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conuly
Baby formula a popular target for shoplifters
Baby formula has become a big target for Twin Cities shoplifters, who resell it on the black market, say law enforcement officials and an expert on organized crime.
The formula is sold cut-rate to unscrupulous shopkeepers - who get reimbursed by the federal government for much of the formula they sell - and may be used by drug dealers to cut their product.
"It is a gigantic problem for retailers," said Chuck Miller, a security consultant to national retail trade groups such as the Food Processors Association. "There is a huge market for baby formula."
Authorities said three alleged shoplifters whose flight from a Target store in suburban Woodbury last weekend left three bystanders hospitalized may be part of the ring.
Terry "Domino" Scott, 36, Dennis Ellison, 40, and a 35-year-old third man - all of St. Paul - are all in jail facing charges stemming from Saturday's incident, in which the trio are accused of stealing several dozen cans of formula.
Scott was charged Tuesday in Ramsey County with three counts of criminal vehicular operation in a car crash that happened after the theft. Dennis Ellison faces theft charges in Washington County, and charges are still being decided for the third man.
Each of the men has been charged with stealing baby formula before. State and local records show their involvement in at least six other cases in Ramsey, Washington, Anoka and Dakota counties since 2002.
Miller said Scott and Ellison and the third man fit the profile of "boosters," professional shoplifters who steal formula and other products for a fence, who either sells it up the chain or repackages it. Criminal operations will often strip the expiration dates from the cans and resell them to small retailers, Miller said.
Those retailers make money at both ends, Miller said, because they buy the illegal formula cheap and then get reimbursed from the government at the full rate every time they sell a can. Since 55 percent of the nation's infants receive federal aid, the black market formula trade is extremely lucrative.
Miller said retailers lose roughly $30 billion a year to organized theft.
Large rings have recently been uncovered in Arizona, Washington, Texas, New York and Ohio.
Scott and the third man's most recent caper occurred June 29 in Eagan, when they were arrested and charged with felony theft after allegedly pilfering more than $900 worth of baby formula from a Cub Foods store.
In that case, police said Cub Foods managers called them after watching one of the suspects grab a cart, head for the baby formula, load the cart and leave the building. His accomplice took the cart, and the two then drove off in a green Ford Taurus. They were caught soon afterward, police said.
The whole story is surreal.
Baby formula has become a big target for Twin Cities shoplifters, who resell it on the black market, say law enforcement officials and an expert on organized crime.
The formula is sold cut-rate to unscrupulous shopkeepers - who get reimbursed by the federal government for much of the formula they sell - and may be used by drug dealers to cut their product.
"It is a gigantic problem for retailers," said Chuck Miller, a security consultant to national retail trade groups such as the Food Processors Association. "There is a huge market for baby formula."
Authorities said three alleged shoplifters whose flight from a Target store in suburban Woodbury last weekend left three bystanders hospitalized may be part of the ring.
Terry "Domino" Scott, 36, Dennis Ellison, 40, and a 35-year-old third man - all of St. Paul - are all in jail facing charges stemming from Saturday's incident, in which the trio are accused of stealing several dozen cans of formula.
Scott was charged Tuesday in Ramsey County with three counts of criminal vehicular operation in a car crash that happened after the theft. Dennis Ellison faces theft charges in Washington County, and charges are still being decided for the third man.
Each of the men has been charged with stealing baby formula before. State and local records show their involvement in at least six other cases in Ramsey, Washington, Anoka and Dakota counties since 2002.
Miller said Scott and Ellison and the third man fit the profile of "boosters," professional shoplifters who steal formula and other products for a fence, who either sells it up the chain or repackages it. Criminal operations will often strip the expiration dates from the cans and resell them to small retailers, Miller said.
Those retailers make money at both ends, Miller said, because they buy the illegal formula cheap and then get reimbursed from the government at the full rate every time they sell a can. Since 55 percent of the nation's infants receive federal aid, the black market formula trade is extremely lucrative.
Miller said retailers lose roughly $30 billion a year to organized theft.
Large rings have recently been uncovered in Arizona, Washington, Texas, New York and Ohio.
Scott and the third man's most recent caper occurred June 29 in Eagan, when they were arrested and charged with felony theft after allegedly pilfering more than $900 worth of baby formula from a Cub Foods store.
In that case, police said Cub Foods managers called them after watching one of the suspects grab a cart, head for the baby formula, load the cart and leave the building. His accomplice took the cart, and the two then drove off in a green Ford Taurus. They were caught soon afterward, police said.
The whole story is surreal.
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no subject
Date: 2004-09-22 03:16 pm (UTC)Too many people use programs like WIC and AFDC to get free formula w/ their vouchers, and then return them for money.
What happens to the kids? Well, sometimes they are given plain old cow's milk, or the formuala which is actually used gets severely watered down so it will last longer.
So, if your kid usually goes through 5 cans per week, you can get the kid to use 2 or 3, then the rest is returned to the store for money.
The ex-wife of my mom's best friend's son used to do that all the time. Her kids were skinny & sickly until they started on solid foods & then were fed sodas & junk.
