Hearings to examine smash and grab, focusing on criminal networks and organized theft.
2025-07-15
Source: Congress.gov
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Good morning, everybody. Today's hearing addresses the continued rise in organized retail and supply chain crime and the criminal networks that are involved in that criminal activity. We've all seen videos of mobs ransacking stores of thousands of dollars of goods and doing it in a very short period of time. Somebody measured one time, two minutes. The reality is some of the worst criminal organizations, including cartels, terrorists, and human traffickers, use this type of crime, funding their misdeeds or launder ill-gotten proceeds. These groups steal large quantities of merchandise from retail stores and the supply chain, then attempt to resell these stolen items online and through other illicit channels. One Homeland Security investigation operation called King of Thieves uncovered organized retail crime ring, which had sent millions of dollars in criminal proceeds overseas That same group financed coyote fees for deported individuals to return to the United States. Earlier this year in Katy, Texas, law enforcement discovered that mole thieves were linked to cartels responsible for over $100 million in thefts across the United States. So far, law enforcement officials have linked 98 individuals to this ring.
This threat has evolved towards supply chains, exposing significant vulnerabilities. The Justice Department recently indicted 11 defendants, including nine illegal immigrants, with stealing nearly half a million dollars worth of Nike shoes. The defendant's new valuable goods were in the train cars based on visible high security locks. The defendant cut the air hose to the train's braking system, which can cause derailments and serious injuries. Criminals see this type of crime as a low risk, very high reward way to fund their enterprises with no regard for the people that they endanger. It's not just luxury goods these thieves are after. Items in food and beverage categories are among the most stolen in supply chain crimes. These goods are transported in specific ways to maintain food safety, from infant formula to basic groceries. Once a seal is broken and a single pallet of goods is stolen, the entire container is no longer safe for consumption. Congress must treat these acts for what they are. They're acts of violent, sophisticated criminals exploiting a patchwork system. Efforts to address this sweeping problem through civil actions are insufficient. Criminal action must be met with criminal punishment. Federal coordination is needed to share information, promote collaborative investigations, and fully address this sweeping cross jurisdictional crime
that impacts all Americans. Homeland security investigators estimate that the average American family will pay more than $500 annually in additional costs due to the impact of organized retail crime. This is one of the many reasons 38 states' Attorney General support Senator Cortez Mastos and my bill. The bill goes by the title of Combating Organized Retail Crime. Many of the signatories on this letter are from members of this committee's home state. They wrote, quote, this legislation would provide the necessary resources at the state and federal level to bring organizations and individuals behind this nationwide problem to justice, end of quote. So without objection, I'll enter the letter into the record and now call on ranking member Senator Durbin for his opening statement.
Thanks, Chairman Grassley, for holding this hearing to look into large-scale theft of retail products that are then sold to unsuspecting consumers, often on online marketplaces. This is not a new problem. Back in 2008, I met with Home Depot. They told me the story about a drill that they sold exclusively that was being found for sale new in the box and at a discount by sellers online. It had to have been stolen some part of the manufacturing or sales process. And it wasn't just tools. This was and still is happening in all kinds of products, all kinds of stores, including cosmetics, electronics, clothes, over-the-counter drugs, toys, and as the chairman said, food and other things. I remember when the CEO of Walgreens came in to see me based out of Illinois, and I said, now why do I have to call a clerk at your drugstore when I want to buy underarm deodorant so they can unlock the shelf and I can buy the underarm deodorant? Are these so precious that they have to have special surveillance and guarding? And he said, the fact of the matter is retail theft takes these things in volume and sells them in volume. And of course, it's not the individual that's likely to be the one to sell it.
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