The US Attorney’s Office announced that two men, accused of playing leading roles in an organized theft ring, were arrested and charged on Monday.
Federal officials stated that this follows the seizure of approximately 60,000 stolen items valued at around $1.6 million.
The investigation is linked to a raid conducted at a Rhode Island home last week.
Federal prosecutors claim that the two men, 52-year-old Norman L. Cipriano from Warwick, Rhode Island and 59-year-old Patrick M. Vigneau from Cranston, held senior wholesaler positions within the theft crime rings.
According to officials, the retail theft ring targeted retailers across the country and resold stolen goods in large quantities to other retailers.
The stolen items included cosmetics, over-the-counter medications, and various high-end products, federal prosecutors noted.
Federal officials stated that the two men held roles known as “diverters,” creating shell companies, managing warehouses where stolen goods are stored, and serving as suppliers for small- to mid-sized retail chains.
Investigators noted that the two sold the stolen merchandise to smaller brick-and-mortar retailers and e-commerce sites.
According to federal prosecutors, the Rhode Island-based organized retail crime operation has allegedly generated around $12.3 million in sales.
“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” said US Attorney Zachary A. Cunha. “In addition to imposing higher prices on legitimate retail consumers, theft rings like this one put unsuspecting customers at risk from damaged, expired, or adulterated goods, and impose untold economic costs.”
Federal prosecutors reported that they carried out several search warrants in Warwick, Cranston, and Pawtucket, Rhode Island.
They confiscated stolen goods sufficient to fill three 24-foot box trucks, Cunha stated at the press conference.
Cipriano and Vigneau are facing charges related to the interstate transportation of stolen goods, conspiracy to commit that transportation, money laundering, conspiracy to commit money laundering, and engaging in monetary transactions involving property obtained through illegal activity.
“This was not a victory lap, but a call to action consumers be ware do you due diligence by from reputable sellers,” said Michael J. Krol, special agent in charge, Homeland Security. “Their actions represent a complete and utter disregard for the rule of law.”
Affected retailers include Walmart and Stop & Shop, according to court documents.
At a press conference on Monday, Cunha outlined the hierarchy of the theft crime ring.
Investigators indicated that the organized theft rings include individuals known as “boosters” who steal items from retail stores, guided by crew bosses.
The stolen items are then passed on to “fencers,” who act as intermediaries. Fencers then pass the stolen items to “cleansers,” who remove retail and anti-theft stickers and devices to make the goods appear new, officials stated.
The items are subsequently delivered to “diverters,” who function as wholesalers or salespeople, selling the stolen goods to small and mid-sized retailers.
Federal prosecutors alleged that Cipriano and Vigneau served as the “diverters.”