Mexican cartels drive retail theft surge.
Mexican Cartels Expanding Global Criminal Empires with Organized Retail Crime
Mexican cartels are not only involved in human smuggling and the fentanyl epidemic but have also expanded their criminal operations to include organized retail crime. These cartels are targeting big-box stores, luxury retail brands, and small businesses, stealing goods and selling them online. To launder the profits, they are using Chinese brokers.
A Growing Enterprise
According to Eric DeLaune, special agent in charge at the Department of Homeland Security’s Homeland Security Investigations, organized retail crime is a $70 billion a year enterprise. These theft rings are not just shoplifters but part of a larger criminal network that has infiltrated every state.
“In contrast to shoplifters, organized theft groups engage in large-scale thefts which rely on teams of ‘boosters’ who steal goods from major retail stores, ’cleaners’ who disguise the origins of stolen merchandise, ‘fencers’ who resell products through brick-and-mortar fronts and major e-commerce websites, and professional money launderers who funnel illicit profits to criminals orchestrating schemes,” HSI wrote in a June press release.
Similar to how Mexican cartels use Chinese brokers to funnel fentanyl profits back to Mexico, the cartels involved in retail crime send their money back to Mexico through the same Chinese money launderers.
A Rise in Organized Retail Crime
Since the pandemic, organized retail crime has seen a significant increase. This rise coincided with coronavirus lockdowns, rioting, and looting following the George Floyd protests, as well as lenient punishments for crimes like theft in some liberal cities. The National Retail Federation reported a 26.5% increase in organized retail crime incidents between 2020 and 2021.
Arkansas Attorney General Tim Griffin highlighted that the issue affects both Fortune 500 companies and small businesses in small towns. He emphasized the need to address the cultural acceptance of criminal activity.
“Let me tell you the difficult thing to change and establish, and that is culture,” Griffin said during a press conference. “It’s all over the country but particularly in some of our cities — when you have a culture that you can violate the law, steal, burglarize, do whatever you want and the feds and the state and everybody else will just sit around and watch, you’ve got a problem. And it goes way, way beyond organized retail crime.”
The Impact and Call for Action
Organized theft groups have become more brazen, committing thefts in broad daylight and resorting to violence against customers and employees who try to stop them. Videos of employees being assaulted or killed by thieves have gone viral, raising concerns among consumers.
The National Retail Federation survey found that nearly two-thirds of consumers are worried about gang-led shoplifting in their communities, with 75% of consumers in cities expressing concern.
The impact of organized retail crime extends beyond the loss of tax revenue. It affects jobs and limits choices in communities. Sen. Chuck Grassley proposed the Combating Organized Retail Crime Act to address this issue, but the bill has yet to gain traction in Washington.
However, there is public support for action against these criminals. Consumers believe that prosecutors, law enforcement, and the courts are too lenient on those who steal from stores.
A Line in the Sand
The recent partnership between HSI, U.S. attorneys, and industry leaders from Albertsons, Home Depot, and Walmart aims to combat organized retail crime. Arkansas Attorney General Tim Griffin sees this partnership as a clear message to criminals that they will be pursued no matter where they are.
“What this says is we’re going to come after you no matter where you are,” Griffin said.
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