man. Please give him a second chance and don't throw him away. I can hear and feel the interpretation and uncertainty in his voice not knowing what will happen. But I can assure you that if given the opportunity, he will not make the same mistakes and will be a productive member of society. I'm asking the judge to give him probation and give him a chance to redeem himself.”
The government’s view
In a motion in opposition to a downward variance filed earlier this week, Siebert wrote, “The defense downward variance argument for a non-custodial sentence fails to appropriately balance the factors.”
And in arguing against a downward variance the government responded to specific points Papouloglou raised in his pleading.
His bulk cash money transfers had no lawful component. “Papouloglou claims not all of his business activities were illegal. This is true as it pertains to the Count 3 misconduct — i.e., Papouloglou’s conspiracy to purchase, transport across state lines, and sell stolen catalytic converters to COMPANY A — and the government has acknowledged as much in prior pleadings.”
In the statement of facts, however, all Papouloglou’s conduct related to facilitating bulk cash payments to other co-conspirators was illicit.
The total value of the funds that he illicitly transferred was at least appropriately $6,649,313. “In other words, Papouloglou’s bulk cash transmission activity had no lawful purpose.”
Mere lapses versus length of misconduct
The government says that Papouloglou’s characterization of his crimes as mere lapses in judgment fails to adequately explain the length of his criminal misconduct — as early as 2020 through around November 2, 2022. “Nor does it appropriately capture Papouloglou’s creativity in finding numerous ways to profit from stolen catalytic converters — including by directly purchasing and transporting stolen catalytic converters, by engaging in a money laundering and money transmission scheme to facilitate an illicit black market for stolen catalytic converters, and by failing to pay taxes on concomitant income from his illicit catalytic converter activity.”
No evidence of coercion
The government says there is no evidence on record to show that Papouloglou’s involvement in the offense was in any way coerced or that Papouloglou’s co-conspirators in New Jersey incentivized him to do their bidding. “Papouloglou’s characterization of his co-conspirators as the much larger and sophisticated criminal organization, fails to account for Papouloglou’s own integral role in that very same organization — listed as COMPANY A in the statement of facts. Papouloglou used much of COMPANY A’s infrastructure, such as the proprietary COMPANY A App to price catalytic converters.”
Papouloglou described the COMPANY A App as his. “Papouloglou transported stolen catalytic converters to COMPANY A directly and facilitated millions of dollars of illicit payments to COMPANY A’s other customers for stolen catalytic converters. Papouloglou’s attempts to create distance from the broader organized crime group fall flat.”
Treatment of family
And, the government argues, Papouloglou’s use of his family to commit crimes deserves punishment.
Papouloglou submitted a letter from his mother, purporting to show his “deep commitment to his family … and that this incident does not represent his true character.”
Yet, the government said, Papouloglou used his own mother as an instrument for his criminal activity. As part of Papouloglou’s tax crimes in 2020, he received at least $1,795,431 in gross receipts to his company, Strategic Converter and reduced this money to personal income. He obfuscated the fact that these funds were income to duck the IRS.
“To extract personal income from his businesses, on at least five separate occasions in 2020, Papouloglou wrote checks totaling $14,185 from the BB&T bank account in the name of Strategic Converter to (his) mother. Papouloglou’s mother had no reason to receive these checks, since she did not do any work for Papouloglou’s business.”
He then forged his mother’s signature on the endorsement lines of these checks and never gave his mother any of the money. “When confronted with the checks that (his mother) purportedly endorsed, (she) broke down in tears, proclaimed that her signature was forged on each of these checks, and identified Papouloglou’s handwriting as the source of the forgery on each check.”
The document closes, saying, “Papouloglou’s treatment of his family deserves harsher punishment, not leniency.”
