First, “the Boosters” swipe a load of high-demand groceries from a big box store or local pharmacy chain. Then the tags and security devices are stripped and the stolen items are passed up the chain for sales and distribution by “Diverters,” who act as wholesalers.

Two alleged Rhode Island “Diverters” are now in custody and facing federal charges.

Law enforcement seized around 60,000 “stolen items” worth about $1.6 million and charged two men, from Cranston and Warwick, for their alleged connection to a “Rhode Island-based organized retail crime theft” ring responsible for raking in “roughly $12.3 million” in sales.

Federal prosecutors have charged Norman L. Cipriano, 52, of Warwick, and Patrick M. Vigneau, 59, of Cranston, 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,” according to the office of U.S. Attorney Zachary A. Cunha.

“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” Cunha said earlier this week. “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.”

The Diverters

According to Cunha, the U.S. Attorney for the District of Rhode Island, Cipriano and Vigneau served as “high-level wholesalers known within organized theft rings as Diverters.”

“Diverters often set up shell companies, own warehouses where stolen merchandise is shipped, and act as suppliers for small to mid-size retail chains,” according to prosecutors. “These organizations frequently utilize e-commerce marketplaces to promote and offer their goods and use unregulated third-party processors such as PayPal in order to avoid detection.”

Cunha’s office shared an organization flow chart, depicting the diverters’ role as second in command of the alleged theft ring.

His office described the seized goods as “primarily over-the-counter pharmaceutical products and cosmetics.” The theft ring allegedly “targeted retailers nationwide, and then resold the stolen goods in bulk to other retailers and private citizens,” according to prosecutors. Multiple search warrants have been executed in Warwick, Cranston, and Pawtucket by “agents and task force officers from the United States Postal Inspection Service, Homeland Security Investigations, and the Warwick Police Department.”

Prosecutors say they seized enough “stolen goods to fill three fully loaded 24-foot box trucks,” and have also “moved to freeze several bank and e-commerce accounts,” as well as “more than two dozen boxes in transit via UPS.”

“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.”

Special Agent in Charge Michael J. Krol called the “scale of this alleged theft organization … 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 Krol, who heads Homeland Security Investigations in New England. “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 Investigation

Cranston Police played a small role in the bust, just prior to Vigneau’s arrest.

“My department’s only involvement was to assist with the execution of the Federal search warrant in Cranston,” said Cranston Police Chief Col. Michael J. Winquist. “We did not participate in the preceding investigation.”

Warwick Police collaborated with federal investigators throughout the process.

“The Warwick Police Department is dedicated to collaborating with our state and local partners to fight organized retail theft,” said Warwick Police Chief Col. Bradford Connor. “This investigation highlights the various schemes aimed at defrauding businesses and citizens. 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.”

Cunha said “Chief Connor’s department was instrumental in this investigation.”

Theft Ring Hierarchy

Court documents describe theft ring’s alleged chain of command.

“Crew Bosses” allegedly provide lists of items to swipe from retail stores to the individuals on the lowest rung of the ladder called “Boosters.” The “Boosters” steal “high-demand, high-priced products” and then turn them over to “Fencers,” described by prosecutors as “middlemen who work between the Boosters/Crew Bosses and other individuals involved in the organization.”

“At the lowest level, individuals or groups known as boosters, are recruited to engage in the actual retail theft — shoplifting items to be passed on to the organization,” Cunha explained. “These are the folks that actually steal things from store shelves. In an organization like this, that theft isn’t random. The boosters will target specific items at the direction of a crew boss, who tells them what to steal, and pays them for their work, often in cash or cryptocurrency.”

The “Fencers” move the items to “Cleansers,” who are paid to strip retail and anti-theft stickers and devices from the stolen items. After “cleansing,” the items are shipped off to “Diverters,” like Cipriano and Vigneau.

“Diverters  act as wholesalers, salespeople, or coordinators of secondary sales, often times selling the stolen goods to small to mid-sized retail chains that in turn sell the products to consumers,” according to prosecutors. “In this matter, 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.”

Court records show that both Cipriano and Vigneau have criminal histories.

In 2005, Cipriano was convicted of conspiracy and receiving stolen goods in Rhode Island state court, and served six years. Then, in August 2013, he was also convicted of trafficking counterfeit goods in federal court and sentenced to 50 months in federal prison, according to court records.

In 1998, Vigneau was convicted by a federal jury 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, according to prosecutors, and was serving a term of federal supervised release at the time of his arrest.

“Based on an extensive, three-year investigation into this ring, federal agents last week executed multiple search warrants at locations in Pawtucket, Warwick, and Cranston,” Cunha said on Monday. “Those warrants uncovered vast quantities of stolen goods — again, primarily cosmetics and over the counter drugs, as you can see in the photograph from the Warwick location and likewise in Cranston.”

Cunha thanked a long list of law enforcement agencies for their help, as well as loss prevention personnel from Walmart, Stop & Shop, CVS, Home Depot, United Parcel Service, Amazon, and eBay.