Prepared Opening Statement by Senator Chuck Grassley of Iowa
Chairman, Senate Judiciary Committee
Beyond the Smash and Grab: Criminal Networks and Organized Theft
Tuesday, July 15, 2025
Today’s hearing addresses the continued rise in organized retail and supply chain crime, and the criminal networks involved.
We’ve all seen videos of mobs ransacking stores of thousands of dollars of goods in less than two minutes.
The reality is some of the worst criminal organizations – including cartels, terrorists and human traffickers – use this type of crime to fund 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 or through other illicit channels.
One Homeland Security Investigations operation, called King of Thieves, uncovered an 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 mall thefts were linked to a cartel responsible for over $100 million in theft across the United States.
So far, law enforcement officials have linked 98 individuals to this ring.
This threat has evolved to our supply chain, exposing significant vulnerabilities.
The Justice Department recently indicted 11 defendants, including nine illegal immigrants, with stealing nearly $500,000 worth of Nike shoes.
The defendants knew valuable goods were in the train cars based on visible high security locks.
The defendants cut the air hose in the train’s braking system, which can cause derailments and serious injuries.
Criminals see this type of crime as a low risk, high reward way to fund their enterprises, with no regard for the people they endanger.
It’s not just luxury goods these thieves are after.
Items in the food and beverage category are among the most stolen in supply chain crime.
These goods are transported in specific ways to maintain food safety.
From infant formula to basic groceries, once the 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 – acts of violent [performed by] 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 Investigations estimates 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’ attorneys general support Senator Cortez-Masto’s and my bill, the Combating Organized Retail Crime Act.
Many of the signatories on this letter are from members of this Committee’s home states.
They wrote, “This legislation would provide the necessary resources at the state and federal level to bring the organizations and individuals behind this nationwide problem to justice.”
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