Andrei Popov
Manhattan authorities have cracked down on a local cosmetics retailer for allegedly running a retail theft fencing operation, charging him and his owners with three counts of criminal possession of stolen property.
Investigators raided the store and two of it storage units, and found more than $1 million worth of stolen merchandise from shoplifters, which the store allegedly intended to resell.
The investigation into Rihanna's cosmetics was conducted in collaboration with Macy's (New York Stock Exchange: M), Ulta Beauty (Nasdaq: Ulta),CVS(New York Stock Exchange: CVS), Walgreens (Nasdaq: WBA) and Rite Aid (OTC:RADCQ).
Among the stolen property, $212,000 worth of merchandise was stolen from Macy's (M) alone. The rest were from CVS (CVS), Rite Aid (OTC: RADCQ), Walgreens (WBA), Duane Reade, Ulta (ULTA), Victoria's Secret, and Bath & Body Works (New York Stock Exchange: BBWI), and the NHL Store.
“We must use every tool in our toolbox to address the root causes of retail theft, and an important part of that is initial and proactive investigations with those who stand to benefit.” He said Manhattan District Attorney Alvin Bragg.
“Through our investigation, we found that Rihanna’s cosmetics were known to the thieves, who willingly brought them the stolen items. We allege that this created a motive for the thieves to steal, and therefore the defendants, we allege, were drivers of the crime,” he added.
US retailers have faced a rise in theft rates at their brick-and-mortar stores, a factor that many blamed for a decline in profits last year. However, the Brennan Center for Justice recently said that evidence of an increase in organized retail theft is weak. “…some cities, including New York, face historically high levels of theft,” but retail theft data tends to be flat Unreliable.