Organized retail crime remains a serious problem for retailers across the country and around the world. Every day, there are countless stories about criminal enterprises victimizing stores, threatening the safety of customers and employees, and the very fabric of the retail industry. To give you a better feel for the vast impact of the problem, we have provided a glimpse into just a few of the incidents that took place in the month of July, 2024.
51 arrested in massive drug, theft bust in Southern California
We often discuss how ORC is often seen as a “Gateway” crime to all kinds of criminal activities, and this case provides a strong example: Fifty-one suspects were arrested during a multi-million-dollar drug and theft bust in Southern California. The operation was conducted by the San Bernardino Police Department along with other local agencies. During the crackdown, a stockpile of illegal and stolen goods was discovered including $8 million in stolen cargo, $325,000 in cash, 425 pounds of methamphetamine, 48 gallons of liquid meth, 20 stolen vehicles, 20 rifles and handguns, and 1 working meth lab. Photos of the bust show the stolen cargo was stored in a warehouse and, along with the seized firearms, officers found a significant amount of ammunition as well.
Retail Crime Queenpin Michelle Mack Sentenced to 5 Years in Prison
Michelle Mack, ringleader of a nationwide organized retail crime ring that targeted ULTA Beauty, Sephora, and other retailers, has received a sentence of five years and five months in a California state prison. Her husband Kenneth received the same sentence, but as a part of his plea deal he will be released after one year and then enter probation for the rest of his sentence. The massive ORC operation had been run out of the Macks’ home near San Diego. Michelle oversaw a network of over a dozen people who stole millions of dollars in merchandise from retailers. She then sold the stolen items on Amazon at a discount. Since starting the operation in 2012, Mack sold nearly $8 million in cosmetics through the online storefront.
Chicago store owner, employee charged with selling stolen goods; $2.5M in high-end merchandise confiscated
The Cook County Sheriff’s Office said at least $2.5 million worth of high-end merchandise was confiscated from a store where it was for sale. “The types of things we got, it’s just stunning. Just stunning. It’s Prada, it’s Lululemon, it’s Louis Vuitton,” said Sheriff Tom Dart. “We were sending people in to sell, and we were telling them it was stolen. We would then go back in with a different undercover officer and buy the stolen stuff we had just sold them. So, we were recovering the stuff. Everyone knew it was stolen.” Among the items the Cook County Sheriff’s Office recovered are Air Jordan 4 Retro SEs that weren’t to be sold publicly until after the Olympics. Dart said his Organized Retail Crime Team found the items were stolen from stores and train cars.
Police find 4,000+ gift cards worth over $1.7M in Texas hotel room
The arrests of two suspects led investigators to the discovery of more than $1.7 million worth of gift cards in a North Texas hotel room, police said. Police pulled the men over on a traffic violation and found “a large number of gift cards in plain view” — more than 1,000 gift cards in total. Police said the cards were “neatly packaged and organized in bundles and boxes.” The investigation ultimately led police to a hotel that was linked to the suspects. When officers obtained a search warrant for the hotel room, they found 4,017 gift cards with an estimated value of $1,720,050. Police described the suspects as being part of a “sophisticated multi-state gift card tampering ring.”
Compton businesses busted for knowingly selling stolen items from ORC groups
Two people were arrested in Compton after selling stolen merchandise that had been previously obtained by retail crime groups. The suspects are accused of running three “fencing” operations, knowingly buying stolen goods, such as power tools, construction equipment and Apple electronics, and reselling them for profit. When detectives with the LASD’s organized retail crimes task force were investigating “booster crews,” it was revealed three Compton businesses had taken in a large amount of the looted goods. The recovered merchandise is estimated to be worth about $800,000.
