SAN DIEGO — The San Diego County couple behind a nationwide retail crime ring that stole more than $8 million in beauty products has been ordered to pay millions of dollars in restitution to Ulta and Sephora.
National crime ring
Kenneth and Michelle Mack, residents of Bonsall, pleaded guilty in June for their involvement in the multi-state, complex retail crime enterprise.
The Office of California Attorney General Rob Bonta confirmed to CBS 8 that a judge ordered the Mack’s to pay more than $3 million in restitution to Ulta and Sephora.
Kenneth Mack was sentenced to five years and four months in state prison. Michelle Mack is expected to receive a similar sentence on January 9, Bonta’s office said.
Michelle Mack will serve her sentence in federal prison.
December 2023 raid
CBS 8 was the first to report on the multi-state scheme after learning about a search warrant at Michelle Mack's home in December 2023.
Officers and federal agents raided Mack's Bonsall residence on December 6, 2023.
Law enforcement "located and seized hundreds of parcels prepped for shipment that would be ultimately mailed at the local Post Office," reads the warrant.
Agents also found a "mini-store" of stolen goods and cosmetics worth approximately $350,000.
According to the search warrants, officers then discovered that Mack was the head of an Amazon Marketplace store that had listings for over 300 cosmetic items.
Reads the warrant, "The items listed for sale were nearly 50% off the actual retail price, which was included in the sales listing. This steep discount suggested the items were being fenced."
The investigation found that Mack's "Online Makeup Store" had documented nearly $2 million in sales in 2022.
Charges announced
California Attorney General Rob Bonta announced charges against the Mack's on February 16 and said the scheme targeted Ulta Beauty stores in 21 counties across the state including San Diego County, Orange County, Los Angeles County and Riverside County.
During the investigation, the Department of Homeland Security, California Department of Justice, USPS, CHP collaborated with retail crime teams from Ulta and Sephora.
Mack is accused of recruiting young women to steal beauty products from Ulta locations in 21 counties before selling them at a discount on her Amazon Storefront
“Ulta Beauty is proud to partner with the California Department of Justice and Attorney General’s Office on this investigation, and we are grateful for their commitment to this important issue,” said Dan Petrousek, Ulta Beauty's senior vice president of loss prevention.
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