Retailers, District Attorneys, Sheriffs and Police Applaud New Laws to Combat Organized Retail Crime and Money Laundering

Raleigh, NC (December 1, 2024) – Significant efforts to thwart the financial crimes of money laundering and organized retail theft become effective December 1, 2024. These new laws provide law enforcement and prosecutors more options to stop criminals engaging in these illicit activities in North Carolina and are being lauded by representatives of the North Carolina Retail Merchants Association (NCRMA), North Carolina Conference of District Attorneys (NC CODA), North Carolina Sheriffs’ Association (NCSA), North Carolina Association of Chiefs of Police (NCACP), the North Carolina Information Sharing and Analysis Center (NC ISAAC) and the Carolinas Organized Retail Crime Alliance (CORCA). These organizations, and the members they represent, applaud the passage of these new laws as another major step to combat these organized criminal networks and are committed to work together to prevent these crimes and make certain this criminal activity is prosecuted to the fullest extent of the law.

House Bill 495 “Revise Money Laundering/Retail Crime” was sponsored by Representatives Kevin Crutchfield (R-Cabarrus), Dudley Greene (R-McDowell) and Kristin Baker (R-Cabarrus). Senate Judiciary Chairs, Senators Danny Britt (R-Robeson), Warren Daniel (R-Burke) and Buck Newton (R-Wilson) ushered the bill through their Chamber. It was due to the diligent work of these legislators that ensured its passage through committee and unanimous, bipartisan floor votes in their respective chambers.

Effective December 1, a new money laundering law defines the offense as knowingly and willfully engaging in various activities involving proceeds from criminal activity or funds exceeding $10,000, to include:

• Acquiring, maintaining, concealing, possessing, transferring, or transporting the proceeds of criminal activity.
• Conducting, supervising, or facilitating transactions involving criminal proceeds.
• Investing, expending, receiving, or offering to engage with criminal proceeds.
• Financing or investing in activities intended to further criminal conduct.
• Using or attempting to use criminal proceeds to disguise their nature, location, source, ownership, or control.
• Using criminal proceeds to promote further criminal activity.
• Conducting transactions to avoid federal transaction reporting requirements.

Important updates to North Carolina’s law combatting organized retail theft also become effective December 1, as included in House Bill 495:

• Ensures an offender can be charged with ORC if caught by law enforcement before they transfer the stolen property for resell if there was the intent to do so and adds intent as grounds for the organizer, supervisor, financier, and leader.
• Removes the term “new” from the definition of retail property so that ORC applies to both new and used property with more high-end consignment stores being targeted.
• Clarifies ORC includes if the fence “buys” or “obtains” stolen property if, for example, the stolen property is exchanged for drugs.
• Adds an offense for switching price tags on items valued over $200.
• Modernizes the definitions of antishoplifting devices and product code to capture changes in technology.
• Clarifies three separate offenses for creating, affixing, or presenting a fraudulent price code.

“We appreciate the effort of the General Assembly and Governor Cooper to help North Carolina’s retailers by recognizing the prevalence and complexity of organized retail crime and financial schemes that burden retailers and customer alike,” said Andy Ellen, president and general counsel of NCRMA. “Continuing to update North Carolina laws to charge these career criminals with these serious crimes serves as a deterrent and an effective way to get these criminals out of our communities.”

“Our district attorneys welcome these new and enhanced tools to prosecute these financial crimes and in turn, maintain safe communities and a strong economy. As prosecutors, we must stand with our business communities and law enforcement to send a strong message to would-be thieves,” said District Attorney Seth Banks who serves as president of the NC Conference of District Attorneys.

“Organized retail crime rings are often involved in other criminal activity within the community, including money laundering, drug related crimes, and human trafficking, to name a few. Our 100 Sheriffs’ offices across the State recognize the seriousness of these crimes and are committed to working with others in law enforcement and district attorneys to put these brazen criminals behind bars,” Mike Roberson, president of the NC Sheriffs’ Association stated.

“Police chiefs place great emphasis on stopping organized retail crime rings and financial crimes because of its ties to the illegal drug trade and other illicit activity,” the North Carolina Association of Chiefs of Police said in a statement. “Our police chiefs don’t want this increased criminal activity to move into our cities and towns in North Carolina and are working collaboratively with retail loss prevention professionals, district attorneys and others in law enforcement to stop it.”

