Crime and Courts

California couple must pay Ulta and Sephora $3 million for running nationwide retail theft ring, judge rules

The Macks were accused of running an organized national crime ring that stole at least $8 million worth of makeup and other goods from retailers, particularly Ulta and Sephora

CNBC

The Macks pleaded guilty to some charges in a multi-million dollar national theft ring targeting makeup stores.

A Bonsall couple who organized a national crime ring that stole millions from large retailers across the country, particularly luxury cosmetic stores, were ordered by a San Diego judge Thursday to pay millions in restitution to Ulta and Sephora.

Kenneth and Michelle Mack pleaded guilty in June to several counts of grand theft and conspiracy for the burglary ring that had at least 12 women shoplifting makeup and other goods that the Macks would re-sell online. The scheme targeted retail stores across the country, including about 230 Ulta stores, a LensCrafters in Clairemont and an Ulta store in Mira Mesa, prosecutors said.

A San Diego County judge sentenced Kenneth Mack Thursday to five years and four months in prison. As part of his plea deal, he will be released after one year and the rest will be served as probation with community service. Michelle Mack's sentencing will be served after her husband's so that the couple can care for their minor children. Michelle Mack was ordered not to leave the state and go near any Ulta or Sephora retailers in the meantime.

The judge also ordered the Macks and some of their co-conspirators to pay $3 million in restitution to Ulta and $13,000 to Sephora.

Dressed in pink loungewear on one early morning, Michelle Mack and her husband Kenneth were handcuffed and escorted into squad cars from their Bonsall mansion as CNBC's cameras rolled, NBC 7's Omari Fleming reports. 

Michelle Mack was accused of directing several women to shoplift products, paying for the women's travel expenses, as well as providing them with a list of retail stores across the country to target. Some of Michelle Mack's accomplices sometimes mailed stolen goods to a Bonsall post office, where Mack had a company address listed under "Online Makeup Store," according to prosecutors. She then resold the products on Amazon.

The Macks were arrested in their Bonsall mansion, which is equipped with its own vineyard and chapel that the couple rented out as a wedding venue and an AirBnb, after a search warrant was served in December 2023. During the search, more than $300,000 worth of makeup and other products were found, prosecutors said.

California Attorney General Rob Bonta originally estimated the losses at about $8 million but believed the final amount would be much higher.

At least 9 people were arrested in connection with the scheme.

The plea agreement lessened the charges against the Macks from 140 counts that were originally filed against nine defendants. Those original counts include 136 felony counts of grand theft, two counts of receiving stolen property, one count of conspiracy and one count of organized retail crime.

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