On Friday, Democratic California Attorney General Rob Bonta held a press conference about the takedown of an organized retail crime scheme.
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00:00Good morning, everyone. Thank you for being here. I am Rob Bonta, California Attorney General, and I want to say thank you for joining us.
00:10We're here today to announce the arrest of three suspects for stealing personal identifying information to open credit lines, then maxing out those credit lines.
00:23Their fraudulent scheme involving identity theft resulted in a loss of over $100,000 worth of merchandise from several retailers across California, high-end jewelry stores predominantly, as well as Harbor Freight.
00:40And as a result, my office is charging these three individuals with 34 counts of organized retail theft, grand theft, and identity theft.
00:53That's one count of organized retail theft. We have 20 counts of grand theft and 13 of identity theft.
01:00And before we dive in, I want to thank our law enforcement partners, who we couldn't do this work without.
01:08This was very much a collaborative effort, an effort of partnership and sharing information and working together hand-in-hand.
01:15I want to thank the Department of Homeland Security.
01:17I want to thank the California Highway Patrol and also thank the Los Angeles County Sheriff's Department.
01:23You'll be hearing from Chief Mendoza at the Sheriff's Department shortly.
01:26I'd also like to thank my colleagues at California DOJ, in particular our Organized Retail Criminal Enterprises Program, the ORCE, which was started back in 2021.
01:38I also want to thank our special prosecution section, who will be prosecuting the case.
01:44Our Organized Retail Criminal Enterprises Program, housed within the California DOJ, with a lot of great partnership,
01:51that program led the investigation and the arrest, and our special prosecution section within the California DOJ will be prosecuting the case.
02:01And it's because of our combined efforts that we're here today.
02:05We wouldn't be here without the collaboration and the partnership.
02:08Our message to those involved in these crimes is unwavering.
02:12If you are engaged in organized retail crime, if you go after our businesses and steal from them, if you steal the identities of fellow Californians,
02:22if you try to make an easy buck off of other people's hard work, we will come for you.
02:29And this is yet another example of that fact.
02:33After a thorough investigation, my office found that over the course of about five months in 2023,
02:41the three suspects involved in this case had allegedly purchased multiple pieces of jewelry from several retailers throughout the state
02:49using credit accounts they illegally opened after stealing identities from 13 individuals.
02:58They would steal the identities.
02:59They would present themselves in these high-end jewelry stores as these other individuals.
03:05They'd open up a credit line in the store with their false name, the stolen identity,
03:10and then they would proceed to max out the credit line purchasing high-end jewelry from these stores.
03:18The stolen personal identifying information included driver's license numbers, passport numbers,
03:24and A numbers, alien registration numbers.
03:30The suspects posing as these individuals used these illegally obtained documents to open the lines of credit
03:35at the high-end jewelry stores and harbor freight stores and make the expensive purchases, as I mentioned.
03:41Their fraudulent scheme was organized.
03:44They worked in concert, in tandem, stealing multiple Californians' identities
03:51and engaging in multiple crimes across multiple counties,
03:56specifically seven counties, both in Southern California and in the Bay Area.
04:02They engaged in these crimes in Los Angeles County, in Orange County, in Riverside County, in San Bernardino County,
04:09in Alameda County, San Mateo County, and Santa Clara County.
04:13So seven counties.
04:14But their operation didn't stop there.
04:17They also committed these crimes in Nevada, Utah, and Arizona.
04:22Of course, those are other jurisdictions besides ours,
04:25and law enforcement authorities in those states are involved in those cases.
04:30All told, the loss for the impacted retailers,
04:33when you include the thefts in the other states,
04:37totaled over $300,000, all told, across the multiple states.
04:40In California, again, over $100,000.
04:43Today's charges should serve as yet another warning
04:48to those involved in organized retail crime in California.
04:52There will be consequences.
04:55Here, a 34-count indictment, all felonies,
05:00exposure to the suspects ranging from six years at the lowest to 14 at the highest.
