Congresswoman Lee and 80+ Bipartisan Members of Congress Call for Action on Organized Retail Crime

WASHINGTON – Congresswoman Susie Lee (NV-03), alongside Congressman David Joyce (OH-14), Congresswoman Laurel Lee (FL-15), and Congresswoman Dina Titus (NV-01), led a bipartisan group of over 80 lawmakers demanding action from the Department of Homeland Security (DHS) to help crack down on Organized Retail Crime (ORC). 

The letter calls for DHS to provide immediate updates to Congress on their efforts to address this violent crime, specifically their progress on establishing an organized retail crime coordination center. 

“The risk of ORC is not only due to the violence displayed during the act of retail theft, especially to retail workers, but also health risks posed by consuming stolen goods like baby formula or pharmaceuticals, which may be improperly stored or tampered with prior to the final purchase by a consumer,” wrote the lawmakers. “ORC also endangers Main Street businesses, the economy, and public safety. A Retail Industry Leader’s Association report indicated that ORC caused nearly $70 billion worth of financial loss due to stolen goods from American retailers in 2019. That number has only continued to increase today.” 

The letter comes on the heels of Congresswoman Lee introducing the bipartisan Combatting Organized Retail Crime Act. The bill would legally require both the establishment of an ORC Coordination Center and future DHS updates to Congress, as well as designate ORC a federal crime to help federal law enforcement to combat these operations. Congresswoman Lee has also fought for additional language encouraging the establishment of an ORC Coordination Center from her seat on the House Appropriations Committee, as well as multiple meetings with law enforcement and retailers in southern Nevada on the issue.

In Nevada, ORC caused an estimated loss of $85 million in tax revenue in 2021 alone. Last year, a Summerlin beauty store was the victim of ORC and the year before that, Metro uncovered a 30-foot-long trailer of stolen goods from dozens of retailers totaling over $1 million. 

Full text of the letter can be found here and below: 

 

September 12^th, 2024 

 

The Honorable Patrick J. Lechleitner 

Acting Director Executive 

U.S. Immigration and Customs Enforcement 

Washington, D.C. 20024 

 

The Honorable Katrina W. Berger 

Associate Director 

Homeland Security Investigations 

Washington, D.C. 20536 

 

Dear Acting Director Lechleitner and Executive Associate Director Berger:

 

With the rise of organized retail crime (ORC) in our communities and its growing threat to our constituents, we write to request an update on Homeland Security Investigations (HIS) efforts to address this problem. The fiscal year (FY) 2024 Department of Homeland Security (DHS) Appropriations Act incorporated bipartisan language that encouraged HIS to consider establishing an Organized Retail Crime Coordination Center. 

According to HIS’s 2022 report in collaboration with the Association of Certified Anti-Money Laundering Specialists, “organized retail crime is leading to more brazen, more violent attacks in retail stores throughout the country, and many of the criminal rings orchestrating these thefts are also involved in other serious criminal activity” such as drug and human trafficking, posing significant societal and health risks to our communities. The risk of ORC is not only due to the violence oftentimes displayed during the act of retail theft, especially to retail workers, but also health risks posed by consuming stolen goods like baby formula or pharmaceuticals, which may be improperly stored or tampered with prior to the final purchase by a consumer.   

Beyond public safety, ORC also endangers Main Street businesses and the economy. A Retail Industry Leader’s Association report indicated that ORC caused nearly $70 billion in financial losses due to stolen goods from U.S. retailers in 2019. That number has continued to increase year by year, impacting businesses of all sizes, communities, and consumers. Notably, a Forbes survey recently found that 90 percent of small business retailers nationwide have experienced theft at their stores. Costs associated with ORC due to stolen merchandise or heightened security measures also trickle down directly to American families, costing them more than $500 annually according to DHS estimates. 

We applaud the significant progress being made at the state level in combating ORC and encourage DHS to work collaboratively with law enforcement to disrupt these significant criminal operations and help keep employees, consumers, and communities safe. Currently, 18 states have established Task Forces dedicated to fighting ORC. In collaboration with the California Highway Patrol and other agencies, California’s Attorney General has actively arrested and charged individuals involved in ORC. Additionally, the state’s Southern Division Organized Retail Crime Task Force has been instrumental in tackling these crimes, as evidenced by the recent arrests related to a large-scale theft operation targeting Home Depot stores across Southern California. 

ORC is widespread and impacts every state. Ohio’s Franklin County Sheriff’s Department has an ongoing investigation into a retail theft ring occurring across central Ohio and the Las Vegas Metro Police Department’s Organized Retail Theft Section recovered over $300,000 of stolen merchandise last year. These efforts underscore the importance of coordination among multiple levels of law enforcement to address ORC effectively across the country.   

HIS is critical in combating organized retail crime due to its broad jurisdiction and expertise in investigating complex transnational crimes. We acknowledge and appreciate the efforts of Operation Boiling Point in coordinating with federal, state, local, and international law enforcement agencies to combat ORC. We continue to believe, however, that establishing a formalized Organized Retail Crime Coordination Center within HIS would significantly enhance the ability of law enforcement and businesses to mitigate the threats posed by these sophisticated criminal networks. This Center could facilitate better information sharing, resource allocation, and strategic planning, ultimately leading to more effective prevention and enforcement actions.   

Given the urgency and importance of this issue, we respectfully request an update on the status of HIS’s engagement with external stakeholders and any progress on establishing an Organized Retail Crime Coordination Center, including details on the actions already taken by the agency to consider congressional intent, planned next steps, implementation challenges encountered, and additional resources or authorities that you believe may be needed. We request this update in writing no later than September 27, 2024.   

We appreciate your attention to this matter and look forward to working together towards protecting our communities.   

Sincerely, 

 

MEMBERS OF CONGRESS

 

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