Michelle Mack, a California woman who led an organized retail theft ring stealing beauty products from stores like Ulta and Sephora, has been sentenced to pay $3 million in restitution.
Mack, 54, was sentenced to five years in prison after being arrested in December 2023. Her crime ring targeted several retailers, with stolen products resold on Amazon at discounted prices.
Retail Crime Queenpin Mack Ordered to Pay Restitution After Forfeiting Bonsall Mansion
As part of her plea deal, Mack was required to forfeit her $2.35 million mansion in Bonsall, California.
The funds from the sale of the mansion, after settling any debts, will be used to pay part of the restitution. Mack and her husband, Kenneth, will pay the remaining balance over time.
The couple's complex retail theft scheme caused significant losses, with an estimated $8 million worth of stolen goods, spanning at least 12 states, NY Post said.
Though it is unclear how the restitution will be divided between the victims, the order is a significant step in holding organized retail crime accountable.
Ulta Beauty, which had been particularly targeted, did not immediately comment on how the restitution funds would be used.
However, Dan Petrousek, senior vice president of loss prevention at Ulta, expressed gratitude for the law enforcement partnership that led to the investigation.
David Johnston Discusses Challenges of Recovering Losses in Retail Theft Cases
While $3 million is a small fraction compared to Ulta's net income, experts like David Johnston from the National Retail Federation highlight that restitution in these types of crimes is a recent development and often does not fully compensate retailers for their losses.
According to CNBC, Johnston explained that the scale of these crimes, involving complex organizations and multiple individuals, justifies substantial restitution amounts, though recovery for businesses can take years.
Mack's arrest and sentencing shine a light on the growing issue of organized retail crime, which has increasingly impacted large retailers.
In addition to Mack, at least nine others were charged for their roles in the theft ring, which spanned hundreds of stores in California and beyond.
