Federal prosecutors say unreported income tied to sales of stolen converters
A Providence man has pleaded guilty in federal court to filing false tax returns after failing to report hundreds of thousands of dollars in income generated from the sale of stolen catalytic converters, federal prosecutors announced.
Daniel Rivera, 36, of Providence, pleaded guilty to two counts of filing false tax returns in U.S. District Court in Providence, according to an announcement by United States Attorney Charles C. Calenda. Rivera is scheduled to be sentenced on June 17, 2026.
The sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Income from stolen converters not reported
According to information presented in court, Rivera received approximately $59,890 in 2021 and $224,750 in 2022 from the sale of stolen catalytic converters but failed to report those amounts on his federal income tax returns.
Prosecutors said the false filings resulted in estimated tax losses of approximately $13,426 for the 2021 tax year and $55,930 for the 2022 tax year.
Theft activity spanned Rhode Island and Massachusetts
Charging documents state that from January 2021 through November 2022, Rivera and others canvassed neighborhoods and parking lots in Rhode Island and Massachusetts for unoccupied vehicles from which they could steal catalytic converters.
Many of the stolen converters were later sold to a Providence scrap yard identified in court documents as “Company 1,” which recycles catalytic converters.
Scrap prices for catalytic converters typically ranged from $300 to $1,500, depending on the vehicle model and the type of precious metal components contained in the converter.
Multi-agency investigation
The case is being prosecuted by Assistant United States Attorneys Paul F. Daly, Jr. and Julie M. White.
The investigation involved multiple law enforcement agencies, including:
- The Federal Bureau of Investigation (FBI)
- IRS–Criminal Investigation
- United States Marshals Service
- National Insurance Crime Bureau (NICB)
- Providence Police Department
- Cranston Police Department
- Newport Police Department
- Fitchburg State University Police
- Watertown Police Department
- Canton Police Department
- Attleboro Police Department
- Fall River Police Department
- Department of Veterans Affairs Office of Inspector General – Criminal Investigations Division
Federal prosecutors said the investigation focused on theft activity that targeted vehicles across Rhode Island and Massachusetts and generated hundreds of thousands of dollars in proceeds from the sale of catalytic converters.