ORC Team stole nearly 700 TVs worth more than $680K from Virginia to Florida
Seven conspirators stole at least 691 TVs valued at more than $680,000 from 321 Walmarts and Sam’s Clubs from Virginia to Florida. Their targets were mostly 70″ and 80″ TVs valued at $600 and more. Crew members allegedly would purchase a new TV at a store and immediately take it into a box truck waiting outside. They would then unwrap the new TV and place an old, broken TV back in the new box and return it to the store. The serial number and product tags were removed from the new TVs and placed on the busted ones. The suspects were able to rewrap the broken products so well that the employees at stores thought they were returning an unopened TV box. The crew would sell the stolen, new TVs on social media for similar prices to the stores. Investigators say the investigation is ongoing.
3 women indicted, $560K in stolen goods recovered in Phoenix retail theft bust
Three women have been indicted, and hundreds of thousands of dollars’ worth of stolen health and beauty products have been recovered following a large-scale organized retail theft investigation. Police say the investigation started because of a tip from a shoplifter, who admitted to stealing high-end makeup that would be resold to the three women. The six-month undercover investigation was dubbed “Operation Makeup Breakup” and involved 32 separate search warrants. The county attorney said the women have operated unregistered businesses out of their West Valley homes since 2018, selling the goods online and in person. They also shipped the cosmetics internationally.
Washington authorities bust major theft ring, ‘fence’ arrested
The crackdown continues on an ORC theft ring accused of stealing $500K worth of clothing and other items from Lululemon and Ulta stores in Snohomish, King and Pierce County. Loss prevention investigators from those companies partnered with Bellevue police in the investigation. After conducting surveillance on the group of suspects, detectives arrested their alleged fence, who paid cash for armloads of stolen clothing. Court documents say he paid $25 cents on the dollar. Investigators believe he was shipping it all overseas to be sold. Charges were referred this week to the prosecutor on three more female suspects. An 11-year-old girl is also believed to be an accomplice.
Police Investigating $500K Jewelry Theft from JC Penney
The Antioch Police Department is asking for community assistance in a jewelry smash and grab at JC Penney. According to police, store surveillance video shows the suspect approaching the glass jewelry cases, taking a hammer or tool, smashing the glass and taking off with nearly $500k in jewelry. The suspect was also seen on video walking into the store at 8:25 p.m. and hiding in the store for a few hours before committing the crime.
Man indicted over theft of ruby slippers from ‘The Wizard of Oz” now facing ORC charges
A man accused of keeping the ruby slippers from “The Wizard of Oz” movie buried in his back yard for a number of years could face additional charges. The man was charged in 2023 in connection with the theft of the ruby slippers worn by actress Judy Garland in the 1939 movie classic nearly 20 years after they were stolen from a museum in Minnesota. As part of their ongoing investigation into the ruby slippers, the FBI and Crystal police located $400,000 worth of stolen artwork and merchandise at the suspect’s home that police allege came from various businesses throughout the area. Investigators also found tools “consistent with the operation of a retail crime ring” and ledgers detailing the sale of stolen goods on eBay. Law enforcement also accuses the suspect of assault and harassment against his wife to ensure she didn’t report his involvement in ORC to police.
6 accused of stealing $300K+ through card skimming scheme
Six people are facing charges for their alleged roles in a card-skimming scheme that targeted shoppers and ATM users in at least six states. The group is accused of installing devices that steal victims’ card information on ATMs and at retail stores, primarily on self-checkout terminals. From there, they would use that data to create counterfeit cards, then use those to make purchases and withdraw money from bank accounts. In total, the suspects withdrew more than $300,000 from victims’ accounts. The six suspects, hailing from California, are all foreign nationals who are in the country illegally and have prior run-ins with the law, according to federal prosecutors.
Police bust $200K Lego theft ring
Springfield Police Department’s (SPD) Crime Reduction Unit (CRU) revealed that a business owner was knowingly purchasing new, unopened sets of Legos that had been stolen from local retail stores. “In many cases suspects stole hundreds of dollars’ worth of Legos and then exchanged the stolen items for cash at the store, most often at a fraction of the actual retail value,” Springfield Police reports that officers learned many of the suspects were allegedly utilizing the money they received to buy and use illegal drugs. SPD partnered with loss prevention investigators from Target, Fred Meyer, Barnes & Noble, and Walmart. During the execution of the search warrant, 4,153 sets of Legos were recovered with a total value of over $200,000.
