00:00Today's hearing addresses the continued rise in organized retail and supply chain
00:09crime and the criminal networks that are involved in that criminal activity. We've
00:17all seen videos of mobs ransacking stores of thousands of dollars of goods and
00:23and doing it in a very short period of time. Somebody measured one time two
00:31minutes. The reality is some of the worst criminal organizations, including cartels,
00:39terrorists, and human traffickers, use this type of crime funding their misdeeds
00:46or launder ill-gotten proceeds. These groups steal large quantities of
00:54merchandise from retail stores and the supply chain, then attempt to resell these
01:01stolen items online through and through other illicit channels. One Homeland Security
01:11investigation operation called King of Thieves, uncovered organized retail crime
01:19ring, which had sent millions of dollars in criminal proceeds overseas. That same
01:27group financed coyote fees for deported individuals to return to the United States.
01:34Earlier this year in Katy, Texas, law enforcement discovered that mall thieves were linked to cartels
01:46responsible for over $100 million in thefts across the United States. So far, law enforcement officials
01:55have linked 98 individuals to this ring. This threat has evolved to our supply chains, exposing
02:07significant vulnerabilities. The Justice Department recently indicted 11 defendants, including nine
02:16illegal immigrants, with stealing nearly half a million dollars worth of Nike shoes. The defendants
02:25knew valuable goods were in the train cars based on visible, high security locks. The defendant cut the air hose to the train's
02:39braking system, which can cause derailments and serious injuries. Criminals see this type of crime as a low risk, very high reward way to fund their
02:54their enterprises with no regard for the people that they endanger. It's not just luxury goods these thieves are after. Items in food and beverage
03:06categories 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 grocery
03:23basic groceries. Once a seal is broken. Once a seal is broken and a single pallet of goods is stolen, the entire container is no longer safe for consumption.
03:35Congress must treat these acts for what they are. They're acts of violent, sophisticated criminals exploiting a patchwork system.
03:47Efforts to address this sweeping problem through civil actions are insufficient. Criminal action must be met with criminal punishment.
03:59Federal coordination is needed to share information, promote collaborative investigations, and fully address this sweeping cross jurisdictional crime that impacts all Americans.
04:15Homeland security investigators estimate that the average American family will pay more than $500 annually in additional costs due to the impact of organized retail crime.
04:31This is one of the many reasons 38 states' attorneys general support Senator Cortez Mastos and my bill. The bill goes by the title of
04:45Combating Organized Retail Crime. Many of the signatories on this letter are from members of this committee's home state. They wrote, quote,
04:58This legislation would provide the necessary resources at the state and federal level to bring organizations and individuals behind this nationwide problem to justice, end of quote.
05:12So without objection, I'll enter the letter into the record.
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