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South Bay authorities announce bust of million-dollar retail theft, gift card schemes

October 24, 2025
South Bay authorities announce bust of million-dollar retail theft, gift card schemes

SAN JOSE — South Bay law enforcement officials announced they have arrested a half-dozen people and recovered more than $1 million in merchandise stolen from major regional retailers, including Home Depot and Target, as part of an organized theft outfit that trafficked the goods online.

In addition to finding houses in the area filled to the brim with pilfered items including power tools and various housewares, the Santa Clara County Sheriff’s Office and District Attorney’s Office say they uncovered an accompanying phone and internet scam in which elderly victims were bullied into buying gift cards that the suspects used to increase their ill-gotten gains.

The confiscation of suspected stolen goods occurred Tuesday when the sheriff’s High Impact Team served five search warrants at homes, storage units and a warehouse spanning San Jose and Campbell, the sheriff’s office said in a news release Thursday. The agency described the locations as collection, storage, and distribution centers for the stolen items.

Five South Bay men and a man from Southern California were arrested in connection with an alleged theft operation that methodically shoplifted and stole items from Home Depot, Target, Lowe’s and Sprouts and pooled the contraband at the buildings that were searched this week.

An investigation launched in June reportedly determined that the stolen goods were sold online. The group also allegedly bolstered its inventory through a well-known scam in which they would coerce victims, usually elderly people, into paying fake debts or obligations by purchasing gift cards at the targeted retailers and transmitting the card information. Investigators say that was parlayed into daily hauls of upward of $10,000 in fraudulently obtained merchandise that added to the illicit stockpile.

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After the search warrants were served, deputies reported one house in San Jose contained more than a dozen truckloads of Home Depot merchandise occupying hallways and closets from floor to ceiling. They also reported recovering 100 totes filled with wine believed to have been stolen from Target stores.

The sheriff’s office said the $1 million value ascribed to the stolen goods is a low estimate pending a full inventory of “the overwhelming volume.”

“This case is one of the most significant takedowns of organized retail crime we’ve seen in Santa Clara County,” Sheriff Robert Jonsen said in a statement, adding that it was the largest theft haul recovered by the HIT unit since it was formed last year. “We’re not just recovering stolen goods — we’re protecting the vulnerable and restoring safety in our communities.”

The investigation into the alleged theft operation continues, and the sheriff’s office asks anyone with related information to contact [email protected].

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