France seizes thousands of luxury counterfeits before the Paris Olympics
As France ramped up its preparations for the 2024 Summer Olympics, law enforcement officials cracked down on the sale of counterfeit luxury goods. Police officers raided one popular flea market in early April, confiscating 63,000 counterfeit items including fake Nike shoes, Louis Vuitton bags and other would-be luxury goods. Officials closed 11 stores and arrested 10 individuals. “We’ve been working a lot ahead of the Olympic Games, there were a lot of operations carried out,” according to UNIFAB head Delphine Sarfati-Sobreira. “And there were big, major operations in the Saint-Ouen area, which is 500 meters from the Olympic village.”
Home Depot loses over $100,000 from bizarre ORC ring
An investigation into nearly a dozen Home Depots revealed that several individuals had been a part of a “fraudulent bar-code-switching scheme,” with thieves scanning lower-priced items at the self-checkout but switching them out for more valuable products upon leaving the store. The group allegedly stole 281 buckets of Henry 887 Tropi-Cool roof sealant, which costs $349 per 4.75-gallon bucket by instead scanning Henry 345 Pre-Mixed Patch and Level, which costs just $40. The crew then allegedly sold the more expensive sealer, resulting in at least $100,000 in losses for Home Depot.
East Bay men charged with months-long theft of Safeway gas
Two East Bay men have been charged with an alleged scheme to illicitly buy thousands of gallons of fuel. Prosecutors allege that the first suspect used an electronic skimming device to steal credit card information from customers at undetermined businesses in the Bay Area. He allegedly used those credit cards to buy diesel fuel from a Safeway gas station in South San Jose and pump it in a “makeshift bladder” he installed in the back of a truck. He then sold the stolen fuel to a trucking company in San Leandro, at a price of $3.50 to $3.75 per gallon, compared to the state average of around $5.10 per gallon. In total, prosecutors assert that the scheme involved about $90,000 worth of fuel.
For Those Interested in Learning More
July was another busy month for those involved in organized retail crime. For those interested in learning more, here are some of the additional incidents that took place this month. Click on the links to explore some of these events:
Man and 3 minors charged in scheme to steal $72K in alcohol from ABC stores
Thieves have robbed liquor stores in Fairfax County, Virginia by loading up carts with alcohol, making off with more than $72,000 in stolen merchandise. An adult and three juveniles have been charged and additional arrests are possible.
Man indicted for ORC throughout the Phoenix market
A man was indicted for 42 counts of organized retail crime and shoplifting throughout the Phoenix market, primarily targeting high-end construction equipment at Home Depot stores worth nearly $60,000.
Man pleads guilty to stealing golf equipment worth $40,000
A man accused of stealing more than $40,000 dollars’ worth of golf equipment in Scottsdale and other Valley cities is now behind bars, with a total of $43,000 stolen between 11 stores.
$40K in eyewear, cigarettes, other items stolen
Delaware State Police have arrested a man accused of stealing over $40,000 in eyewear, various household goods and cigarettes through a string of incidents. He was later identified as one of the suspects responsible for “18 shopliftings from multiple businesses throughout New Castle County over the last month.”
Woman allegedly spent months stealing $36,000 worth of household appliances
A woman was arrested after allegedly stealing household appliances from retail stores, including thefts at various Target, Kohl’s and Costco. The suspect allegedly worked with teenage accomplices to steal blenders, mixers, vacuums, cookware and apparel over the course of several months, reselling the merchandise online.
Police dismantle ‘Diaper Crew’ accused of retail thefts in Philadelphia
Authorities in Philadelphia arrested three people who they say were linked to more than two dozen retail thefts around the city. The “Diaper Crew” targeted Family Dollar, Dollar General and Rite Aid stores, with the suspects accused of stealing diapers, batteries and coffee worth at least $14,000, reselling the stolen items to day cares or other stores.
Your input and support can help send a critical message. If you have an ORC case that you would like to submit for the monthly round-up, please forward an email to us at editor@losspreventionmedia.com.