Two Arrested in Commercial Theft Ring

Los Angeles - Two people were arrested in connection with a commercial theft ring that stole more than $6 million in drugs and baby and beauty care products from major retailers including Wal-Mart, Target, Ralphs and Vons, police announced on Thursday.

The so-called Hernandez Organization allegedly "fenced" stolen items from Los Angeles "booster" crews -- teams of shoplifters who stole goods from department stores, supermarkets and pharmacies, said Officer Rosario Herrera of the Los Angeles Police Department.

"The Hernandez criminal enterprise is believed to be responsible for more than $6 million of stolen retail merchandise during just the past several months," Herrera said.

He said the stolen items included infant formula, diapers, health and beauty products, hair care products and over-the-counter medications.

Small businesses and swap meet vendors are suspected of buying some of the stolen goods.

Herrera said detectives responded to advertisements stating the organization would buy all types of infant formula. Undercover officers eventually met with members of the organization.

"During the meetings, several transactions were completed in which the members of the enterprise purchased thousands of dollars of what was believed to be stolen baby formula," Herrera said.

Undercover officers were later able to identify "several critical Hernandez members and locations where stolen merchandise was stored," Herrera said.

Six arrest and 15 search warrants were issued, resulting in two arrests so far, police said.

Also, multiple accounts showing hundreds of thousands of dollars of transactions during the past several months are being seized at four banks.

Those arrested were booked on suspicion of grand theft, commercial burglary, receiving stolen property, conspiracy, wire fraud and money laundering, with more arrests expected, police said.