WASHINGTON – In response to questioning from Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) at a hearing today, witnesses urged congressional action to address the nationwide scourge of organized retail crime and endorsed the Grassley-led, bipartisan Combating Organized Retail Crime Act.
The witnesses discussed the dangers of organized retail crime, including its ties to international criminal and terrorist syndicates. Grassley’s Combating Organized Retail Crime Act was cited as a “game changer,” given the legislation’s proposal to zero-in on criminal enterprises through commonsense penalties and multi-agency coordination.
The witnesses included:
Grassley’s opening statement is available HERE.
Video and excerpts of Grassley’s exchanges with the witnesses follow.
On the Combating Organized Retail Crime Act:
Grassley: “Ms. Stephan, you’re a strong supporter of my bill, [the Combating Organized Retail Crime Act] … How would this legislation improve the ability of both law enforcement and prosecutors like you to tackle organized retail crime?”
Stephan: “I believe that the [Combating Organized Retail Crime Act] would be a game-changer. [Despite] the 218 organized crime cases that our office has [prosecuted] in San Diego, we have not been able to break through to what is going on nationally. We know these groups are operating nationally and internationally … but the investigations stop at the local level.
“[Organized retail crime] is a national problem that’s draining economic resources from hardworking Americans. But, it’s also draining the heart and soul, and security of human beings. We have to be able to bring national solutions.”
On Transnational Criminal Organizations and Organized Retail Crime:
Grassley: “We know from Department of Homeland Security reports that cartels, terrorists and human traffickers either facilitate organized retail and supply chain crime or use its proceeds to finance other crimes. How are transnational criminal organizations using organized retail and supply chain crime to further their criminal activities?”
Glawe: “We have seen goods moving overseas. In Mexico, we [found] over 2,000 vehicles that ended up south of the border. We know that these stolen goods are going to West Africa and the Middle East … We know that the supply chains are interdicted with Lebanese Hezbollah. We’ve seen that with Hamas, and we know the Mexican drug cartels are involved with the goods going south of the border.
“A coordination center … to coordinate intelligence … and coordinate operations is critical. This committee is well aware of … the Counter Terrorism Center and Counter Proliferation Center. These centers provide a hub for informational and operational sharing and sharing and coordinating resources, as well as tactical level response. We know the successful model, and this bill would get us there.”
On Combating Organized Retail Crime through Aggregation:
Grassley: “Ms. Stephan, title 18 makes it a federal crime to transport stolen property with a value of $5,000 or more in interstate or foreign commerce. Supreme Court case law allows prosecutors to aggregate the value of stolen goods in a common scheme to reach that threshold. Why is aggregation of theft amounts important?”
Stephan: “Aggregation is critical because it distinguishes between somebody who is drug addicted who goes in to steal something like food … [and] separates them from the habitual organized criminals. It allows [prosecutors] to see the activity in totality and to be able to see the repeat offenses that form the structure of organized, habitual criminals. In California, we recently … made a change in Proposition 36 that allowed us to aggregate, and it’s already making a difference. [California] used to have criminals come in with a calculator to [steal] right under $950, thus leaving them at a citation misdemeanor level. That’s what caused all our products to become locked up, except the criminals that were committing the crimes.”
-30-