Organized theft ring targeting Macy's charged in New York

A New York beauty store, just blocks from the Empire State Building, resold more than a million dollars worth of goods that had been stolen Macy's and many other retailers, officials said Wednesday.

Two New Yorkers were charged with possessing more than $1 million in stolen goods and reselling them through their business, Rehana's Cosmetics, a perfume and cosmetics store in Midtown Manhattan, the district's District Attorney Alvin Bragg said in a press conference.

Approximately $212,000 of the merchandise was stolen from Macy's, while the rest came from CVSHelp ritual, Walgreens and Duane Reade, owned by Walgreens, Ulta, Victoria's secret, Bath and body work and the NHL Shop, Bragg said.

“Through our investigation, we discovered that Rehana's Cosmetics was well known to thieves, who willingly brought them stolen items,” Bragg said. “We allege that that created a motive for the thieves to steal and therefore that the defendants, we allege, were drivers of the crime.”

Rehana's Cosmetics, Bragg alleged, claimed to be a “perfume and beauty store” but was instead found to have hundreds of boxes filled with products not typically found in such stores, including designer handbags, over-the-counter medications, kitchen utensils. cooking and more. . He said the defendants obtained the stolen items from thieves for the purpose of reselling them.

“The root cause we allege here is greed,” Bragg said. “They did this to make money. This is the reason that is as old as time.”

The charges arise when retailers such as Aim and Ulta increasingly cite theft as a growing problem in their stores. In March, a month-long CNBC investigation showed how police broke up an organized crime ring that stole millions in cosmetics from Ulta stores and resold them in Amazon.

While Bragg couldn't give a specific number when asked how many stores are believed to be involved in similar operations, he noted that there have been “too many assaults” on employees at stores that have been robbed.

“By using a multi-pronged prosecution strategy, we can make a lasting dent in retail theft that will keep our store employees safe, eliminate incentives to steal and resell stolen goods, and allow our retail sector to thrive,” he said.

In a statement to CNBC, a Macy's spokesperson said: “We appreciate the work of law enforcement and the Manhattan District Attorney's Office and forward any comments on the case to them.”

A CVS spokesperson said the pharmacy is “grateful” for the work of the Manhattan district attorney's office.

“Our partnerships with law enforcement are integral to our efforts to prevent organized retail crime (ORC) networks from stealing and then selling stolen goods online. We look forward to continuing our strong partnership with the District Attorney's Office as we work to combat ORC throughout New York City,” the spokesperson said.

A Walgreens spokesperson told CNBC earlier this year that the chain is taking steps to “safely deter theft” and “deliver the best patient and customer experience.”

The other retailers alleged to have stolen goods included in the raid did not immediately respond to CNBC's request for comment.