Law Enforcement, Retail Leaders Examine Retail Theft’s Role in Drug Trade at Cedar Rapids Roundtable

CEDAR RAPIDS, IOWA – A group of local, state and federal officials explored the shadowy ties between a spike in organized retail crime and the illicit drug trade at a public roundtable today. The event, hosted by U.S. Sen. Chuck Grassley (R-Iowa), fostered dialogue between retail leaders, who are increasingly targeted by organized retail crime rings, and law enforcement to better understand and combat the criminal schemes that ultimately enrich drug cartels.

 

International money launderers are increasingly using stolen products from retail crime rings to move proceeds from U.S.-based drug sales back to cartels in Mexico. In one case, outlined by Home Depot Vice President of Asset Protection Scott Glenn, cash from the black market sale of stolen Home Depot products was used to purchase large quantities of fentanyl to be resold in the same region as the original thefts.

 

In Iowa, organized retail crime accounted for an estimated $1.38 billion in business losses and $68 million in lost tax revenue in 2021. That same year, 470 Iowans were lost to drug overdose, with the vast majority involving fentanyl.

 

“We’re seeing a disturbing link between organized crime targeting American retailers and the drug cartels that are fueling record overdose deaths in the United States. Our communities are caught in a harmful cycle where workers and businesses are robbed, sometimes violently, to advance money-laundering schemes that enable drug cartels to send poison right back to those same communities. These complex crimes require a collaborative response, and I’m grateful to have voices at all levels of law enforcement and retail leaders working together to prevent crime and save lives,” Grassley said.

 

 

Grassley introduced the bipartisan Combating Organized Retail Crime Act and has led several legislative efforts to improve the response to the opioid epidemic.

“Organized Retail Crime (ORC) poses a serious threat to local communities and retailers. ORC enables Chinese Money Laundering Organizations, who have also become the preferred money launders of Mexican Cartels trafficking in deadly fentanyl. HSI is committed to investigating and dismantling these transnational criminal organizations that threaten the Homeland and profit from the trafficking of stolen goods and fentanyl,” said Steve Cagen, Assistant Director of Homeland Security Investigations at the U.S. Department of Homeland Security.

“We as Iowans will continue to see the rise of methamphetamine and fentanyl in our communities until the SW border is secured and Mexican Drug Trafficking Organizations are dealt with more aggressively and prosecuted at the highest level,” said Ryan Moore, Assistant Director of the Iowa Division of Narcotics and Enforcement, Iowa Department of Public Safety.

 

“Organized retail crime is a growing problem for retailers, and The Home Depot is fighting it on all fronts. We're proud to partner with Senator Grassley, HSI and local law enforcement to work together to stop dangerous criminals from stealing from our stores,” said Scott Glenn, The Home Depot’s Vice President of Asset Protection.

 

“In Cedar Rapids, we are fortunate to have close relationships with our local, state, and federal partners. The opportunity to participate in this roundtable discussion and learn more from all the participants is a valuable experience. The law enforcement community recognizes that education and exposure to important issues like this are necessary as we work toward solving complex problems. We also recognize the importance of information sharing and cooperation between all levels of government and in partnership with private entities. Participants in this roundtable are demonstrating their commitment to our community,” said Cody Estling, Captain of the Cedar Rapids Police Department.