In this article, the California mom who admitted to leading an organized retail crime ring that stole millions of dollars in beauty products from Ulta Beauty and Sephora for resale on Amazon will now have to reimburse those retailers as part of her punishment. Michelle Mack, who commenced her five-year prison term on Jan. 9 after being arrested outside San Diego in December 2023, was directed to pay $3 million in restitution to Ulta, Sephora, and several other retailers as per a plea deal she made with prosecutors last year.
As per the agreement, Mack, 54, surrendered her 4,500-square-foot mansion in Bonsall, California, which was sold in December for $2.35 million, according to property records. Any remaining funds from the sale, after settling bank debts, will be allocated towards restitution, with Mack and her husband Kenneth Mack, 60, expected to repay the balance gradually, as stated by the California Attorney General Rob Bonta’s office.
It remains uncertain if Mack had a mortgage on the property, although records show she initially bought it for $2.29 million in 2021. The distribution of the restitution among Mack’s victims is also unclear. While the crime ring she confessed to operating mainly targeted Ulta stores, it also stole from other retailers, including Sephora.
The restitution, when compared to the annual net income of retailers like Ulta, is likely a small fraction, but it still represents a modest windfall. Ulta declined to comment on the restitution, including its utilization or accounting in financial statements, but expressed appreciation for the collaboration with law enforcement in the investigation.
Sephora did not respond to a request for comment. David Johnston, from the National Retail Federation, noted that restitution for theft victims in retail is becoming more common, with amounts reaching the millions recently due to the rise in organized retail crime. He emphasized that restitution seldom fully compensates for a retailer’s lost income and can take years for defendants to repay the fines entirely.
Last year, felony charges were filed against Mack and her husband by Bonta, alleging their involvement in a large-scale retail crime ring that resulted in an estimated $8 million in stolen beauty products. Mack was not accused of directly stealing the products but was said to have recruited young women to do so for resale on her Amazon store. The investigation, led by the California Highway Patrol, exposed the intricate workings of retail crime rings and how they exploit online platforms to sell stolen goods.
