Investigators just nabbed an $8 million retail theft ring that has targeted over 200 Ulta Beauty stores across the nation, as well as other retailers such as Sephora and LensCrafters, and the ringleader behind the alleged robberies was apparently a wealthy mother of three.
Michelle Mack, who lives in a $2.75 million, 4,500-square-foot mansion in California with her husband Kenneth, allegedly paid for hotels, car rentals and airfares for about 12 women to travel across the country to steal $8 million worth of makeup and other goods from retailers between 2021 and 2023. She would then collect the goods and sell them online to customers, making her millions of dollars, according to a report from NBC San Diego.
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Investigators found $300,000 worth of stolen goods in Mack’s home after they were issued a search warrant in December.
"This is a multimillion-dollar criminal scheme. It was complex. It was orchestrated," said California Attorney General Rob Bonta in February while announcing the charges. "We are not talking about garden-variety shoplifting."
Mack, her husband, and seven other members that allegedly were part of the crime ring face 140 felony charges which include grand theft, organized retail theft and receipt of stolen property.
All of the defendants have pleaded not guilty.
In a recent interview with CNBC, Ulta CEO Dave Kimbell claims that he isn’t shocked by Mack’s theft ring which targeted hundreds of his stores.
“Unfortunately, I’m not that shocked because we’ve seen it in other parts of the country,” said Kimbell. “The magnitude of this one is significant. But this is what’s happening, and this is the environment in which we’re operating.”
Retail theft is a growing problem across the country that has resulted in industry losses of about $112 billion in 2022, according to the National Retail Federation.
In May last year, Ulta announced that in response to the uptick in retail theft in its stores, it was aiming to lock up high-end fragrances in cabinets in 70% of its stores by the end of 2023.
“While shrink is the result of various factors, theft, specifically organized retail crime, or ORC, is an increasingly concerning challenge, especially as we've seen a rise in violence and aggression during these incidents,” said Kimbell during an earnings call in May.
