Can You Use Baby Formula to Make Drugs
Formula for Theft Success: Steal Food For a Babe
Baby formula heists take become a federal upshot.
Apr 13, 2011 — -- Infant formula has become such a hot article amongst sophisticated theft rings that it's been called "liquid gold."
The scale of baby formula shoplifting is and then vast that information technology has go an interstate trouble, drawn in the FBI and Immigration and Customs Enforcement, and forced concatenation stores to install elaborate anti-theft devices. Federal legislation has even been introduced that would make stealing baby formula subject to federal racketeering laws.
Information technology is a problem on both coasts and hits small stores as well large chains.
"Grocery chains will tell you that formula is targeted so often that in some cases they accept locked it up, moved it behind the greenbacks register, strategically put it on the floor and in some cases, they put a limited supply on the shelves," said Joe LaRocca of the National Retail Federation.
Ed Paczkowski'south family has run a grocery store in Southward Amboy, N.J., for 82 years. His part overlooks the infant formula aisle.
"We've had information technology stolen quite a few times," Paczkowski, 73, said. He fifty-fifty watched a theft concluding month.
"I saw a guy by the formula...suddenly I see him accept two big cans...I saw him jiggle around where he put them in his glaze...then he came dorsum and took two more," Paczkowski said.
On a grander scale, the "Hernandez Group" reportedly operated an organized retail theft ring for four years in California and Oregon, stealing $2.5 1000000 in infant formula from Safeway stores until police busted the ring in December 2010, according to court documents.
The FBI defines organized retail theft every bit a theft ring that crosses country lines and involves the trafficking of at least $v,000 worth of goods. Concluding year, $xv billion to $30 billion were lost by retail stores from organized retail theft, according to the NRF.
In each type of store, different products are targets of theft rings. Hardware stores find it's usually ability tools and drill bits that are lifted, while article of clothing stores have a hard time hanging on to their denim, and drug stores see razor blades and diabetic strips walking out of their stores.
"In the large spectrum of retail criminal offence, babe formula is i of the top items," LaRocca said.
Baby Formula Targeted By Retail Theft Rings
The baby food powder has go a formula for organized criminal offense because information technology sells at prices ranging from $15 to $30 a can, a relatively expensive item that can give theft rings a skillful profit.
"The criminal groups are looking for products they can steal and they know based on marketplace conditions, they can flip those products speedily and in a secondary market brand 30 to 80 cents on the dollar depending on where they liquidate the coin," LaRocca said.
Drug dealers sometimes utilize the powdered formula to dilute heroin and methamphetamine or to stretch the production when supplies run low.
However, experts say that more often than not, formula is stolen because of its high marketplace need among consumers rather than drug dealers.
"The black market place mirrors the legitimate market. Things needed by legitimate customers ofttimes fuel what these groups steal," said Rhett Asher from the Food Marketing Establish.
There are other dangers in formula theft also the economic loss to stores. Baby formula, which has a shelf life, can end up in rodent infested, hot warehouses. Thieves might even fudge expiration dates to resell the formula.
"Improper storage conditions can potentially bear on the nutrient content or physical appearance of babe formula, which could impact the product's nutritional value and safety besides every bit potentially threaten an infant'southward health," said Robert Rankin of the International Formula Council.
Rankin and others are calling for national legislation that targets organized retail theft and in particular the theft of infant formula. In March, a grouping of Senate Democrats introduced legislation to crack down on the the theft of infant formula, prescription drugs and medical devices. Legislation would make the theft of formula a violation of federal racketeering laws.
Several federal agencies are already targeting the theft of formula through their own task forces. ICE'south Homeland Security Investigations unit launched a pilot program targeting organized retail theft rings in 2009.
Feds Behave Out "Operation Milk Money"
"Operation Milk Money" has been one of their most successful busts to appointment. In January of this year, the unit arrested ix people in conjunction with a baby formula theft ring involving a Union City, Due north.J., grocery store called Los Hermanos run by three brothers.
From September 2010 to December 2010, the Siyam brothers allegedly arranged for the commitment of stolen infant formula to their store. People living in N Carolina and Pennsylvania stole formula throughout the South and so it was bought and resold by the Siyam brothers, U.S. attorneys allege.
Prosecutors allege that the Siyams earned at least $135,000 in profits from the formula.
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Source: https://abcnews.go.com/US/baby-formula-targeted-organized-retail-theft-rings/story?id=13293485
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