Governor Hochul and District Attorney Katz Announce Landmark Indictment in $2 Million Organized Retail Theft Bust Ahead of Holiday Shopping Season

Ahead of the holiday shopping season, Governor Kathy Hochul and Queens District Attorney Melinda Katz announced a landmark indictment in the ongoing fight against organized retail theft. The indictment alleges a sprawling, multi-year, international operation that saw upwards of $2 million in retail goods stolen by organized crews. The case includes the first-ever charges under Governor Hochul's newly enacted law criminalizing the fostering of stolen goods sales, a key component of Governor Hochul's five-point plan to fight organized retail theft. The new protections against organized retail theft signed into law with the FY25 Budget included over $40 million for law enforcement including dedicated Retail Theft Teams within State Police, whose undercover units led to this indictment. It also prioritized protecting frontline workers by increasing the penalties for assaulting a retail worker.

"New Yorkers are sick and tired of the retail theft that has been plaguing our businesses and communities - I promised we would fight it head on, and now we are seeing results," Governor Hochul said. "Earlier this year, we gave law enforcement and store owners the tools and support needed to help meet this challenge, and today with our partner District Attorney Katz, we're taking down a massive retail theft ring stretching from New York City to Maryland to the Dominican Republic. Keeping New Yorkers safe is my number one priority, and as we enter the holiday shopping season, we will continue focusing our efforts to ensure people feel safe walking into stores and business owners can focus on serving their customers instead of locking up everyday items like toothpaste and deodorant."

Queens District Attorney Melinda Katz said, "This investigation and these arrests are about holding the defendants accountable and are also a great opportunity to warn people to be extremely careful when it comes to their purchases especially approaching the holiday season. As alleged, the defendants ran a widespread fencing operation that offered stolen merchandise for sale far below retail prices. Through locations in Queens County and the Dominican Republic, this crew sold more than $2 million in stolen merchandise in a two-year period. This marks the first time in New York anyone has been charged for the crime of fostering the sale of stolen goods, a new measure passed by the legislature and signed into law by Governor Hochul to stop the sale of stolen goods through both online platforms and brick-and-mortar locations. We thank the governor for her leadership on this issue and our partners at the New York State Police and Homeland Security Investigations New York for their work on this ongoing investigation."

The defendants allegedly sold stolen merchandise including high-end makeup, perfume, beauty products, designer clothing and accessories, locally and abroad under the name Yvelisse Fashion, LLC. They allegedly directed retail theft crews to steal specific merchandise and then sold the stolen products from their home and a storefront in the Dominican Republic. The couple is also alleged to have paid truck drivers to divert products bound for retailers such as Sephora and Ulta Beauty from manufacturer warehouses directly to locations under their control. Among the charges brought against the defendants is fostering the sale of stolen goods, the first time this newly adopted crime has been charged in New York.

The defendants allegedly purchased large quantities of stolen retail cosmetic goods, beauty products, perfume, designer clothing and accessories from numerous theft crews that stole from retailers up and down the East Coast. They also organized the large-scale theft of merchandise directly from manufactures before it was distributed to retail outlets. They received approximately $50,000 worth of stolen goods per week for which they paid the theft crews approximately 10 to 15 percent of retail value. The goods were then catalogued and sold in New York through online advertisements as well as from a brick-and-mortar boutique called Yvelisse Fashion in Santiago, Dominican Republic.

The investigation was conducted by the New York State Police Special Investigations Unit including members of the Governor's Retail Theft Task Force under the supervision of Major Samuel P. Spezio along with members of the Queens District Attorney's Detective Bureau under the overall supervision of the Chief Investigator of the Detective Bureau Robert LaPollo, as well as personnel from the Homeland Security Investigations, New York Border Enforcement Security Task Force's Trade Enforcement and Interdiction Group and Customs and Border Protection. Retailers Ulta Beauty, Sephora, Macy's, American Eagle and Victoria's Secret assisted in the investigation.

New York State Police Superintendent Steven G. James said, "Retail theft not only financially impacts businesses, but also presents peril to business owners, retail workers and patrons. I want to thank District Attorney Katz and her staff for her collaboration on this case, and Governor Hochul for providing the support and resources necessary to carry out these arrests. The State Police remains fully engaged on this issue and will not tolerate the actions of individuals responsible for stealing tens of thousands of dollars in merchandise, victimizing both retailers and the public."

