Investigators just busted an $8 million retail theft ring that has targeted more than 200 Ulta Beauty stores nationwide, as well as other retailers like Sephora and LensCrafters, and the ringleader behind the alleged thefts was apparently a wealthy mother of three children.
Michelle Mack, who lives in a 4,500-square-foot, $2.75 million California mansion with her husband Kenneth, allegedly paid for hotels, car rentals and airfare for about 12 women to travel across the country to steal $8 million. of dollars in makeup and other items. she products from retailers between 2021 and 2023. She would then collect the products and sell them online to customers, making her millions of dollars, according to a report from NBC San Diego.
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Investigators found $300,000 worth of stolen property in Mack's home after a search warrant was issued to them in December.
“This is a multibillion-dollar criminal scheme. It was complex. It was orchestrated,” California Attorney General Rob Bonta said in February, while announcing the charges. “We are not talking about common thefts.”
Mack, her husband and seven other members who were allegedly part of the criminal network face a 140 felony charge. charges including grand theft, organized retail theft and receiving stolen property.
All of the accused have pleaded not guilty.
In a recent interview On CNBC, Ulta CEO Dave Kimbell says he's not surprised by Mack's theft ring that targeted hundreds of its stores.
“Unfortunately, I'm not that surprised because we've seen it in other parts of the country,” Kimbell said. “The magnitude of this is significant. But this is what is happening and this is the environment in which we operate.”
Retail theft is a growing problem nationwide that has caused the industry to lose about $112 billion in 2022, according to the National Retail Federation.
In May of last year, Ulta Announced which, in response to increased theft in its stores, aimed to lock up high-end fragrances in the cabinets of 70% of its stores by the end of 2023.
“While shrink is the result of several factors, theft, specifically organized retail crime (ORC), is an increasingly concerning challenge, especially as we have seen an increase in violence and aggression during these incidents,” Kimbell said during an earnings call. call In May.
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