Organized theft ring targeting Macy’s indicted in New York

A New York beauty store just blocks from the Empire State Building has resold more than $1 million worth of stolen goods. Macy’s and a large number of other retailers, authorities announced Wednesday.

Two New Yorkers have been charged with possessing more than $1 million in stolen goods and reselling them through their business, Rehana’s Cosmetics, a Midtown Manhattan perfume and cosmetics store, said the District Attorney Alvin Bragg during a press conference.

About $212,000 worth of merchandise was stolen from Macy’s, while the rest came from CVSHelp with rites, Walgreens and Duane Reade, owned by Walgreens, Ulta, Victoria’s Secret, Bath and body work and the NHL store, Bragg said.

“Through our investigation, we discovered that Rehana’s Cosmetics was well known to shoplifters, who willingly brought them stolen items,” Bragg said. “We allege that this created a motive for shoplifters to steal, and therefore the defendants, we believe, were felony drivers.”

Rehana’s Cosmetics, according to Bragg, claimed to be a “beauty and perfume store,” but it turned out to have hundreds of boxes filled with products not typically found in such stores, including designer handbags, over-the-counter medications, kitchenware and much more. . He said the defendants obtained the stolen items from shoplifters with the intention of reselling them.

“The root cause we allege here is greed,” Bragg said. “They were doing this to make money. It’s a motive as old as time.”

The fees come from the fact that retailers such as Target and Ulta increasingly cite theft as a growing problem in their stores. In March, a month-long CNBC investigation showed how police dismantled an organized retail ring that was stealing millions of cosmetic products from Ulta stores and reselling them over the Internet. Amazon.

Although Bragg was unable to give a precise figure when asked how many stores engaged in similar operations, he noted that there had been “far too many assaults” on employees. stores that had been victims of theft.

“Using a multi-pronged prosecution strategy, we can make a lasting dent in retail theft that will keep our store employees safe, remove incentives for theft and resale of stolen goods and will enable our retail sector to thrive,” he said.

In a statement to CNBC, a Macy’s spokesperson said, “We appreciate the work of law enforcement and the Manhattan District Attorney’s Office and will forward any comments on the matter to them.”

A CVS spokesperson said the pharmacy was “grateful” for the work of the Manhattan district attorney’s office.

“Our partnerships with law enforcement are an integral part of our efforts to prevent organized retail crime (ORC) networks from stealing and then selling stolen goods online. We look forward to continuing our strong partnership with the District Attorney’s Office as we work to combat ORC across New York State.” City,” the spokesperson said.

A Walgreens spokesperson told CNBC earlier this year that the chain was taking steps to “safely deter theft” and “provide the best experience for patients and customers.”

Other retailers accused of stealing the goods included in the seizure did not immediately respond to CNBC’s request for comment.