WIC will remove your children from the program once they reach a certain age, and if they are in good health. So, this trashy ex-wife unnecessarily hospitalized her firstborn by claiming false symptoms the doctors couldn't diagnose JUST SO she could stay on WIC longer and keep getting free formula.
no subject
Date: 2004-09-22 03:18 pm (UTC)Oh god no. If I were that poor, I might try this scam, but at least I'd breastfeed instead of letting my kids suffer.
no subject
Date: 2004-09-22 03:20 pm (UTC)Remember: while not all poor people are on drugs, poverty and addiction are all-too-frequent bedmates.
no subject
Date: 2004-09-22 03:22 pm (UTC)And those poor kids are going to be hurt no matter what, so.
no subject
Date: 2004-09-22 03:34 pm (UTC)My sister and I used to talk about Lisa all the time. "What is she DOING?" We thought the same thing: if she's going to scam people, then she should at least breastfeed, but Lisa was afraid her tits would sag. I swear.
Dayna knew Lisa & used to try & get her to do the right thing, but Lisa could get money for diapers, clothes, candy, or whatever by turning in the forumula & that was more important to her.
Scum.
no subject
Date: 2004-09-22 03:40 pm (UTC)You should've falled child services on her if she was neglecting her kids like that. Well, it's over now.
no subject
Date: 2004-09-22 06:11 pm (UTC)She went on to have 2 other kids...
She's divorced from my mom's best friend's son (former drug addict) and she's cleaned herself up, as well, and has remarried, so things are hopefully better for the kids now. We don't hear from her anymore.
no subject
Date: 2004-09-22 07:10 pm (UTC)no subject
Date: 2004-09-22 04:36 pm (UTC)One guy even emptied it out and filled the cans with the powdered milk from the bulk section.
no subject
Date: 2004-09-22 07:11 pm (UTC)no subject
Date: 2004-09-22 11:39 pm (UTC)There's WIC for those that can't afford it. Without that, there's no way I could have. Before I could start giving Lucas cereal, he was going through 13 cans a month.
I know what you are talking about!
Date: 2004-09-23 04:40 am (UTC)Because of this, our Loss Prevention department has turned into the Gestapo and are instituting all manner of security measures. You have to have a pass for ANY container, even an empty soda bottle. If you take such stuff past the gate without a pass, YOU ARE FIRED. Soon, they will be searching all bags and boxes and they are setting up an RFID passcard system.
I feel like I'm working at a diamond mine.. sheesh.
When will they start body cavity searching?
no subject
Date: 2004-09-24 11:17 am (UTC)no subject
Date: 2004-09-22 03:16 pm (UTC)Too many people use programs like WIC and AFDC to get free formula w/ their vouchers, and then return them for money.
What happens to the kids? Well, sometimes they are given plain old cow's milk, or the formuala which is actually used gets severely watered down so it will last longer.
So, if your kid usually goes through 5 cans per week, you can get the kid to use 2 or 3, then the rest is returned to the store for money.
The ex-wife of my mom's best friend's son used to do that all the time. Her kids were skinny & sickly until they started on solid foods & then were fed sodas & junk.
WIC will remove your children from the program once they reach a certain age, and if they are in good health. So, this trashy ex-wife unnecessarily hospitalized her firstborn by claiming false symptoms the doctors couldn't diagnose JUST SO she could stay on WIC longer and keep getting free formula.
no subject
Date: 2004-09-22 03:18 pm (UTC)Oh god no. If I were that poor, I might try this scam, but at least I'd breastfeed instead of letting my kids suffer.
no subject
Date: 2004-09-22 03:20 pm (UTC)Remember: while not all poor people are on drugs, poverty and addiction are all-too-frequent bedmates.
no subject
Date: 2004-09-22 03:22 pm (UTC)And those poor kids are going to be hurt no matter what, so.
no subject
Date: 2004-09-22 03:34 pm (UTC)My sister and I used to talk about Lisa all the time. "What is she DOING?" We thought the same thing: if she's going to scam people, then she should at least breastfeed, but Lisa was afraid her tits would sag. I swear.
Dayna knew Lisa & used to try & get her to do the right thing, but Lisa could get money for diapers, clothes, candy, or whatever by turning in the forumula & that was more important to her.
Scum.
no subject
Date: 2004-09-22 03:40 pm (UTC)You should've falled child services on her if she was neglecting her kids like that. Well, it's over now.
no subject
Date: 2004-09-22 06:11 pm (UTC)She went on to have 2 other kids...
She's divorced from my mom's best friend's son (former drug addict) and she's cleaned herself up, as well, and has remarried, so things are hopefully better for the kids now. We don't hear from her anymore.
no subject
Date: 2004-09-22 07:10 pm (UTC)no subject
Date: 2004-09-22 04:36 pm (UTC)One guy even emptied it out and filled the cans with the powdered milk from the bulk section.
no subject
Date: 2004-09-22 07:11 pm (UTC)no subject
Date: 2004-09-22 11:39 pm (UTC)There's WIC for those that can't afford it. Without that, there's no way I could have. Before I could start giving Lucas cereal, he was going through 13 cans a month.
I know what you are talking about!
Date: 2004-09-23 04:40 am (UTC)Because of this, our Loss Prevention department has turned into the Gestapo and are instituting all manner of security measures. You have to have a pass for ANY container, even an empty soda bottle. If you take such stuff past the gate without a pass, YOU ARE FIRED. Soon, they will be searching all bags and boxes and they are setting up an RFID passcard system.
I feel like I'm working at a diamond mine.. sheesh.
When will they start body cavity searching?
no subject
Date: 2004-09-24 11:17 am (UTC)