The U.S. Department of Justice (DOJ) has charged members and associates of an Armenian organized crime ring with orchestrating a sophisticated scheme that resulted in the theft of over $83 million worth of goods from Amazon. The operation spanned multiple years and involved the diversion of truckloads of merchandise intended for Amazon warehouses.
Modus Operandi
According to the DOJ, the criminal group established and operated four transport carriers—AK Transportation, NBA Holdings, Belman Transport, and Markos Transportation—that contracted freight routes through Amazon Relay, a platform connecting truckers with delivery assignments. Instead of delivering the goods to their designated destinations, the individuals involved would divert shipments, offload portions of the cargo, and either resell the items or distribute them among associates. The stolen merchandise included high-demand products such as smart TVs, kitchen appliances, and other electronics.
Law Enforcement Action
In a coordinated effort, federal authorities conducted raids across Southern California and Florida, leading to the arrest of 13 individuals connected to the crime ring. The charges against the suspects encompass a range of serious offenses, including attempted murder, kidnapping, illegal firearm possession, and healthcare fraud. Investigators seized electronic devices containing evidence of the stolen goods, further substantiating the allegations.(ABC7 Chicago)
Amazon’s Response
Amazon has expressed its commitment to combating organized retail crime (ORC) and has implemented various measures to prevent such incidents. The company utilizes advanced detection and prevention technologies across its operations to identify and mitigate ORC schemes, including cargo theft and the resale of stolen goods. Additionally, Amazon collaborates with law enforcement agencies to hold perpetrators accountable and has referred numerous ORC cases to authorities, resulting in arrests and product recoveries. (About Amazon)
Broader Implications
This case highlights the growing challenge of cargo theft within the retail industry, with experts estimating annual losses related to such crimes to be close to $1 billion or more. The involvement of organized crime syndicates underscores the need for enhanced security measures and interagency cooperation to protect supply chains and ensure the integrity of retail operations.
As the legal proceedings unfold, authorities are expected to continue their efforts to dismantle the criminal network and recover additional stolen assets. The case serves as a stark reminder of the vulnerabilities within the logistics and retail sectors and the importance of vigilance in safeguarding against such illicit activities.
Amazon Trailer Picture on Flickr by Eastleighbusman
