It’s not your average shoplifting infraction. Retailers around the country report that they are losing tens of billions of dollars a year to organized retail crime.
“It’s like a wildfire burning out of control with no easy way to stop it,” said Burt Flickinger, managing director of Strategic Resource Group and a top consultant in retail. “The communities want the criminals to have consequences and be arrested.”
But in many cases, that’s not what’s happening.
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“Either New York state or California, a person can steal up to $949 per person per store per day with no criminal consequences, no arrest, no jail time, basically a parking ticket,” Flickinger said.
People in the organized retail crime business are very aware of the threshold between petty and grand larceny. In California, petty theft is under $950 in stolen goods. In New York, it’s under $1,000.
Serial offender Michelle McKelley has been arrested more than 100 times, according to the New York Post. Often, she’s released without bail. The Post caught up with her outside of court.
“I have to go to work,” she said. “I don’t call it stealing… I’m a professional booster.”
How organized retail crime rings work
“Boosters” are the ones who steal the merchandise, sometimes hitting several stores a day. Then “fences” buy the product off boosters for a fraction of the retail price before turning around and selling to the public. Fences range in sophistication from low-level street resale at swap meets to e-fencing on Amazon and eBay.
Last year, New York’s Office of the Attorney General announced the takedown of a retail theft crime ring following a 3-year investigation. The investigation tied more than $3.8 million in stolen goods to Queens ringleader Roni Rubinov and 40 accomplices.
“Rubinov trained these employees to procure and directed the boosters to steal specific items from retailers based on sale trends from his eBay storefront,” New York Attorney General Letitia James said.
Rubinov also owned and operated pawnshops in Midtown Manhattan.
“This is just not shoplifting. This is organized crime attempting to exploit our merchants and our city,” New York City Mayor Eric Adams said.
Revolving door of crime
Despite this crackdown, Adams and the NYPD said the city’s criminal justice system is a revolving door of no consequences. In a press conference last year, they highlighted the city’s top 10 repeat offenders, including this one they called “Recidivist No. 1.”
“He’s hit one location 20 times, the same location 20 times,” NYPD Chief of Crime Control Strategies Mike Lipetri said. “And again, we’re talking about arrests here. We’ve arrested that individual 100 times. How many crimes do you think he really committed? Two hundred? Three hundred? A thousand?”
New York doesn’t even top the list. It ranks fourth among the top cities facing organized retail crime, according to the National Retail Federation.
Top cities affected by organized retail crime
| 1 | Los Angeles |
| 2 | San Francisco/Oakland |
| 3 | Houston |
| 4 | New York |
| 5 | Seattle |
| 6 | Atlanta |
| 7 (tied) | Sacramento, Chicago |
| 9 (tied) | Denver, Miami, Albuquerque |
In Seattle, a city audit said police are aware of at least four major fencing operations where they sell stolen goods online, but police staffing constraints are hurting their ability to investigate and pursue, forcing them to prioritize violent crimes over organized retail crime.
“One of the New York City retail leaders told me it’s only 900 people who are committing these crimes. It’s the same 900 people now, and it might have been 500 or 600 people before the pandemic,” Flickinger said. “But it’s not a lot of people with the right cooperation to take corrective action and identify constructive solutions.”
What do those solutions look like? Download the SAN app and enable notifications so you don’t miss part 3 of the organized retail crime series. Catch up on part 1 here.
Simone Del Rosario: These aren’t your average shoplifters.Retailers say they’re losing tens of billions of dollars a year to organized retail crime.
Burt Flickinger: It’s like a wildfire burning out of control with no easy way to stop it.
Simone Del Rosario: Burt Flickinger is a top consultant in retail and leading industry expert.
Burt Flickinger: The communities want the criminals to have consequences and be arrested.
Simone Del Rosario: But in many cases, that’s not what’s happening.
Burt Flickinger: Either New York State or California, a person can steal up to $949 per person per store per day with no criminal consequences, no arrest, no jail time, basically a parking ticket.
Michelle McKelley: Under $1,000 is considered petty larceny. Anything that’s over $1,000 is called, is considered grand larceny.
Simone Del Rosario: Michelle McKelley’s been arrested more than 100 times, according to the NY Post. Often, she’s released without bail.
Michelle McKelley: So I have to go work. Work is stealing. I don’t call it stealing. I call it professional, I’m a professional booster.
Simone Del Rosario: Boosters are the ones who steal the merch. Then fences buy the merch off boosters at a fraction of the retail price. Fences range in sophistication, from low-level street resale like swap meets to e-fencing on Amazon and eBay.
New York Attorney General Letitia James: Rubinov trained these employees to procure and directed the boosters to steal specific items from retailers based on sale trends from his eBay storefront.
Simone Del Rosario: Last year, New York’s Office of the Attorney General announced the takedown of a retail theft crime ring. Tying $3.8 million in stolen goods to Queens ringleader Roni Rubinov and 40 accomplices. Rubinov also owned pawnshops in Midtown.
New York City Mayor Eric Adams: This is just not shoplifting. This is organized crime attempting to exploit our merchants and our city.
Simone Del Rosario: Despite this crackdown, the mayor and NYPD say the city’s criminal justice system is a revolving door of no consequences. Here they highlight just one repeat offender.
NYPD Chief of Crime Control Strategies Mike Lipetri: He’s hit one location 20 times. The same location 20 times. And again, we’re talking about arrests here. We’ve arrested that individual 100 times. How many crimes do you think he really committed? 200? 300? 1,000?
Simone Del Rosario: And New York doesn’t even top the list. Here are the top cities facing organized retail crime, according to the National Retail Federation. In Seattle, a city audit said police are aware of at least four major fencing operations where they sell stolen goods online. But police staffing constraints are hurting their ability to investigate and pursue, forced to prioritize violent crimes over organized retail crime.
Burt Flickinger: One of the New York City retail leaders told me it’s only 900 people who are committing these crimes. It’s the same 900 people now, and it might have been 500 or 600 people before the pandemic. But it’s not a lot of people with the right cooperation to take corrective action and identify constructive solutions.
Simone Del Rosario: What do those solutions look like? Download the SAN app and enable notifications so you don’t miss part 3 of our organized retail crime series out soon. And search “organized retail crime” to catch up on part 1.
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