Department of Justice officials charged members and associates of an Armenian organized crime ring with stealing over $83 million worth of Amazon cargo. The criminals impersonated legitimate truck drivers to siphon goods meant for Amazon warehouses.
Since 2021, at least four individuals linked to the group executed a scheme across California, stealing truckloads of items including smart TVs, GE icemakers, SharkNinja vacuums, and air fryers, according to the DOJ.
“At present, Amazon is plagued by recurring thefts of its shipments, which is commonly referred to as ‘cargo theft,’” the complaint states.
Amazon has increased its efforts to identify and shut down fraudulent and illegal activity on its platform. Stopping the sale of stolen goods remains a major challenge. In 2023, CNBC reported Amazon suspended dozens of third-party sellers accused of selling stolen merchandise, though many claimed they were unknowingly involved, threatening their businesses.
Cargo theft isn’t limited to Amazon. Experts estimate losses from this crime approach $1 billion annually.
The DOJ complaint explains the suspects operated four transport carriers — AK Transportation, NBA Holdings, Belman Transport, and Markos Transportation — which secured freight contracts via Amazon Relay, an app that truckers use to find loads.
Each driver is assigned to pick up freight from a manufacturer’s warehouse and deliver it to an Amazon facility. Instead, prosecutors say the groups diverted from their routes, removing some goods to resell or gift to associates.
In some cases, these “self-styled carriers” delivered shipments to Amazon warehouses days after the scheduled dates, the complaint adds.
DOJ agents seized the suspects’ iPhones, uncovering photos and videos of warehouses stacked with crockpots, Keurig coffee machines, keratin shampoo, Weber grills, and other products.
Amazon collaborated closely with the DOJ, sharing details on stolen items and suspect accounts on its marketplace.
An Amazon spokesperson said the company has “zero tolerance” for cargo theft and organized retail crime. Amazon uses a combination of internal teams and technology to combat these schemes and has referred “thousands” of bad actors to law enforcement.
“These referrals have led to arrests, product seizures, recoveries, and the dismantling of ORC networks in the U.S. and worldwide,” the statement said.
DOJ officials also connected the defendants to additional alleged crimes, including attempted murder, kidnapping, illegal firearm possession, and health-care fraud. Several of the 13 defendants are set to appear in Los Angeles district court this week, while one appeared in a Fort Lauderdale court on Tuesday and was detained.