05:06We are completely focused on these criminal schemes.
05:10We are working with resources and commitment and priority within our office,
05:16working with our law enforcement partners across the state,
05:19working with businesses who have been impacted,
05:22listening to what's happening in their stores and following up when they reach out to us.
05:27Whether it's stealing hundreds of thousands or millions of dollars of merchandise,
05:31all while stealing other people's identities,
05:33operations like the ones we're discussing today,
05:37they disrupt our economy.
05:39They endanger the public.
05:41Across California, business owners, workers, and families are worried
05:45about organized retail crime.
05:49And I hear them when they say it's one of their top concerns.
05:53As California's Chief Law Enforcement Officer,
05:57I'm here to make sure our state remains the best place to live,
06:00to work, to raise a family, and, yes, to run a business.
06:04That includes going after organized retail crime, as today is yet another example.
06:08I'll continue to marshal the resources, the expertise,
06:11and intelligence of California DOJ to put a stop to these malicious crimes.
06:17Organized retail crime will not be tolerated, not by businesses,
06:22not by law enforcement, not by me.
06:27Today, we're making that abundantly clear.
06:31Thank you again to our partners in this investigation.
06:33Again, we wouldn't be here without them.
06:36I'd also like to take a moment to thank my team,
06:39the folks within the California DOJ who worked up this case on the investigative side
06:43and will be prosecuting it,
06:45Ashley Lee, Mike Whitaker, Patricia Fusco, Anthony Brady,
06:52Rigoberto Garcia, Sok Kiyang, Ray Diaz, and Chief Stephen Woolery.
06:59Thank you to my team.
07:00Proud of the work that you've accomplished here and are continuing to do.
07:04Before we open it up for questions,
07:05I want to hand it over to Chief Joe Mendoza from the L.A. Sheriff's Department.
07:15Good morning.
07:21I want to begin by thanking everyone for being here
07:24and really bringing light to this incident.
07:27I'd like to thank the California Department of Justice,
07:30all of their investigative team,
07:32Attorney General Bonta for making this a priority in our state.
07:36I want to thank all our local, state, federal partners who collaborated
07:40to bring these three suspects to justice.
07:43I want to thank all the victims who reported the crimes
07:46because without those reports, we wouldn't be standing here today.
07:49I want to share a few details about the crime that we investigated
07:53on the Los Angeles County Sheriff's Department side,
07:56and it was investigated by investigator Brian Espinosa,
08:00who later shared some of these facts of the crime
08:04with the investigators from HSI.
08:10In September of 2023,
08:12our Fraud and Cybercrimes Bureau investigated a case
08:14where the suspect used identity theft
08:17using three victims to open fraudulent credit accounts.
08:21The fraudulent credit accounts were then repeatedly used by the suspect
08:24at different stores across the counties and other states.
08:28That total loss in our investigation was approximately $51,000.
08:34During the course of the investigation,
08:36it was discovered the suspects were committing similar retail thefts
08:40involving these crimes at other retail businesses.
08:43Because of the scope of the crimes,
08:45press spread across the jurisdictions.
08:48We worked with HSI, other law enforcement partners
08:52to further investigate and charge these suspects
08:55with the identity and grand thefts.
08:58Since this case began,
09:00our department has formed
09:01the Organized Retail Crime Task Force,
09:04and it operates out of major crimes.
09:06It was formed, actually, the day or the month
09:09that this investigation began in September of 2023.
09:14Our task force at the L.A. County Sheriff's Department,
09:17being run under major crimes,
09:18has, since that time,
09:20over 1,100 arrests,
09:22served over 900 search warrants,
09:24and successfully has filed over 750 criminal cases,
09:28recovering over $37.5 million worth of stolen property.
09:33Our department remains committed
09:35to combating organized retail crime
09:37through coordinated and multi-agency efforts,
09:40leveraging information sharing,
09:42targeted enforcement,
09:44and strategic partners
09:45to safeguard businesses and communities.
