One of the ringleaders in an organized national retail theft operation that recruited young women to steal nearly $8 million worth of makeup and beauty products is now serving jail time.
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Last month Michelle and Kenneth Mack, a California couple, plead guilty to several counts of grand theft and conspiracy for their illegal operation. In San Diego County Superior Court Thursday, Kenneth Mack was sentenced to five years and four months in prison. He is already incarcerated. As part of his plea deal, he will be released after a year and he will then be put on probation and community service for the remainder of his sentence.
Michelle Mack’s sentencing has been delayed until Jan. 9 so that she can care for the couple’s children, whose ages were not revealed.
An attorney for Kenneth Mack did not respond immediately to a media request Friday. Michelle Mack could not be reached for comment.
From late December 2021 to mid-October 2023, the Macks and several others unlawfully conspired to commit organized retail theft from more than 200 Ulta store s, as well as goods from Sephora . The operation was dubbed the “California Girls” by investigators. The couple recruited young women including some from lower-income neighborhoods to steal from Ulta and Sephora stores, and the ringleader resold the merchandise for a fraction of its retail price in an Amazon storefront, according to the indictment. The “boosters” were caught stealing on surveillance cameras, and in some instances committing bulk theft.
After investigators searched the Macks’ 4,500-square-foot residence in Bonsall, Calif., large amounts of makeup were found stored, organized and prepared for shipping, still intact in the manufacturers’ packaging. The couple are now required to pay more than $300,000 in restitution to Ulta and Sephora, according to a spokesperson for California attorney general Rob Bonta. There had never been an organized retail theft operation of this magnitude before in the area.
The investigation was conducted by the California Department of Justice, California Highway Patrol, the U.S. Department of Homeland Security, the U.S. Postal Inspection Service along with Ulta’s loss prevention organized retail crime team and Sephora representatives. Ulta and Sephora retailers assisted in conducting inventory of recovered product that had an estimated value of $400,000. The nationwide loss due to this widespread theft operation, which spanned 21 counties, was estimated to be more than $7.8 million.
In an issued statement, Ulta Beauty ’s senior vice president of loss prevention Dan Petrousek said, “This case demonstrates that through close partnerships between retailers, law enforcement and prosecutors, we can make a meaningful impact on organized retail crime and hold the criminals perpetuating this problem accountable. We are grateful to the California Department of Justice for their continued dedication to this issue.”
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A media request to Sephora was not immediately returned Friday afternoon.
Amazon declined an interview request Friday. A company spokesperson issued a statement saying that Amazon has “zero tolerance” for the sale of stolen goods, and it invests upward of $1 billion and employs “thousands” of people to protect from fraud and other areas of abuse.
The statement also read, “When we identify an issue, we work closely with law enforcement, retailers and brands to stop bad actors and hold them accountable, including withholding funds, terminating accounts and making law enforcement referrals. Our teams of experienced cybercrime attorneys and investigators have referred thousands of ORC [Organized Retail Crime] bad actors to law enforcement who are responsible for significant losses across the retail industry. These referrals have resulted in arrests, product seizures and recoveries, and the dismantling of ORC networks in the U.S. and around the world.“
The Macks’ four-bedroom, five-bathroom home outside of San Diego is currently listed online for $2.7 million. The 3.2-acre property includes a vineyard with 1,600-plus vines, a swimming pool, a four-car garage, stone bridges and a stone chapel/reflection room with stained glass windows and hand-carved Indian Temple doors. There is also a gourmet kitchen and “The Winery” — a cellar with a 300-year-old Sicilian tile crest that is equipped to store 1,800 bottles and oak barrels. A media request to the real estate agent representing the property inquiring whether the Macks’ legal problems have impacted interest or the asking price was not immediately returned Friday.
As is the case with other major cities, organized retail theft is an increasing concern for many businesses and legislators. A ballot measure that would make reforms to Prop 47 with new penalties for repeat shoplifters and penalties for fentanyl dealers was announced by Gov. Gavin Newsom’s office earlier this month. It was reportedly put together as an alternative to a more punitive initiative that was created by a coalition of retailers and law enforcement officials that would result in jail time for repeat shoplifting offenders.
Under both proposals, repeat shoplifting offenders would face felony charges. However, the retailers’ initiative would result in a three-strike policy and increased sentences regardless of when the convictions occurred. The legislators’ proposal would lead to tougher punishment if the repeat offenders struck within a three-year span, allowing police to aggregate the value of the stolen goods.
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