Crime Ring Accused of Stealing $83M in Amazon Cargo

Some posed as truck drivers to enroll with Amazon as carriers.

Transcript

The problem with being the biggest game in town is that you have a lot to lose.

The U.S. Attorney’s Office in Central California recently issued a press release detailing the activities of a crime syndicate that targeted one of the country’s largest retailers – Amazon – in a scheme that involved a lot of stolen goods.

Officers in Florida and California are said to have arrested 13 alleged members and associates of Armenian organized crime syndicates.

Most Read on IEN:

The individuals are being charged in five different federal complaints but the one involving Amazon is said to comprise millions in stolen cargo.

According to the California DA, the group is a “Russian mafia-affiliated transnational criminal organization” that has been operating a crime ring out of Los Angeles. 

One such operation involved group members posing as truck drivers to enroll with Amazon as carriers. 

After receiving the goods, the group members allegedly diverted some or all of the shipments that were destined for Amazon warehouses.

Reports say the DOJ seized the individuals' phones and found “photos and videos of warehouses lined with boxes of crockpots, Keurig coffee machines, keratin shampoo, Weber grills and other goods.”

Amazon reportedly provided an estimate of $83 million in stolen goods credited to the scheme.

Reports say Amazon is, at present, “plagued by recurring thefts of its shipments” and while it has ramped up its efforts to track down illegal behavior, cargo theft is still a particularly widespread activity.

In fact, CNBC said that, industry-wide, “cargo theft-related losses are estimated at close to $1 billion or more a year.”

Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.

More in Video