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Business

Michelle Mack gets 5 years for $8M organized retail theft ring

The mastermind of an organized retail theft ring, dubbed the “California Girls,” that targeted high-end makeup firms Ulta Beauty and Sephora received a delayed sentence of more than five years in prison and fined $3 million, according to court documents.

Michelle Mack, 53, a married mother of three young girls, was arrested with her husband, Kenneth, 60, in December in their 4,500-square-foot, $2.75 million mansion in Bonsall, outside San Diego, which has a vineyard and a chapel that the couple rented out as a wedding venue on Airbnb, according to an NBC report.

Law enforcement found more than $300,000 worth of stolen goods at their home, according to prosecutors — a fraction of the estimated $8 million the duo stole since 2012.

Michelle Mack headed up one of biggest organized crime rings selling stolen makeup. CNBC

The couple pleaded guilty last month and her husband was sentenced to five years and four months in San Diego County Superior Court on Thursday.

Michelle Mack’s faces the same jail stint when she is sentenced Jan. 9, 2025.

At least nine others were charged in the elaborate scheme.

Michelle Mack can’t withdraw her guilty plea before her sentencing. She has been ordered not to go near any Ulta Beauty or Sephora stores, and not to contact any co-defendants other than her husband, state officials said.

Investigators referred to the ring as the “California Girls” as they hit hundreds of stores across the state — and 10 others — and resold the goods on Amazon via their “Online Makeup Store.”

The Macks will not be in prison at the same time since they are parents of minor children. Family Handout
Kenneth Mack along with his wife pleaded guilty to felony charges in June. CNBC

Since the pandemic, organized retail theft has plagued businesses across the country, especially in California, where progressive laws only jail shoplifters who swipe more than $950 worth of goods.

Ulta Beauty CEO Dave Kimbell told CNBC earlier this year that the “financial impact is real” from organized retail theft.

The couple’s brazen operation included a “mini store” of beauty products, sunglasses and designer bags inside their garage where they packaged goods and shipped them off to customers.

Their scam brought in $1.89 million in 2022, according to Amazon sales records provided to investigators, CNBC reported.

The site has been shut down.

In March, California Attorney General Rob Bonta filed 140 felony charges against Michelle Mack and her husband, including conspiracy to commit organized retail theft, grand theft and receipt of stolen property.

Law enforcement raided the Macks’ $2.75 million home — which has a vineyard — in December. CNBC
The Macks’ garage held what investigators described as a “mini-store” of stolen goods they would ship to customers across the country. California Highway Patrol

The Macks originally pleaded not guilty.

“This is a multimillion-dollar criminal scheme. It was complex. It was orchestrated,” Bonta said in announcing the charges. “We are not talking about garden-variety shoplifting.”

The crime ring was busted in part because of incriminating texts between the couple and their team of shoplifters.

“I’m not stealing regular I’m going to start filling up my bag quick. So I want to know stuff I can grab in bulks too,” defendant Kimora Lee Gooding texted Mack on Jan. 7, 2023.

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