09:48With that being said,
09:50I believe that the most important element
09:51in disrupting these criminal networks
09:53is for the public and retailers
09:56to report identity theft,
09:59retail thefts,
10:00and where stolen goods are being sold,
10:02where they're being fenced in the communities,
10:04because that's where we can really put a dent
10:06by recovering and shutting down these networks.
10:09Fighting crime is a partnership,
10:10and we can't do it without the public's help.
10:13And if anyone has information in L.A. County,
10:16please contact L.A. County sheriffs,
10:18any of our 23 stations,
10:20our major crimes bureau,
10:21or crime stoppers,
10:22if you would like to remain anonymous.
10:25With that,
10:26once again,
10:26I want to thank all our partners
10:28in this great case,
10:31and thank you very much.
10:35Thank you, Chief.
10:36Again, I want to thank
10:37our law enforcement partners as well,
10:39L.A. Sheriff's Department,
10:40California Highway Patrol,
10:41Homeland Security.
10:44Together, we are able to accomplish things
10:46that we are not able to accomplish alone,
10:48and this is yet another example.
10:50So with great appreciation and respect,
10:53I say thank you,
10:54and I'm happy to open up
10:55to any questions you might have.
10:57Where were they selling the items?
11:00Selling the items?
11:02You have money for them, right?
11:03They have to sell them.
11:04So where were they?
11:05Were they using social media platforms?
11:07Were they?
11:09So first,
11:10the items were stolen
11:11from the seven counties,
11:12and we are still
11:14engaged in an ongoing investigation,
11:19but there's a high probability
11:20they were reselling
11:21the stolen items
11:23at pawn shops
11:24and getting cash for them.
11:25You kind of said it before,
11:30but what kind of jail time
11:31are they facing?
11:31And also,
11:33is there restitution?
11:35Sure.
11:36There are three suspects.
11:38Two of them are brothers.
11:39The brothers are facing,
11:41because of their criminal histories
11:43and their culpability
11:45in this organized retail criminal scheme,
11:4813 and 14 years of exposure,
11:52and the third individual faces six
11:54because of his unique history
11:57and his culpability
11:58and involvement in the case.
12:00Well, can you tell us
12:01about the suspects?
12:02Are they California residents
12:04or the undocumented?
12:06In order,
12:06what can you tell us?
12:08I believe that they're all
12:10American citizens
12:11from California,
12:13from Southern California.
12:15A couple of them had a prior
12:18involving stolen identity
12:21in the past
12:22that they,
12:24of course,
12:24when you have a prior,
12:25that means you were arrested
12:26and you were convicted
12:27and you served your time
12:30or whatever your punishment was.
12:33So that's what I can share.
12:35How long have you been
12:36on the list?
12:38Our involvement was
12:39about a five-month period
12:41between March and July of 2019.
12:452023
12:45is what our investigation
12:47revealed to us.
12:48And you mentioned this before,
12:51you said that
12:52from the victims
12:53before,
12:54that's how you guys
12:55were elected,
12:56correct?
12:59The victims were definitely
13:00a part of it.
13:01They have to be
13:01for the identity theft portion.
13:03and we need to ensure
13:04that they did not give permission
13:07for anyone else
13:08to use their identity
13:09or to present themselves
13:10as them.
13:12And so we do need
13:12a victim confirmation component
13:14for the charges
13:15that we're bringing.
13:16But the high-end jewelers,
13:20one of their representatives
13:21came forward
13:23and shared the scheme
13:24that they were
13:25being the victim of.
13:26And so we appreciated
13:28the partnership
13:29with the business community,
13:31with the high-end jeweler,
13:32to share with us
13:33what they were experiencing
13:34and to seek support
13:36from us
13:37as law enforcement.
13:39and that we have
13:41these ORCE,
13:43these Organized Retail
13:44Criminal Enterprises
13:46meetings
13:46with law enforcement
13:48partners across the state
13:49and business partners
13:50across the state retailers.
