WASHINGTON—Yesterday’s announcement by federal and local authorities of the takedown of a nationally organized retail crime ring in San Jose, Calif., highlights a significant and growing criminal enterprise in the United States and the need for federal legislation to combat it, the Retail Industry Leaders Association said.
San Jose police, along with the IRS and FBI announced more than a dozen arrests, seizing massive quantities of cash and stolen retail merchandise; concluding a two and one-half year multi-agency criminal investigation in the South Bay Area.
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“Organized retail crime threatens the safety of American citizens,” said Paul Jones, RILA’s vice president of asset protection. “The products that are stolen and sold as a result of ORC are often unsafe and threaten the well being of consumers.”
Organized retail crime rings have been linked to larger organized crime organizations, including the Gambino crime family and MS13.
The suspects identified in the San Jose case are suspected of buying massive quantities of stolen merchandise from shoplifting “booster” teams and selling the discounted items, which included teeth whiteners, razor blades and over-the counter drugs, in San Jose and throughout the United States.
At a press conference, San Jose police displayed and distributed a video of local San Jose storefronts operating as “shadow supermarkets.” Stolen merchandise, along with suspects’ photographs, were on display at the conference. Several retailers, including Safeway and Walgreens, cooperated in the investigation.
“Without a federal law targeting this kind of criminal enterprise, these crimes will continue to occur and unwitting consumers will remain at risk,” added Jones.
