Authorities say two Rhode Island men have been charged as part of a multi-million dollar organized theft ring following the seizure of 60,000 stolen items, primarily over-the-counter pharmaceutical products and cosmetics, worth about $1.6 million.
The U.S. Attorney's Office for Rhode Island announced Monday that 52-year-old Norman L. Cipriano, of Warwick, and 59-year-old Patrick M. Vigneau, of Cranston, have been arrested and charged in federal court.
According to court documents, the crime ring targeted retailers nationwide and then resold the stolen goods in bulk to other retailers and private citizens. Authorities allege that Cipriano and Vignueau are high-level wholesalers known within organized theft rings as "Diverters." They often set up shell companies, own warehouses where stolen goods are shipped and act as suppliers for small- to mid-size retail chains.
The U.S. Attorney's said agents and task force officers from the U.S. Postal Inspection Service, Homeland Security Investigations and Warwick police recently executed search warrants in Warwick, Cranston and Pawtucket, seizing enough stolen goods to fill three fully loaded 24-foot box trucks. Authorities also moved to freeze several bank and e-commerce accounts, and have seized more than two dozen boxes in transit via UPS.
WJAR was on scene last week when Homeland Security Investigations raided a home on Leslie Street in Cranston. Numerous Home Depot boxes could be seen being removed from a garage storage area.
Authorities allege that the Rhode Island-based crime ring has netted roughly $12.3 million in sales in recent years.
“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” Zachary A. Cunha, U.S. Attorney for the District of Rhode Island, said in a statement. “In addition to imposing higher prices on legitimate retail consumers, theft rings like this one put unsuspecting customers at risk from damaged, expired, or adulterated goods, and impose untold economic costs. Today’s arrests and the disruption of this network reflects the kind of tenacity and dedication that this Office and our partners will continue to bring to bear to combat this type of brazen criminality.”
“The scale of this alleged theft organization is simply astonishing. Special agents and officers seized tens of thousands of stolen items valued at over $1.6 million, but this represents only a snapshot of this alleged scheme,” added Michael J. Krol, special agent in charge for Homeland Security Investigations in New England. “HSI is proud to work alongside our federal, local, and private industry partners to unravel this organization. Organized retail theft is not a victimless crime and when theft groups undermine international commerce and the supply chain, we all pay.”
Cipriano and Vigneau are charged with interstate transportation of stolen goods, conspiracy to commit interstate transportation of stolen goods, money laundering, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from unlawful activity.
The U.S. Attorney's office said organized theft rings like this one operate by dividing responsibilities among various individuals. At the first stage, they employ individuals known as “Boosters,” led by crew bosses who provide them with lists of items to be stolen from retail outlets, most often high-demand, high-priced products. The stolen items are then turned over to “Fencers,” middlemen who work between the boosters and crew bosses and other individuals involved in the organization. Fencers move the items to “Cleansers” who strip retail and anti-theft stickers and devices from the stolen items prior to them being shipped off to “Diverters.” Diverters then act as wholesalers, salespeople, or coordinators of secondary sales, often times selling the stolen goods to small to mid-sized retail chains that in turn sell the products to consumers.
In this case, authorities allege that stolen and cleaned merchandise was turned over to Cipriano and Vigneau in their roles as Diverters. The defendants, allegedly operating under the names of various shell companies, and working with others, sold large volumes of stolen merchandise via e-commerce sites such as eBay, Walmart, and Amazon. In order to avoid detection, unregulated third-party processors, such as PayPal, were used, tied to bank accounts controlled by the defendants.
Loss prevention personnel from Walmart, Stop & Shop, CVS, Home Depot, UPS, Amazon and eBay all assisted in the investigation.