13:52And at one of them,
13:54the LA Sheriff's Department
13:55came forward
13:56and shared with us
13:57some information
13:58about thefts
14:01at Harbor Freight
14:02and that really helped us
14:04unlock the case.
14:05And so between
14:06the high-end jeweler,
14:08LA Sheriff's Department
14:09some of the information
14:10that we had access to,
14:12there was a lot of
14:12dot connecting
14:13that allowed us
14:15to break open this case
14:17and identify this trio
14:19involved in organized
14:20retail crime,
14:21arrest them,
14:22and hold them accountable.
14:23How is the high-end jeweler
14:24know that this is a few?
14:26Were they continually
14:26coming back to their store?
14:28Or how?
14:30How did they explain
14:30how whole that thing would be?
14:32Yeah, I mean,
14:33they were aware
14:35that people were coming
14:37into their store,
14:37these three suspects,
14:39that they were opening up
14:40credit lines
14:40under other IDs,
14:42maxing out the credit lines
14:44that their store provides,
14:46and then not paying them.
14:48So they were seeing
14:49the non-payments.
14:50They were seeing
14:50that there was something wrong
14:52and that they were being victimized
14:54and taken advantage of.
14:55So they shared it with us.
14:56I don't think they knew
14:57all of the details
14:58of the scheme,
14:59who and how,
15:00but they knew
15:01that there was
15:02multiple maxed-out
15:04store-backed credit cards,
15:06credit lines
15:07that were not being paid back.
15:10So how did the suspect
15:11contain the identity
15:13as the victim
15:14to the purchasing information
15:16from the dark web,
15:18steal the wire collecting?
15:20What can you tell us about that?
15:22We're still uncovering
15:25all the details
15:25for the different ways.
15:26I will say
15:27that there were
15:28multiple IDs presented.
15:31There was one example
15:32of a green card
15:34with an A number,
15:36an alien registration number
15:37that was permitted.
15:37That stood out
15:38amongst the jewelry stores
15:41because it was uncommon.
15:44There was also
15:45driver's licenses
15:47that were presented.
15:49So some of the details
15:51for how they stole
15:52the identities
15:53vary.
15:56but they ended up
15:58having different forms
15:59of identity
15:59that they presented
16:00in the stores.
16:02Are there any more
16:03arrests down the line
16:05finding out where
16:07they get from
16:07or other people involved?
16:10Not specifically.
16:11Although the investigation
16:12continues,
16:13there are still
16:14potential other victims
16:16that we may be able
16:18to get in touch with
16:19and could confirm
16:20that their identity
16:21was stolen.
16:21We'll see how that plays out.
16:23If the ongoing investigation
16:24reveals other suspects,
16:25we of course
16:27will hold them
16:29accountable as appropriate
16:30but right now
16:31we think we have
16:32the trio
16:33of individuals
16:34who are involved
16:35in this organized retail
16:36criminal enterprise.
16:38How were you able
16:39to apply them
16:40to the crimes
16:40in other states?
16:42Were they using
16:42the same fraudulent IDs
16:44or video?
16:49We were able
16:50to identify
16:51who the three individuals
16:52were.
16:53We engaged
16:54in surveillance
16:55and were able
16:57to get warrants
16:59based on that surveillance
17:01and identify
17:02and I think we have
17:04pictures here
17:05of some of the items
17:06that were stolen
17:08as well as
17:08the IDs
17:09and so we got
17:12a good sense broadly
17:13of where they were
17:14operating
17:15including the multiple
17:16counties.
17:18A lot of the
17:19thefts were
17:22part of the same
17:23line of high-end
17:25jewelry stores
17:25which operate
17:26in other states
17:27as well
17:28and so that helped
17:29us piece it
17:30together as well.
17:31This question
17:32is for both you
17:32and also
17:34Chief Mendoza.
