Organized theft ring targeting Macy’s faces charges in New York

A New York beauty store a few blocks from the Empire State Building resold more than $1 million worth of stolen merchandise. Macy’s Officials announced Wednesday that they also included a number of other retailers.

Two New Yorkers are accused of possessing and reselling more than $1 million in stolen property through their business, Rehana’s Cosmetics, a perfume and cosmetics store in Midtown Manhattan, District Attorney Alvin Bragg said at a press conference. He said he had been indicted.

Approximately $212,000 of the merchandise was stolen from Macy’s; CVSRite Aid, walgreens and Duane Reade, owned by Walgreens. Ulta, victoria’s secret, Bath & Body Works and the NHL Shop, Bragg said.

“Our investigation revealed that Rihana’s Cosmetics is well known to shoplifters who are willing to bring stolen goods to us,” Bragg said. “We argue that this created the motive for the shoplifters to steal and that the defendants were therefore the promoters of the crime.”

Bragg claims that Rehana’s Cosmetics claimed to be a “beauty and perfume store,” but instead sold products not normally sold in such stores, such as designer purses, over-the-counter medicines and kitchenware. It turned out there were hundreds of boxes filled with missing items. He said the defendants obtained stolen goods from shoplifters for resale.

“The root cause we’re alleging here is greed,” Bragg said. “They were doing this to make money. This is an old motive.”

Charges are incurred by retailers such as: the goal And Ulta is increasingly citing theft as a growing problem in its stores. In March, a month-long CNBC investigation revealed how police took down an organized retail crime syndicate that stole millions of dollars in cosmetics from Ulta stores and resold them. Ta. Amazon.

When asked how many stores were believed to have engaged in similar behavior, Bragg did not provide a specific number, but said the stores where the thefts occurred “have far too many assaults” against employees. he pointed out.

“Using a multi-pronged prosecution strategy can put a lasting halt to retail theft, keeping store employees safe, cutting off incentives to steal and resell stolen goods, and “We can enable the industry to thrive.”

“We appreciate the efforts of law enforcement and the Manhattan District Attorney’s Office and will defer to them for comment regarding this incident,” a Macy’s spokesperson said in a statement to CNBC.

A CVS spokesperson said the pharmacy is “grateful” for the work of the Manhattan District Attorney’s Office.

“Our law enforcement partnerships are essential to our efforts to stop retail organized crime (ORC) organizations from stealing and selling stolen goods online. We look forward to continuing our strong partnership with the National Police Agency as we work to combat the “City,” a spokesperson said.

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

Other retailers whose busts allegedly contained stolen items did not immediately respond to CNBC’s requests for comment.