A father-daughter team of thieves who sold their ill-gotten products online were sentenced to more than five years in federal prison each for their roles in the scam.
Robert Whitley – aka "Mr. Bob" – 70, of Atlanta and his daughter Noni Whitley, 47, sold millions of dollars worth of stolen retail products through their online businesses, Closeout Express and Essentials Daily Discounts.
“These crimes impact not only the retailers, but every consumer,” said Acting U.S. Attorney Kurt R. Erskine. “Organized retail crime and other massive frauds have become more common through online platforms. We and our law enforcement partners will continue to seek out and prosecute these criminal enterprises.”
“The Whitleys are now paying the price for inflicting financial harm to legitimate small businesses and consumers affected by those businesses losses,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are committed to working together to protect consumers and businesses from these types of crimes.”
According to information presented in court, between approximately January 2011 and November 2019, Robert and Noni operated an organized retail crime operation (“ORC”) in Atlanta through several entities, including Closeout Express and Essentials Daily Discounts.
An ORC operation refers to a professional shoplifting, cargo theft, or retail crime ring, or other organized crime occurring in a retail environment. Robert Whitley was the owner and operator of Closeout Express. Noni worked with her father and helped operate and manage their ORC operation.
Closeout Express and Essential Daily Discounts operated from a warehouse and several residences in Atlanta. The defendants relied on “boosters” – who are essentially professional shoplifters – to steal specific retail products or categories of items, including over-the-counter medications (e.g., Prilosec, Nexium, Rogaine, and Claritin), shaving razors, oral care products, and health and beauty aids. The boosters stole these products from various retailers, national drugstore chains, and national supermarket chains throughout metro Atlanta, including CVS, Kroger, Publix, Target, and Walgreens.
The boosters would typically bring the stolen product in large trash bags to Closeout Express’s warehouse in southwest Atlanta. Robert and Noni paid the boosters in cash for the stolen product. The investigation revealed that Robert and Noni Whitley paid dozens of boosters to steal product over the years.
Closeout Express sold the stolen retail products – at below retail or even wholesale cost – mainly online at its own websites and through various online e-commerce platforms, including the Amazon Marketplace, the Walmart Marketplace, and the Sears Marketplace. In exchange for a monthly fee or some percentage of the sales, these platforms permit third-party sellers to establish “online storefronts” to sell new or used products on a fixed-price online marketplace alongside these companies’ regular offerings.
Through these two online storefronts, Closeout Express processed more than 30,000 orders.
While in operation, Robert and Noni Whitley sold stolen retail product valued at more than $6.1 million.
Robert was sentenced to five years, 10 months in prison to be followed by three years of supervised release. He previously pleaded guilty to one count of interstate transportation of stolen property.
Noni was sentenced to five years in prison to be followed by three years of supervised release. She previously pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property.
Both defendants were also ordered to pay $4,348,762.90 in restitution to the victim retailers.