17:36I know it's not
17:37germane to this
17:38particular case
17:39but I've talked
17:39to many detectives
17:41in different jurisdictions
17:42about retail theft
17:43and one of the
17:43frustrations they have
17:44is how platforms
17:47like Amazon Marketplace
17:48and other online
17:50marketplaces
17:51have made it easier
17:52for people to
17:53spend
17:54and, you know,
17:55stolen items.
17:56Have you been
17:57speaking to the
17:58social media companies
17:59and what has been
17:59your reaction?
18:01We have
18:01and I'm glad
18:02you mentioned
18:02that.
18:03Making
18:04it difficult
18:07or impossible
18:07to resale
18:09stolen items
18:11that are stolen
18:12through organized
18:12retail crime
18:13can really
18:13help us
18:16address this
18:17ongoing challenge
18:18and a couple
18:19years ago now
18:20we had some
18:22meetings,
18:23discussions
18:23and strategic
18:25planning
18:25events
18:27with retailers
18:28as well
18:28as the
18:30online marketplaces
18:31and retailers
18:33were getting
18:33their items
18:34stolen
18:34and they were
18:34seeing their
18:35stolen items
18:37resold
18:38on platforms
18:39and of course
18:40that was a source
18:41of frustration
18:41and a problem
18:42that needed
18:43a solution
18:43and so
18:44we were able
18:45to create
18:46a memorandum
18:47of understanding
18:48between the
18:48retailers
18:49and many
18:50of the retailers
18:51not all
18:51and many
18:52of the
18:53online marketplaces
18:54not all
18:55to communicate
18:56more clearly
18:57together
18:57to do
18:58more identification
19:01of stolen items
19:02on platforms
19:03and to remove
19:04them
19:04and to share
19:06that information
19:07with local
19:07law enforcement
19:08so being able
19:10to communicate
19:10to flag
19:11stolen items
19:12to make sure
19:13that when
19:13they're identified
19:14law enforcement
19:15gets involved
19:16that MOU
19:17and that
19:18understanding
19:18from multiple
19:19years ago
19:20was very helpful
19:21it hasn't
19:21completely solved
19:22the problem
19:23but we are
19:23very aware
19:24of the challenge
19:25that you
19:25have just described
19:26and have made
19:27some inroads
19:28in addressing it
19:28so which company
19:29signed on
19:30the social media
19:31company signed on
19:32to the MOU
19:33and which ones did it
19:33there's many
19:34we can get you
19:35the MOU
19:36we did a press
19:37conference on this
19:37in LA
19:38maybe two plus
19:40years ago
19:40so I will get
19:43you the specific
19:43information that you
19:44need by getting
19:45you the MOU
19:46any other questions
19:50oh sorry
19:50Chief Mendoza
19:51wanted to
19:51I echo
19:54everything that
19:55General Bonta
19:56has said
19:57I mean it's
19:58it's all about
19:59people coming
20:00forward
20:00giving us
20:01that information
20:02because we're
20:02not going to be
20:02able to identify
20:03it
20:03but when those
20:05retailers who
20:05we have
20:05partnerships with
20:06come forward
20:07and let us know
20:08that their products
20:09are there
20:09then we're able
20:10to move in
20:11work collaboratively
20:12with all our
20:13agencies
20:13and be able
20:14to seize those
20:15products
20:15and get them
20:15off the market
20:16in addition
20:17I mean
20:18there's also
20:19these crews
20:20that are
20:20repackaging
20:21these items
20:22and so
20:23the only persons
20:24that are going
20:25to recognize
20:25those items
20:26are the victims
20:26so the victims
20:27have to come
20:28forward
20:28make themselves
20:29available to us
20:30and then we'll
20:30swoop in
20:31and do the rest
20:32we just need
20:33that collaboration
20:34from the retailers
20:35from the victims
20:35and we'll collaborate
20:36amongst ourselves
20:37to make sure
20:38that we bring
20:39these people
20:39to justice
20:40thank you
20:41thank you
20:43any further questions
20:44we'll see you
20:46we'll see you