- A 54-year-old Michelle Mack has been sentenced to five years in prison for leading an organized retail crime ring targeting Ulta and Sephora Beauty products. She allegedly hired several women to steal beauty products, which she then sold on Amazon.
While crime has generally been trending downward to pre-2019 levels, one type has unfortunately bucked the trend: retail theft. During the first half of 2024, shoplifting was up 24% over the same time period as 2023, according to the Council on Criminal Justice.
One extreme case was a shoplifting scheme in which a 54-year-old woman organized a retail crime ring across 21 California counties. On Friday, the ringleader, Michelle Mack, was sentenced to five years and four months in prison for her involvement in an estimated $8 million worth of stolen beauty products, according to the California Department of Justice.
Mack and her husband, Kenneth, allegedly recruited several young women to steal high-demand makeup products from Ulta and Sephora, which she would then sell on her Amazon storefront for a fraction of the retail price. The theft suspects were caught on surveillance cameras, according to the California DOJ. A search of Mack’s “multi-million dollar” home in Bonsall, Calif., revealed large amounts of makeup product stored, organized, and prepped for shipping.
“Not only does organized retail crime jeopardize the safety of our store associates and guests, but it also results in potentially unsafe or damaged products being resold online to consumers under false pretenses,” Dan Petrousek, senior vice president of loss prevention at Ulta Beauty, said in a statement.
The investigation, which was conducted by the California DOJ, California Highway Patrol, Department of Homeland Security, and U.S. Postal Inspection Service, was first announced in February 2024. DHS and USPIS did not respond to Fortune’s request for comment about the case.
“Together, our teams have demonstrated that organized retail crime in California will not be tolerated, and those who engage in these crimes will be held accountable to the fullest extent of the law," California Highway Patrol Commissioner Sean Duryee told Fortune in a statement.
Mack was charged with organized retail theft, conspiracy, receipt of stolen property, and multiple counts of grand theft.
“Organized retail crime has significant financial and safety implications for businesses, retailers, and consumers,” California Attorney General Rob Bonta said in a statement. “Today, we are addressing an audacious instance of organized retail theft and making it clear that such criminal activity will not be accepted in California. The attorney general’s office declined to provide further comment to Fortune.
Ulta’s Loss Prevention Organized Retail Crime team and Sephora representatives also helped conduct the investigation.
“This case demonstrates that through close partnerships between retailers, law enforcement and prosecutors, as well as legislative support, we can make a meaningful impact on organized retail crime and hold the criminals perpetuating this problem accountable," Petrousek said in a statement to Fortune.
Sephora did not respond to Fortune's request for comment.
The thefts occurred at Ulta and Sephora stores in Alameda, Placer, Kern, Contra Costa, Orange, Los Angeles, Santa Clara, San Diego, Sacramento, San Mateo, Solano, Riverside, San Joaquin, Stanislaus, Napa, Marin, Tulare, San Bernardino, Sonoma, Ventura, and Yolo counties, according to the California DOJ.
“This sentencing is a win for businesses, retailers, and consumers in the fight against organized retail crime in California,” Bonta said in a statement. “The robust collaboration among law enforcement, prosecutors, and retailers serves as the cornerstone in the battle against organized retail crime which has significant financial and safety implications.”
Mack has also been ordered to pay $3 million in restitution, and the Macks have forfeited all property and assets—including their home—which has been sold and will be used to pay out victim restitution, according to the DOJ.
