Chief of US Retail Theft Ring That Allegedly Stole $8 Million in Cosmetics Caught

From a mansion in a San Diego suburb, Michelle Mack allegedly oversaw a retail theft ring that stole $8 million in cosmetics from shops equivalent to Ulta Magnificence and Sephora, which she then offered on Amazon.

In December, police arrested the 53-year-old alongside together with her husband, Kenneth, taking the pair into custody on their sprawling property, in keeping with footage taken by CNBC and revealed this week. Their teen daughters watched close by, the outlet reported.

The couple was arrested together with seven individuals who allegedly participated within the thefts after an investigation by state and federal companies and groups from Sephora and Ulta Magnificence, the California legal professional normal’s workplace introduced in a assertion final month.

“Organised retail crime has vital monetary and security implications for companies, retailers and customers,” mentioned Rob Bonta, the state’s legal professional normal. “At present, we’re addressing an audacious occasion of organised retail theft and making it clear that such felony exercise is not going to be accepted in California.”

The arrest comes as lawmakers and officers have pledged to crack down on retail theft. Main corporations from Walgreens to Ulta to Walmart have mentioned thefts are rising and chopping their income whereas high-profile “smash and seize” robberies in California have made headlines nationwide. However the precise extent of the affect is unclear and a few consultants have steered retailers could also be exaggerating the results.

Walgreens reported that thefts surged in 2022, even forcing it to shut some shops in San Francisco, however later indicated it could have overstated the issue. In December, the Nationwide Retail Federation, a robust lobbying group, retracted a declare that half of the business’s $94.5 billion stock losses in 2021 was due “organised retail crime”.

The size of Mack’s alleged crime ring seems to be substantial with contributors allegedly paid to steal objects from shops in 21 counties from Sacramento to Los Angeles. The arrests adopted an investigation by the California division of justice, California freeway patrol, Division of Homeland Safety, US Postal Inspection Service and representatives from Sephora and Ulta, the legal professional normal’s workplace mentioned.

Mack allegedly operated the ring from her 4,500-sq-ft residence, which had a winery and chapel that she and her husband rented out for weddings. She is accused of recruiting ladies to go to retail shops and “commit bulk thefts of particular high-demand make-up product” that she would promote on her Amazon retailer.

Her retailer offered items at nearly 50 % lower than retail value and introduced in nearly $2 million in 2022.

Authorities discovered massive quantities of still-packaged make-up “organised and prepped for transport” at Mack’s residence, in keeping with the grievance. With help from Ulta Magnificence and Sephora, they recovered an estimated $400,000 in merchandise from residences.

Mack and her husband have pleaded not responsible.

By Dani Anguiano

Be taught extra:

The Organised Retail Crime Phenomenon, Defined

Experiences of large-scale theft rings are driving US lawmakers to discover tough-on-crime insurance policies. Knowledge on whether or not there’s a crime wave paints a extra ambiguous image. BoF unpacks the murky state of affairs.