Q: How does organized retail crime impact Main Street businesses and customers?
A: Organized crime syndicates are rampaging retail stores and cargo fleets across the country through sophisticated criminal schemes. It’s costing businesses and consumers billions of dollars a year. We’re not talking about a kid stealing a candy bar or pack of gum near the checkout counter. These schemes include cybercrime, fraud and other complex cons that have surged in recent years, with the average loss per cargo theft incident exceeding $200,000. Transnational criminal organizations target U.S. shippers, retailers and the supply chain with aggressive tactics overwhelming local law enforcement. Cargo theft costs the supply chain up to $35 billion each year, contributing to higher consumer prices and driving up insurance costs.
According to the National Retail Federation, more than 73 percent of retailers report shoplifters are exhibiting more violence and aggression than the previous year, putting their employees, customers and law enforcement and security personnel at risk. These orchestrated crimes plunder large quantities of merchandise from retail stores, warehouses and the supply chain. Then criminal enterprises turn around to resell the stolen goods online or through other illicit channels for profit. As chairman of the Senate Judiciary Committee, I held a congressional hearing in July to hear from retailers, shippers and others impacted along the supply chain by these crimes. An executive with the American Trucking Association called for a coordinated federal response to address this dangerous and costly criminal activity and backed my bipartisan bill, the Combatting Retail Crime Act, to establish a multi-agency response, giving law enforcement new tools to respond to the surge in cargo theft across the country.
At the hearing I brought up recent efforts by the U.S. Department of Justice that indicted 11 defendants, including nine illegal immigrants, with stealing nearly a half-million dollars of Nike shoes from rail cars. Even more serious is when criminals steal from the food supply chain, like from a pallet of groceries or infant formula, since they break the safety seal of the shipping container and ruin the entire cargo container of goods. I also brought up another investigation that connected thefts at a mall in Katy, Texas to a cartel that’s believed to be responsible for over $100 million in theft across the country. It’s a sweeping problem that demands swift justice. Homeland Security Investigations estimate the average American family will pay more than $500 in additional costs each year due to organized retail crime.
Q: How would your bill combat these crimes?
A: A few years ago, I convened a roundtable in Cedar Rapids to hear concerns and learn from local retail leaders and law enforcement about the rise in organized retail crimes. Since then, I’ve pushed for a coordinated response at the federal level. The Department of Homeland Security has found that cartels, terrorists and human traffickers facilitate organized retail and supply chain crime and use the proceeds to finance other crimes. It’s a criminal hamster wheel that spans the globe and demands an informed and beefed up response from the nation’s counterterrorism and intelligence agencies. At the Senate hearing in July, I asked the District Attorney for San Diego County why it’s important for prosecutors to aggregate the value of stolen goods. She explained that aggregation distinguishes between someone who shoplifts food to eat from the repeat criminal offender who goes into a store with a calculator to stay under a $950 threshold so that the criminal would only be subject to a misdemeanor. That misguided policy led to retail stores locking up merchandise, instead of prosecutors locking up the perpetrators stealing the merchandise. I was pleased to hear California changed this poppycock policy to allow prosecutors to aggregate stolen merchandise in the pursuit of justice. I’ll continue pushing in Congress for criminal action to be met with criminal punishment.