UPDATE: D&D Daily Exclusive
 

Barnes & Noble Heads Up $7.1 Million ORC Investigation

 

Three members of a suburban Northbrook family were arrested and charged with interstate transportation of stolen property following an alleged 10-year shoplifting spree. The defendants, together with a cooperating individual who acted as their “fence,” sold merchandise with a retail value of $7.1 million through eBay accounts over the last decade, according to a federal criminal complaint announced yesterday. The defendants, Branko Bogdanov, 58; his wife, Lela Bogdanov, 52; and their daughter, Julia Bogdanov, 34, were arrested by Secret Service agents yesterday afternoon at their residence on Weller Lane in Northbrook, IL. They were each charged with interstate transportation of stolen property in a criminal complaint that was filed in U.S. District Court. All three appeared before U.S. magistrate Judge Michael Mason.

According to documents, the case originated after Barnes & Noble stores experienced significant losses in Lego and American Girl product. A Barnes & Noble Senior Investigator, Glenn Justus, found a suspected seller of the product using the ORC Workbench by ORC Solutions. Glenn interviewed the suspected seller, who admitted to selling millions of dollar of product that was stolen by the Bogdanov family. That seller later became a Cooperating Individual for the Secret Service. The Barnes & Noble investigative team then initiated contact with the Secret Service and brought in other affected retailers such as Toys R’ Us. Many of the affected retailers had amassed video of the group that had been stealing over the past few years. The PROACT division of eBay was also consulted and assisted with compiling evidence for the United States Secret Service.

Documents further show that all three of the Bogdanovs had a history of retail theft, but in different parts of the country. Search warrants were executed yesterday and over 300 stolen items with an estimated retail value exceeding $25,000 was recovered. The Bogdanovs defeated many of the typical anti-theft measures like spider wraps and keeper boxes, because they possessed specific anti-lock devices allowing them to remove the security measures without activation. Lela Bogdanov utilized a specially made skirt that allowed her to quickly conceal multiple items without detection. The Bogdanov family worked in concert to steal effortlessly, taking a systematic approach; Branko Bogdanov would remove the anti-theft device, Julia would serve as a lookout and assist gathering merchandise and distract employees. Both Branko and Julia would serve as a physical and visual barrier to limit observation of Lela's theft activities.

Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. There are currently no federal ORC Laws on the books and the NRF Legislative Committee has been working with Congress and retailers to add organized retail crime to Title 18.