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(WNY News Now) As part of an international $2 million organized retail theft case, Governor Kathy Hochul and Queens District Attorney Melinda Katz announced the first-ever indictment under a pioneering statute targeting the sale of stolen goods.
In the ongoing battle against organized retail theft, Queens District Attorney Melinda Katz and Governor Kathy Hochul announced a historic indictment ahead of the holiday shopping season. According to the indictment, organized crews stole retail goods valued at over $2 million over the course of a multi-year, global operation. As part of Governor Hochul’s five-point plan to combat organized retail theft, the case contains the first-ever charges under his recently passed statute that makes encouraging the sale of stolen goods a crime. Over $40 million was allocated for law enforcement, including State Police’s dedicated Retail Theft Teams, whose undercover units were responsible for this indictment, as part of the enhanced safeguards against organized retail theft that were enacted with the FY25 Budget. Additionally, it made safeguarding frontline employees a top priority by toughening the penalty for attacking a retail employee.
People in New York are fed up with the retail theft that has been affecting our towns and businesses. Governor Hochul stated, “We are seeing results now because I promised we would fight it head-on.” Together with our colleague District Attorney Katz, we are dismantling a huge retail theft ring that stretches from New York City to Maryland to the Dominican Republic. Earlier this year, we provided law enforcement and store owners with the resources and assistance they needed to tackle this challenge. My top priority is keeping New Yorkers safe, and as the holiday shopping season approaches, we will keep working to make sure that people feel comfortable entering stores and that business owners can concentrate on providing for their clients rather than locking up commonplace items like toothpaste and deodorant.
According to Queens District Attorney Melinda Katz, the purpose of this investigation and the arrests is to hold the defendants accountable. It is also an excellent chance to caution people about making rash purchases, particularly in the run-up to the holidays. The defendants allegedly operated a large-scale fence business that sold stolen goods for far less than retail. almost the course of two years, this team sold almost $2 million worth of stolen goods through locations in Queens County and the Dominican Republic. In an effort to curb the sale of stolen items online and in physical stores, the legislature passed a new statute signed into law by Governor Hochul, which is the first time anyone in New York has been charged with the crime of promoting the sale of stolen goods. We appreciate our partners at the New York State Police and Homeland Security Investigations New York for their efforts on this ongoing investigation, as well as the governor’s leadership on this matter.
Under the name Yvelisse Fashion, LLC, the defendants reportedly sold stolen goods both domestically and internationally, including designer clothes and accessories, perfume, makeup, and beauty products. They allegedly instructed retail theft squads to steal particular items, which they subsequently marketed from their Dominican Republic home and storefront. Additionally, the pair is accused of paying truck drivers to transport goods from manufacturer warehouses to areas under their control that were intended for Sephora and Ulta Beauty. Fostering the sale of stolen goods is one of the allegations against the defendants; this is the first time that New York has accused this recently adopted offense.
Large amounts of retail cosmetics, beauty products, perfume, designer clothes, and accessories that were taken from stores all throughout the East Coast were purportedly bought by the defendants. Additionally, they coordinated the widespread theft of goods straight from producers before they were sent to stores. They paid the theft squads between 10 and 15 percent of the retail value of the stolen goods, which amounted to about $50,000 per week. After that, the products were cataloged and offered for sale in New York via internet ads and a physical store called Yvelisse Fashion in Santiago, Dominican Republic.
Members of the Governor’s Retail Theft Task Force, led by Major Samuel P. Spezio, and the Queens District Attorney’s Detective Bureau, led by Chief Investigator Robert LaPollo, as well as staff from Homeland Security Investigations, the New York Border Enforcement Security Task Force’s Trade Enforcement and Interdiction Group, and Customs and Border Protection, participated in the investigation, which was carried out by the New York State Police Special Investigations Unit. The inquiry was aided by retailers American Eagle, Sephora, Macy’s, Ulta Beauty, and Victoria’s Secret.
