Organized retail theft ring that focused Macy’s, different retailers is charged in New York

Organized retail theft ring that focused Macy’s, different retailers is charged in New York

The Macy’s emblem is seen at its retailer in Herald Sq. in New York Metropolis on Jan. 19, 2024.

Michael M. Santiago | Getty Photographs

A New York magnificence retailer simply blocks away from the Empire State Constructing resold greater than $1 million price of products that’ had been stolen from Macy’s and a slew of different retailers, authorities said Wednesday.

Two New Yorkers had been charged with possessing greater than $1 million in stolen items and reselling them by means of their enterprise, Rehana’s Cosmetics, a fragrance and cosmetics retailer in Midtown Manhattan, the borough’s district lawyer Alvin Bragg mentioned at a press convention.

About $212,000 of the merchandise was stolen from Macy’s, whereas the remaining got here from CVS, Rite Aid, Walgreens and Walgreens-owned Duane Reade, Ulta, Victoria’s Secret, Bath & Body Works and the NHL Store, Bragg mentioned.

“By our investigation, we discovered that Rehana’s Cosmetics was well-known to shoplifters, who would willingly deliver them stolen objects,” Bragg mentioned. “We allege that created a motive for shoplifters to steal, and thus that the defendants, we allege, had been drivers of crime.”

Manhattan District Legal professional Alvin Bragg introduced an indictment referring to greater than $1 million in stolen items as a part of a retail theft fencing operation.

Courtesy: Manhattan District Legal professional’s Workplace

Rehana’s Cosmetics, Bragg alleged, claimed to be a “magnificence and fragrance retailer,” however was as an alternative discovered to have a whole lot of packing containers full of merchandise not sometimes discovered at such shops, together with designer purses, over-the-counter medicines, kitchenware and extra. He mentioned the defendants obtained the stolen objects from shoplifters for the aim of reselling.

“The foundation trigger we allege right here is greed,” Bragg mentioned. “They had been doing this to generate profits. That is the motive that’s outdated as time.”

The costs come as retailers akin to Target and Ulta more and more cite theft as a growing problem at their shops. In March, a monthslong CNBC investigation confirmed how police broke up an organized retail crime ring that stole thousands and thousands in cosmetics from Ulta shops and resold them on Amazon.

Whereas Bragg was unable to present a particular quantity when requested what number of shops are believed to be participating in comparable operations, he famous that there have been “far too many assaults” on staff at shops which have skilled theft.

“Through the use of a multi-pronged prosecution technique, we are able to make a long-lasting dent in retail theft that can preserve our retailer staff secure, lower off the incentives to steal and resell stolen items and permit our retail sector to thrive,” he mentioned.

In an announcement to CNBC, a Macy’s spokesperson mentioned, “We recognize the work of regulation enforcement and the Manhattan District Legal professional’s Workplace and defer any feedback in regards to the case to them.”

A spokesperson for CVS mentioned the pharmacy is “grateful” for the work of the Manhattan District Legal professional’s workplace.

Manhattan District Legal professional Alvin Bragg introduced an indictment referring to greater than $1 million in stolen items as a part of a retail theft fencing operation.

Courtesy: Manhattan District Legal professional’s Workplace

“Our partnerships with regulation enforcement are integral to our efforts to stop organized retail crime (ORC) rings from stealing after which promoting stolen items on-line. We look ahead to persevering with our sturdy partnership with the DA’s Workplace as we work to fight ORC throughout New York Metropolis,” the spokesperson mentioned.

A Walgreens spokesperson informed CNBC earlier this 12 months that the chain is taking steps to “safely deter theft” and “ship the perfect affected person and buyer expertise.”

The opposite retailers alleged to have stolen items included within the bust didn’t instantly reply to CNBC’s request for remark.

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