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Good morning. The committee, subcommittee on crime and government surveillance is called to order. Without objection, the chair is authorized to declare a recess at any time. We welcome everyone to today's hearing on organized crime. Without objection, I'm going to, even though he may not come, Mr. Correa will be permitted to participate in today's hearing for the purpose of questioning witnesses and we'll receive five minutes for that purpose. I thank our Democrat colleagues for working with us to get started at 9 this morning. I now recognize the gentlewoman from Florida to lead us in the Pledge of Allegiance. Ms. Lee.
thank you i now recognize myself for an opening statement i'm pleased to be here at the subcommittee hearing this morning the business before us today is a hearing titled protecting consumers and businesses confronting organized retail crime organized retail crime is a growing threat to our retailers and their employees our law enforcement and our communities the crisis is not going away in fact it is on the rise in fact we We held a hearing on this very topic a little more than two years ago. Today, we will have the opportunity to see how the crisis has evolved. The rise in organized retail crime and cargo theft is causing businesses to close and is endangering the public. Work goes beyond simple shoplifting. Organized theft groups strategically steal with a specific intent to resell for profit. Let's look at a recent example that occurred just a few miles from where we sit today. In March 2025, authorities in Virginia and Maryland arrested two adults and a teenager responsible for allegedly stealing over $190,000 in a series of organized retail robberies, including $50,000 taken in Fairfax County. The suspects first stole perfume, and when Ulta secured it behind glass, they allegedly began smashing the cases with a hammer to access the products. For larger OTGs, Oreck is another business in a portfolio that may also include narcotics distribution, human trafficking, and other illicit activities. In the United States in 2023, Walmart lost $6.5 billion in revenue due to theft and was forced to close 11 stores in 2024 due to the severity of theft across the country. But ORC victims are not only big box stores. Eight in ten retailers have said the violence and aggression associated with ORC incidents increased in the past year. Additionally, ORC groups have increasingly engaged in cargo theft, targeting the trucking and railroad industries as lucrative new sources of stolen goods. According to the American Trucking Association, that's ATA, cargo theft has cost the U.S. trucking industry approximately $7 billion per year.
Rogue prosecutors and soft on crime policies in some jurisdictions are fueling a rise in work. Criminals emboldened by soft on crime prosecutions and progressive bail reform laws know that they can avoid prosecution and incarceration if they stay below the felony threshold. Thus, criminals intentionally steal products valued just below the dollar amount required for the crime to become a felony, knowing that those crimes are not prosecuted. Furthermore, with some states passing irresponsible progressive bail reform laws, these criminals know that they will be immediately released. Once they are released, they go on to commit similar or more serious crimes without facing any consequences. It's time we fight back. Organized retail crime must be stopped, criminals must be penalized, and shoppers and retail employees must not live in fear. I want to give some key statistics and impacts. Cargo theft costs the trucking industry $18 million per day. That's about $7 billion annually. Retail theft is estimated at $45 billion in 2024 and is projected to exceed $53 billion by 2027. Nationwide job losses attributed to ORC, more than 650,000. Merchandise theft, shoplifting is up 19% in the past year, on top of a 24% increase in 2022 and 2023. External shoplifting incidents are up 18%, over an overall merchandise theft of 12%. 51% of retailers report thieves are more aggressive in the past year. after a 73% reported increase in the prior year. 70% of retailers saw increases in phone scams, 55% in digital e-commerce fraud, 50% in cargo supply chain theft tied to ORC. 66% of retailers report transnational ORC involvement since 2024. And as someone who lives in Arizona, I can tell you transnational theft is a big issue. I look forward to hearing from our top flight list witnesses today, our panel of witnesses today, and I'm grateful for them being here, grateful to you in the audience who are here, and grateful to each member of the committee who is here and our staff as well.
With that, I yield back on my opening statement and now we've moved on to the next thing. Yeah, oh, we got Mr. Cohen. Yeah, I recognize my friend.
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