Montco Authorities Say They Broke Up A Multi-County Retail Theft Ring

NORRISTOWN, PA — Authorities in Montgomery County say they have broken up a multi-county organized retail theft ring in which the defendants employed drug-addicted individuals to steal a wide array of items from major big box chain stores for resale.

The Montgomery County District Attorney's Office said Friday they made five arrests in connection with the retail theft ring, which targeted stores like Lowes and Home Depot in Montgomery, Berks and Lehigh Counties.

"This was a high-volume organized retail theft ring that caused the targeted businesses to suffer significant losses, both through the thefts themselves and through the loss of customers who bought the stolen merchandise from the defendants," Montgomery County District Attorney Kevin Steele said in a statement.

Steele's office said there were a total of five arrests in the case, but only two of those defendants were named: Joseph A. Payea, 67, and Penelope L. McClain, 49, both of Macungie, Lehigh County.

The county's investigation began late last year after Lower Pottsgrove Township Police determined that some recent retail thefts in that Montogomery County municipality were not isolated acts but instead were being committed by a network of individuals acting together to steal various items, the DA's Office stated.

Investigators ultimately determined that Payea and McClain were the alleged leaders of the corrupt organization and would use social media or text messages to provide shopping lists of desired items to a group of people suffering from substance use disorder, who would then turn around and steal the merchandise from the retail stores.

Some of the stolen items included high-end name brand power tools, generators and electrical wire.

Prosecutors said the items would then be resold at below market value, often between 60 and 80 percent of market value, using social media and through both personal sales and "mud" sales, which are sales often held at places like local fire companies that are designed to raise money for certain causes.

The DA's Office said that the two named defendants would pay cash for the stolen items — usually offering up between 40 to 50 percent of the retail value — and that the sub-operators of the organization would then turn around and purchase drugs such as heroin and fentanyl with the cash in order to feed their addiction.

Steele, the district attorney, said at one point, the two named defendants made more than $50,000 in one day's sale of stolen items at a local mud sale.

"That is a significant loss for any business to withstand on an ongoing basis," Steele said in his statement. "Additionally, the fact that the corrupt organization was using individuals suffering from addiction is unconscionable and furthered their addition to poisons."

Steele said the investigation was widespread, and involved law enforcement personnel from Montgomery County, Lehigh County and the Pennsylvania State Police, and also the loss prevention departments from the individual retail stores that were hit in the theft ring.

Investigators used physical surveillance, fixed surveillance, cellphone call detail records, cell site analysis, search warrants and undercover buys of the stole merchandise, according to the DA's Office.

Steele's office said that at the time of the arrests of Payea and McClain, search warrants that were executed produced large numbers of power tools, most of which were new, and still in unopened, store-packaged boxes.

Investigators seized more than 500 tools and tool components, about 50 chainsaws, 67 spools of electrical wire, and other items, with the total estimated retail value of the items coming in at just under $100,000.

Payea and McClain were both charged with operating a corrupt organization, conspiracy, dealing in the proceeds of unlawful activities, organized retail theft, criminal use of a communications facility, receiving stolen property, criminal solicitation to commit retail theft and other charges.

Bail for Payea and McClain was set at $500,000 and $250,000 respectively.

A preliminary hearing has been scheduled for June 15 before Magisterial District Judge James P. Gallagher.