As we enter the holiday shopping season, we will continue focusing our efforts to ensure people feel safe walking into stores and business owners can focus on serving their customers instead of locking up everyday items like toothpaste and deodorant."

Governor Hochul secured new protections against organized retail theft that were signed into law with the FY25 Enacted Budget. This comprehensive approach puts more power in the hands of law enforcement, prosecutors and business owners - targeting every area of vulnerability. The new protections include increased criminal penalties for anyone who assaults a retail worker elevating it from a misdemeanor to a felony, and includes a $5 million tax credit to help small business owners invest in added security measures. Governor Hochul's FY25 Enacted Budget made historic investments in public safety and builds on three years of progress driving down crime statewide.

Governor Hochul's five-point plan to fight organized retail theft:

1. Increases criminal penalties for anyone who assaults a retail worker by elevating it from a misdemeanor to felony. Any person who causes physical injury to a retail worker performing their job will be subject to this new felony.
2. Allows prosecutors to combine the value of stolen goods when they file larceny charges. The Budget allows retail goods from different stores to be aggregated for the purposes of reaching a higher larceny threshold when stolen under the same criminal scheme.
3. Makes it illegal to foster the sale of stolen goods to go after third-party sellers. A person will be found guilty if they use any website or physical location to sell stolen goods.
4. $40.2 million for dedicated Retail Theft Teams within State Police, District Attorneys' offices and local law enforcement, including 100 New York State Police personnel dedicated to fighting organized retail theft.
5. $5 million tax credit to help small businesses invest in added security measures such as cameras. To help alleviate the burden on small businesses for additional security measures, the Budget creates a $3,000 tax credit for any small businesses who spend the threshold amount of money on retail theft prevention measures.

State Senator Brad Hoylman-Sigal said, "Today marks a new day for New York State in the fight against organized retail theft, as the newly added crime of fostering the sale of stolen goods online is being charged for the first time. Assemblymember Rosenthal, Manhattan District Attorney Bragg and I pushed to add this new offense to our criminal code to help address the explosion of shoplifting and organized retail theft that has plagued countless small businesses across New York City. While penalties previously existed for possessing stolen goods, until now there was no specific law that targeted e-fencing, or reselling stolen items online, which has increased by nearly 60% since 2015 and has resulted in the loss of billions of dollars for retail companies and small businesses. I'm grateful to Governor Hochul and Queens District Attorney Melinda Katz for enforcing this new law and protecting New York's business community."

State Senator Leroy Comrie said, "Retail theft whether online or in-person, hurts our economy, small businesses and most of all, hardworking New Yorkers. Thanks to Governor Hochul and measures we enacted in this year's budget, Queens District Attorney Melinda Katz, now has the ability to prosecute those who would seek to thwart the law by fostering the sale of stolen goods. I commend DA Katz for her diligence in going after these scofflaws and Governor Hochul for her leadership in protecting consumers and retail workers as we head into the holiday season."

Assemblymember Linda B. Rosenthal said, "Organized retail theft upends the fabric of our communities. This international retail ring, which stretched from New York City to the Dominican Republic, will finally face the sound of music for their illegal actions. I'm glad that my law cracking down on retail theft was able to play a small but pivotal role in bringing these perpetrators to justice. I will continue to prioritize the needs and safety of all New Yorkers in the halls of Albany next session."

Assemblymember Jessica González-Rojas said, "Our business and small business owners have been sounding the alarm on retail theft. I'm glad that we in the legislature have taken action to address this burden on our businesses and are increasing our protection of retail workers. Thank you to our Governor, District Attorney, and business leaders for ensuring we are acting swiftly."

Assemblymember Catalina Cruz said, "This is the best example of what partnership in government should look like. We in the legislature passed the strongest retail theft legislation ever seen in New York, signed by the Governor, and now effectuated by city and state agencies to stop rampant crime sprees that not only rob our stores but our communities. I want to thank Governor Hochul, her state teams and agencies, and District Attorney Melinda Katz, for their hard work and commitment to protecting our businesses and neighbors from rampant and pervasive crime such as this."

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