RLP NEWS
Michelle Mack, 54, a California mother of three, has been ordered to pay $3 million in restitution after pleading guilty to orchestrating an extensive retail theft ring targeting beauty stores like Ulta and Sephora. Mack’s crime ring, dubbed the “California Girls,” stole millions of dollars’ worth of beauty products, which were later resold on her Amazon storefront.
The restitution will be distributed among Ulta, Sephora, and other affected retailers. As part of a plea deal reached last year, Mack forfeited her luxurious 4,500-square-foot mansion in Bonsall, California. The property, which includes a vineyard, chapel, and four-car garage, sold in December for $2.35 million. Proceeds from the sale, after clearing bank debts, will go toward the restitution. The remaining balance will be paid over time by Mack and her husband, Kenneth Mack, 60, according to California Attorney General Rob Bonta’s office.
Mack and her husband bought the Bonsall home in 2021 for $2.29 million. While it is unclear whether the property had an outstanding mortgage, it is also unknown how the restitution will be divided among the victims.
Although the theft ring primarily targeted Ulta stores, Sephora and other retailers were also affected. Both companies declined to comment on the case.
A Growing Issue in Retail Theft
While the $3 million restitution pales in comparison to Ulta’s reported $807.8 million net income in the first nine months of 2024, it represents a significant penalty in the context of retail theft cases.
David Johnston, Vice President of Asset Protection at the National Retail Federation, noted the increasing prevalence of large-scale organized retail crime in recent years. “Restitution for these crimes has only recently started reaching into the millions,” Johnston told CNBC. “This case reflects the substantial losses and complexity involved in prosecuting organized retail crime groups.”
Despite the restitution, experts say payments in cases like these rarely cover the total losses incurred.
The Operation and Its Fallout
Prosecutors revealed that law enforcement officials discovered over $300,000 in stolen goods at the Macks’ home, a small fraction of the estimated $8 million stolen by the crime ring since 2012. The operation spanned at least a dozen states and involved thefts at hundreds of stores.
Mack herself did not commit the thefts but instead recruited young women to shoplift high-value beauty products, which she sold at discounted prices online.
Last summer, Mack was sentenced to five years and four months in state prison, with her sentence delayed until January 9 to accommodate her responsibilities as a parent. Her husband, Kenneth, received the same sentence. Mack was also barred from visiting Ulta or Sephora stores.
At least nine additional individuals were charged in connection with the ring, underscoring the far-reaching nature of the operation.