Theft ring estimated to have netted roughly $12.3 million dollars in sales
PROVIDENCE, R.I. — An investigation led by Homeland Security Investigations (HSI) New England and the U.S. Postal Inspection Service led to the arrest of two Rhode Island men described in court documents as high-level members of an organized retail theft crime ring.
As reflected in court documents, it is alleged that Norman L. Cipriano, 52, of Warwick, and Patrick M. Vigneau, 59, of Cranston, are high-level wholesalers within a massive organized theft ring. Cipriano and Vigneau are charged by way of federal criminal complaints with interstate transportation of stolen goods, conspiracy to commit interstate transportation of stolen goods, money laundering, conspiracy to commit money laundering and engaging in monetary transactions in property derived from unlawful activity.
HSI special agents, U.S. Postal Inspectors and Warwick Police seized approximately 60,000 stolen items, primarily over-the-counter pharmaceutical products, cosmetics, and household goods worth an estimated $1.6 million dollars from four locations connected to Cipriano and Vigneau as part of their investigation. Through multiple search warrants in Warwick, Cranston, and Pawtucket, Rhode Island, the seized stolen goods filled three fully loaded 24-foot box trucks. Investigators have also moved to freeze several bank and e-commerce accounts and have seized more than two dozen boxes in transit via UPS.
It is alleged that, over the last four years, this Rhode Island-based organized retail crime theft has netted roughly $12.3 million dollars in sales and operated throughout the United States.
“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” remarked U.S. Attorney Zachary A. Cunha. “In addition to imposing higher prices on legitimate retail consumers, theft rings like this one put unsuspecting customers at risk from damaged, expired or adulterated goods, and impose untold economic costs. Today’s arrests and the disruption of this network reflects the kind of tenacity and dedication that this Office and our partners will continue to bring to bear to combat this type of brazen criminality.”
“The scale of this alleged theft organization is simply astonishing. Special agents and officers seized tens of thousands of stolen items valued at over $1.6 million, but this represents only a snapshot of this alleged scheme,” said HSI New England Special Agent in Charge Michael J. Krol. “HSI is proud to work alongside our federal, local, and private industry partners to unravel this organization. Organized retail theft is not a victimless crime and when theft groups undermine international commerce and the supply chain, we all pay.”
“The U.S. Postal Inspection Service is committed to dismantling organized retail theft,” said Ketty Larco-Ward, Inspector in Charge of the Boston Division for the Postal Inspection Service. “These criminals use the U.S. Mail to ship the stolen items to unsuspecting customers who assume they are purchasing legitimate goods from a reputable online seller. The impact of this type of crime is more than just using the mail for illegal gain. This crime has significant negative impact on businesses, retailers, and public safety. The U.S. Postal Inspection Service along with our law enforcement partners, will continue to pursue criminals who victimize postal customers and bring them to justice.”
“The Warwick Police Department is dedicated to collaborating with our state and local partners to fight organized retail theft. This investigation highlights the various schemes aimed at defrauding businesses and citizens,” said Colonel Bradford Connor of the Warwick Police Department. “The joint efforts of the United States Postal Inspection Service, Homeland Security Investigations, and the U.S. Attorney’s Office were crucial in bringing these individuals to justice and dismantling this organized crime ring.”
Court documents allege that organized theft rings operate by dividing responsibilities among various individuals. At the first stage, these rings employ individuals known as “boosters,” led by crew bosses who provide them with lists of items to be stolen from retail outlets, most often high-demand, high-priced products. The stolen items are then turned over to “fencers,” middlemen who work between the Boosters/Crew Bosses and other individuals involved in the organization. Fencers move the items to “cleansers” who strip retail and anti-theft stickers and devices from the stolen items prior to them being shipped off to “diverters.” Diverters act as wholesalers, salespeople or coordinators of secondary sales, oftentimes selling the stolen goods to small- to mid-sized retail chains that in turn sell the products to consumers.
It is alleged that stolen and cleaned merchandise was turned over to Cipriano and Vigneau in their roles as Diverters. The defendants, allegedly operating under the names of various shell companies, and working with others, sold large volumes of stolen merchandise via e-commerce sites such as eBay, Walmart, and Amazon. In order to avoid detection, unregulated third-party processors, such as PayPal, were used, tied to bank accounts controlled by the defendants.
According to court records, Norman L. Cipriano was convicted in Rhode Island state court in 2005 and served a term of six years of incarceration for conspiracy and receiving stolen goods. Additionally, Cipriano was convicted in federal court in August 2013 on a charge of trafficking counterfeit goods and was sentenced to 50 months in federal prison.
Patrick M. Vigneau, was convicted by a federal jury in March 1998 on charges of engaging in a continuing enterprise, possession with intent to distribute marijuana, and conspiring to commit money laundering. He was released from federal prison in 2020 and is currently serving a term of federal supervised release.
The matter is being investigated by the U.S. Postal Inspection Service, HSI New England’s Providence Resident Agent in Charge office, and the Warwick Police Department.
HSI offices in Springfield, Massachusetts; Hartford, Connecticut; and New Haven, Connecticut, assisted in the investigation. Significant investigative support was provided by Customs and Border Protection; the Cranston Police Department; the Pawtucket Police Department; the Providence Police Department; the Newport Police Department; the East Providence Police Department; the Portsmouth Police Department; the Rhode Island State Police; the Rhode Island National Guard; the Naperville Police Department in Illinois; the Wilmette Police Department in Illinois; and the California Highway Patrol.
Loss prevention personnel from Walmart, Ahold Delhaize (Stop & Shop), CVS, Home Depot, United Parcel Service, Amazon, and eBay provided assistance to law enforcement.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Members of the public can report suspicious activity, including organized retail crime, by calling the toll-free tip line at 877-4-HSI-TIP.