Last Updated on January 28, 2025
In 2017, California enacted new theft laws to ensure those who shoplifted could only be charged with a misdemeanor or infraction, whereas prosecutors previously filed felony burglary charges against shoplifters. After the law was changed, most offenders qualified for a diversion program, allowing them to avoid having a conviction appear on their criminal record. While these efforts were effective in helping to reduce the state’s prison population, organized gangs of criminals unfortunately took advantage of the reformed retail theft laws. They encouraged members of their theft rings to steal up to $950 worth of goods, which they would then return to the store or resell for profit. In response, California created a new law to help address the problem of organized retail theft.
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What is Organized Retail Theft?
When two or more people work together to coordinate on stealing and returning or reselling items from merchandisers for a profit, it is organized retail theft. Many of these crime rings are part of more extensive criminal networks, and most of these operations are pre-planned, large-scale efforts involving multiple thieves, known as “boosters,” and “fences” who resell the stolen goods.
These coordinated efforts harm retailers far more than one-off thefts from individual shoplifters. Sometimes these theft rings even perform dramatic and dangerous stunts, such as coordinated smash-and-grabs at multiple locations across the city or arson attacks used to distract from looting incidents.
Organized Retail Theft Law
Under Penal Code 490.4 (PC), there are three ways a person can legally be considered part of an organized retail crime operation:
- Working with others to steal merchandise from one or more shops or an online marketplace, intending to return, exchange, or sell the goods
- Acting with others to receive, purchase, or store knowingly stolen merchandise
- Participating in the operations of a coordinated theft network by recruiting, coordinating, organizing, supervising, directing, managing, or financing other participants
In other words, you can be charged with this offense if you participate in an organized retail theft crime syndicate, whether you operate as a fence, a thief, a recruiter, a reseller, or in any other role.
What is the Sentence for Organized Retail Theft in California?
Penalties for this crime vary based on the aggregate (meaning overall total) value of the stolen merchandise. When under $950 worth of merchandise was taken, the offense is a misdemeanor, punishable by up to a year in jail, which is more than twice the penalty for first-time shoplifting or petty theft offenses.
If the total value of this offense was over $950, the offense is a wobbler, meaning it can be a misdemeanor or felony. As a misdemeanor, these charges are punishable by up to one year in jail. When felony charges are filed under 490.4 (PC), the offense is punishable by up to three years of prison.
In cases where the total amount of stolen goods is estimated to be above $50,000, those accused of this crime can face a high-value enhancement that adds a full year of prison time to their sentence. This enhancement also applies if the organization caused more than $50,000 of property damage during the thefts. Higher sentencing enhancements can be applied for even larger criminal organizations responsible for over $200,000, $1,000,000, or $3,000,000 in theft or damage, adding up to four years of sentencing to a conviction.
Regardless of the level of charges an individual is charged with, they can also be subjected to a retail crime restraining order, meaning they must avoid all of the retailer’s locations for the following two years. Exceptions are considered for those living in areas with limited numbers of shops of that type to ensure individuals still have access to make purchases necessary to survive. Failure to abide by the terms of this restraining order is a misdemeanor, punishable by up to one-year imprisonment.
What are the Best Defenses to This Charge?
Those convicted of a misdemeanor are typically best off working with their attorney to enroll in a diversion program, as this will help them avoid jail time and keep the offense off their record. Those who are ineligible for diversion still have options available to them though.
Prosecutors have a lot of discretion while charging people for crimes, so sometimes a defense attorney may convince them only to file charges against the organizers and leaders of a theft ring and either file no charges or just shoplifting charges against those who took the goods. This option is more likely if the thieves were part of an easily exploited group, such as juveniles or unhoused individuals. Sometimes, a plea bargain is the best option as it can result in someone facing only misdemeanor, rather than felony charges, if a large amount of property was stolen.
In other cases, it can help to fall back on one of the more common defenses used in criminal cases based on the input of your defense attorney. Depending on the circumstances of your case, you may be able to argue that you were the victim of illegal search and seizure, that the prosecution lacks sufficient evidence to prove the charges, that you are the victim of false allegations from someone involved in the crime, or that you were unaware the merchandise was stolen when you stored or sold it.
Regardless of your case’s specifics, always speak with a criminal lawyer before speaking to the police. It is far too easy to say something while trying to defend yourself, only for it to be used against you later. For example, you can’t say you are the victim of false allegations and never met the other people accused of participating in the syndicate, only to claim later you didn’t know the items were stolen.
Like other criminal activities related to organized crime, those accused of this offense often face other charges as well. For example, those alleged to have committed organized retail theft are likely to face gang crime enhancements if it is believed the larceny benefited a street gang.
Perhaps the most common charges faced by those charged with organized retail theft are shoplifting and possession of stolen property. If the individuals involved were accused of creating a hazard, such as starting a fire, they may also face looting, vandalism, or arson charges.
Lastly, those previously subjected to a retail theft restraining order for a particular establishment may be charged with violating the order if they entered the retailer again to commit additional crimes.
If you have been accused of any type of theft crime, you need a criminal defense attorney as soon as possible. Anyone accused of retail theft in San Diego should immediately call lawyer Peter M. Liss at (760) 643-4050 to schedule a free initial consultation.