According to New York State Police Superintendent Steven G. James, retail theft poses a risk to customers, employees, and business owners in addition to having a negative financial impact on companies. I would like to express my gratitude to Governor Hochul for providing the resources and assistance required to make these arrests, as well as to District Attorney Katz and her team for their cooperation on this case. The State Police are still actively involved in this matter and will not put up with the acts of those who have stolen tens of thousands of dollars’ worth of goods, harming both the public and shops.
Along with the FY25 Enacted Budget, Governor Hochul was able to obtain enhanced safeguards against organized retail theft. By addressing all areas of vulnerability, this all-encompassing strategy gives law enforcement, prosecutors, and business owners additional authority. The new protections include a $5 million tax credit to assist small business owners in investing in additional security measures, as well as higher criminal penalties for assaulting a retail employee, which are now felonies instead of misdemeanors. The FY25 Enacted Budget under Governor Hochul built on three years of progress in reducing crime in the state and made significant investments in public safety.
The five-point strategy put forth by Governor Hochul to combat organized retail theft:
raises the criminal penalties for assaulting a retail employee from a misdemeanor to a felony. This new felony will apply to anyone who physically harms a retail employee while they are doing their job.enables the worth of stolen items to be combined by prosecutors when larceny charges are filed. In order to obtain a greater larceny threshold when stolen under the same criminal scheme, the budget permits the aggregation of retail products from other outlets.prohibits encouraging the sale of stolen products in order to target third-party vendors. If someone sells stolen items on any website or in person, they will be held guilty.$40.2 million will be used to support State Police, District Attorney’s offices, and local law enforcement agencies’ dedicated Retail Theft Teams. One hundred members of the New York State Police are specifically assigned to combat organized retail theft.Small firms can use a $5 million tax credit to purchase cameras and other security equipment. The Budget establishes a $3,000 tax credit for small firms who spend the threshold amount on retail theft prevention measures in order to lessen the financial strain on them for additional security measures.
“Today is a new day for New York State in the fight against organized retail theft, as the newly added crime of fostering the sale of stolen goods online is being charged for the first time,” stated State Senator Brad Hoylman-Sigal. In order to combat the surge in shoplifting and organized retail theft that has afflicted numerous small businesses around New York City, Assemblymember Rosenthal, Manhattan District Attorney Bragg, and I campaigned to include this new felony in our criminal code. Prior to this, there were penalties for holding stolen goods, but no explicit rule addressed e-fencing, or the online resale of stolen products, which has grown by almost 60% since 2015 and cost small and retail firms billions of dollars. For implementing this new law and safeguarding New York’s business community, I am appreciative of Governor Hochul and Queens District Attorney Melinda Katz.
Retail theft, whether it occurs in-person or online, damages our economy, small companies, and most importantly, hardworking New Yorkers, according to State Senator Leroy Comrie. Queens District Attorney Melinda Katz now has the power to pursue those who would attempt to evade the law by encouraging the sale of stolen items, thanks to Governor Hochul and the policies we implemented in this year’s budget. I applaud Governor Hochul for her leadership in safeguarding customers and retail employees as we approach the holiday season, and I praise DA Katz for her tenacity in pursuing these scofflaws.
The fabric of our communities is upended by organized retail theft, according to Assemblymember Linda B. Rosenthal. Finally, this global retail ring that operated from New York City to the Dominican Republic will be held accountable for their unlawful activities. I’m happy that my legislation, which focuses on retail theft, was able to make a minor but significant contribution to the prosecution of these criminals. In the Albany hallways next session, I will keep putting the needs and security of every New Yorker first.
According to Assemblywoman Jessica González-Rojas, Concerns about retail theft have been raised by our company and small business owners. I’m happy that the legislature is acting to alleviate this load on our companies and to strengthen protections for retail employees. We appreciate the efforts of our Governor, District Attorney, and corporate executives in making sure we are moving quickly.