Inside the organized crime rings plaguing Ulta, T.J. Maxx, Walgreens and other retailers

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Inside the organized crime rings plaguing Ulta, T.J. Maxx, Walgreens and other retailers
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Scott Zamost is a senior investigative producer for CNBC.

In a tony suburban enclave in the San Diego foothills, police say, an organized retail crime “queenpin” had built an empire. Tucked behind the stone walls of her 4,500-square-foot Spanish-style mansion, Michelle Mack had stockpiled a small fortune in cosmetics that had been stolen from Ulta and Sephora stores across the country, authorities said. Police don’t suspect that Mack, 53, took the items herself.

saw takedowns of alleged organized theft groups that police said were reselling stolen merchandise at flea markets. Mack’s group, from her alleged network of professional thieves to her lucrative Amazon marketplace, was by far the most sophisticated one in a rare sit-down interview. “It also impacts the communities in which we live,” he said. “If people don’t feel safe going in to shop in certain areas of a community, it really has an impact and can change neighborhoods and change communities over time.” The government response to the issue has grown in turn.

the group had hit stores in multiple counties in an effort to evade detection. “They are not catching on that some of the retailers have their own loss prevention personnel and typically, if you target one store in San Jose, then the word gets out and then the next store is notified,” said Nevarez.

it will not resell the recovered merchandise. If TJX considers the items to be in suitable condition, it will donate them to charities in the area where they were found, the company said. If it deems the products unsuitable, it will work to dispose of them “responsibly,” it said. San Diego When Donna Washburn started shopping for a Christmas gift for her daughter in December, she wanted to “splurge” and buy her a bottle of Nars foundation.

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Inside the organized crime rings plaguing retailers including Ulta, T.J. Maxx and WalgreensInside the organized crime rings plaguing retailers including Ulta, T.J. Maxx and WalgreensScott Zamost is a senior investigative producer for CNBC.
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