Authorities in Los Angeles recently uncovered a massive stolen-goods operation, recovering nearly $4 million in merchandise that was allegedly swiped by an organized theft crew.
According to KTLA 5 Morning News, an “extensive investigation” into two members of a South American crime ring steered detectives toward several storage unit facilities in San Fernando Valley.
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After serving these storage facilities with search warrants, detectives uncovered millions of dollars in stolen goods — including tequila, coffee, shoes and clothing, as well as bitcoin mining computers that are collectively worth roughly $2.7 million.
The operation was led by the LAPD’s Commercial Crimes Division, Cargo Theft Unit with support from the L.A. World Airport Police, Union Pacific Police Department and the L.A. Port Police.
“This case highlights the ongoing collaborative efforts among law enforcement agencies to combat cargo theft and protect the integrity of commercial transport operations,” officials stated in a press release published by KTLA 5 Morning News. “The investigation remains ongoing, and additional arrests may follow.”
Cargo theft in the Los Angeles area
The two alleged ringleaders of the South American organized theft operation — Oscar David Borrero-Manchola, 41, and Yonaiker Rafael Martinez-Ramos, 25 — were reportedly arrested following the served search warrants.
Martinez-Ramos was taken into custody on a no-bail warrant and remains behind bars, while Borrero-Manchola was charged with receiving stolen property but was released, according to police.
This substantial bust reportedly comes on the heels of several other recent cargo thefts in the area. R & R Transport Services, a trucking company based in California, reportedly had trailers stolen from its lot three times in the month of April. The company was able to track down the stolen trailers and an arrest was made in one of the cases.
Earlier this year, authorities recovered about $600,000 worth of container chassis that was stolen from the Port of Los Angeles. And while one man was arrested in connection to the theft, the investigation reportedly remains ongoing.
And in 2023, the California Highway Patrol announced arrests of 40 suspects connected to a statewide cargo theft ring. The crew was reportedly responsible for stealing more than $150 million in goods, including $50 million in merchandise, 13 gold bars and $550,000 in cash, as well as 20 stolen cargo trailers and several firearms.
Carge theft cases in the U.S. skyrocketed to nearly $455 million in losses in 2024, a whopping 27% increase from the previous year.
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How cargo theft affects consumers
Unfortunately, the ripple effects of organized retail and cargo theft often land squarely on the shoulders of consumers. As cargo theft removes millions of products from the supply chain, retailers are increasingly passing those losses along in the form of higher prices on everyday items.
One of the factors that leads to this is increased insurance premiums. When retail companies are hit with cargo theft, insurance companies often increase the premiums for transporting and storing goods. In order to maintain profitability, said retail companies will then factor the added cost of insurance into their prices.
Cargo theft also has the ability to disrupt the flow of goods, which can lead to delays and shortages of the products that were stolen. And, unfortunately, higher prices often follow as the lack of supply forces consumers to scramble for alternatives.
The cost of recovery is also a factor that encourages retailers to pass their losses on to consumers. Cargo theft forces retailers to take on the financial burden of replacing the stolen items, which in turn increases their expenses.
Stolen cargo also encourages retailers to boost their security measures, which adds to a retailer’s operational costs and forces them to look to consumers to make up for this expense.
But beyond the checkout line, cargo theft can also threaten local jobs. Retailers hit hardest by repeated losses may be forced to cut employee hours, downsize staff or shutter locations entirely.
There’s also the growing danger of fraud. Many of the stolen goods end up on unregulated resale websites, exposing consumers to fraudulent transactions, defective products or even counterfeit merchandise.
According to the National Retail Federation, retail theft cost U.S. retailers about $112 billion in 2022. And as we just laid out, more crime at the warehouse level can eventually mean more pain at the checkout line for shoppers.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