“As the nation’s attention has focused on organized retail crime and those related financial crimes like money laundering, NC ISAAC and its national network of fusion centers will support North Carolina’s local, state, and federal law enforcement agencies, law enforcement associations and major retail associations through information sharing and analytical support,” said NC ISAAC Director/Special Agent in Charge, Steven Holmes.

Financial crimes and organized retail theft are not only crimes against property, but crimes against people. These groups collectively applaud the passage of HB 495 which takes action to stop this activity and prevent it from happening in the future while protecting consumers and businesses in North Carolina.

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About the North Carolina Retail Merchants Association

The North Carolina Retail Merchants Association (NCRMA) is a nonprofit trade association organized in 1902 to improve the business climate for retailers in North Carolina. Over 100 years later, NCRMA remains the voice of the retail industry for North Carolina. NCRMA represents the interests of individual merchants before the General Assembly and serves as a vital link to state government. Its credibility lies in its longevity and commitment to serving the ever-changing needs of its members. The Association’s membership includes more than 25,000 stores from across the state whose business represents 75 percent of North Carolina’s retail sales volume. NCRMA serves both large and small retailers from multi-state chains to local “mom and pops” and all types of merchants including antique, apparel, art, automotive, book, carpet, department, drug, electronics, floral, furniture, grocery, hardware, jewelry, paint and variety stores. For more information, visit www.ncrma.org.

NCRMA Contact:  Andy Ellen, NCRMA President and General Counsel  –  919-832-0811 • andye@ncrma.org

 

About the North Carolina Conference of District Attorneys

The North Carolina Conference of District Attorneys was established as a state agency in 1983 under General Statute §7A-411, “to assist in improving the administration of justice in North Carolina by coordinating the prosecution efforts of the various district attorneys, by assisting them in the administration of their offices…”

The agency consists of, and is governed by Elected District Attorneys and has a staff in Raleigh to carry out their goals and objectives. Primary responsibilities of the Conference include, but are not limited to, the following: Prosecution Support, Executive Development, Research and Public Outreach. District Attorneys in educating the general public on issues surrounding impaired driving, domestic violence, victims’ rights and other issues. For more information, visit www.ncdistrictattorney.org.

NC CODA Contact:  Seth Banks, Prosecutorial District 35 District Attorney and President of NC CODA  –   robert.s.banks@nccourts.org

 

About the North Carolina Sheriffs’ Association

The North Carolina Sheriffs’ Association serves as the statewide voice for North Carolina’s 100 constitutionally elected sheriffs to protect, promote, preserve, and enhance the Office of Sheriff in North Carolina through education, training, and legislative initiatives that increase public safety and protect the rights of the citizens of North Carolina. For more information, visit www.ncsheriffs.org.

NCSA Contact:  Eddie Caldwell, Executive Vice President and General Counsel  –  919-459-1052 • ecaldwell@ncsheriffs.net

 

About the North Carolina Association of Chiefs of Police

The North Carolina Association of Chiefs of Police was created to provide a favorable environment in which the Chiefs of North Carolina may educate and improve themselves professionally; recognize outstanding achievements in their profession and association and its allied groups through researching and distributing information and maintaining a resource contact system of its members; conduct meetings; and retain competent counsel to advise and represent the membership and its interests. For more information, visit www.ncacp.org.

 

About the North Carolina Information Sharing and Analysis Center

The North Carolina Information Sharing and Analysis Center works with local, state and federal law enforcement agencies in the fight against terrorism and criminal activity by sharing information.
ISAAC develops actionable intelligence on immediate and emerging threats and shares it with its first responders, private sector, emergency management, critical infrastructure, and federal, state, local, and tribal partners in a timely manner. For more information, visit www.ncsbi.gov/NCISAAC.

NC ISAAC Contact:  Steven Holmes, NC ISAAC Director / Special Agent in Charge  –  919-716-1111 • sholmes@ncsbi.gov

 

About the Carolinas Organized Retail Crime Alliance

Launched in December 2015, CORCA is a partnership between law enforcement and retail loss prevention officers to combat organized retail crime in the Carolinas. It is a division of the Retail Consumer Alliance Foundation, within the North and South Carolina State Retail Associations and is supported by the retail associations along with the Carolinas Food Industry Council. CORCA was created to bridge communication between retailers and law enforcement – helping identify offenders and resolve organized retail crime cases in the Carolinas. For more information, visit www.corca.org.