A woman known as the "retail crime 'queenpin'" is facing five years in prison and millions in restitution.

A woman known as the "retail crime 'queenpin'" is facing five years in prison and millions in restitution.
A woman known as the "retail crime 'queenpin'" is facing five years in prison and millions in restitution.
  • A nationwide retail crime operation's leader will receive five years and four months in state prison and be required to pay millions in restitution.
  • In March, a CNBC investigation exposed the details of Michelle Mack's operation and revealed how law enforcement tracks stolen items from organized retail rings.
  • An investigation by the California Highway Patrol revealed that thieves stole from Ulta Beauty and other major retailers, with many of the items ending up for sale on Amazon, under the supervision of Mack, who oversaw a multi-million-dollar operation.

A leader of a nationwide retail crime organization that targeted major retailers is facing more than five years in a California prison.

A San Diego County Superior Court judge handed down a delayed sentence of five years and four months to Michelle Mack of Bonsall, California, on Thursday. The official setting of the sentence will take place in January.

Kenneth, her husband, was also given the same sentence and is currently imprisoned. As part of his plea bargain, he will be released after one year and then placed on probation and community service for the rest of his sentence.

The judge granted Mack permission to serve her sentence after her husband is released, so she can take care of their children. She was instructed not to leave the state or approach any Ulta or Sephora stores.

In addition to serving time in prison, the couple is also required to pay $3 million in restitution to Ulta and Sephora, as stated in the sentencing document.

CNBC Investigations: Selling Stolen

In Bonsall, a 4,500-square foot mansion, Michelle Mack managed her operation, which involved a network of approximately a dozen individuals stealing millions of dollars in merchandise from Ulta, Sephora, and other major retailers.

Last month, the Macks admitted guilt to conspiring to commit a crime and engaging in retail and petty theft, as well as possessing stolen property.

According to NBC 7 San Diego, attorneys for the Macks did not provide any comment.

In March, a CNBC investigation exposed the details of Mack's operation and revealed how law enforcement tracks stolen items from organized retail rings.

The "California Girls" theft group was led by Mack, who made millions reselling stolen items on the "Online Makeup Store" at a fraction of their typical retail price, investigators said. She and her husband were arrested in December.

Amazon sales records indicate that Mack made $1.89 million in cosmetics sales in 2022, and she had sold nearly $8 million through her storefront before it was shut down since 2012.

The site was shut down after the December arrests.

In an interview with CNBC, Ulta Beauty CEO Dave Kimbell discussed the negative effects of organized retail crime, stating that while the financial impact is significant, the human impact is even more important, affecting both employees and customers.

One of the defendants in the case involving the Macks and seven members of their crew has been sentenced to three years and four months in prison, while the cases against the others are still pending, according to court records.

This story was contributed to by Paige Tortorelli, Gabrielle Fonrouge, and Courtney Reagan of CNBC.

by Scott Zamost

Business News