A Pittsburgh man has been convicted for his role in an interstate fencing operation that involved the sale of stolen retail items through his resale businesses. Durrell Waters, 41, was found guilty by a federal jury on five counts, one for conspiracy and four for money laundering, following a trial presided over by Chief United States District Judge Mark R. Hornak, according to an announcement by the United States Department of Justice.
The trial, lasting over two and a half weeks, revealed that from 2013 to 2016, Waters exploited his resale outlets—Trader Electronics, Last Call Entertainment, and The Outlet—to orchestrate the sale of stolen goods online including health and beauty aids, over-the-counter medications, and new-release DVDs, store identification and security stickers still intact. "Durrell Waters and his conspirators brazenly used their second-hand stores as a front for fencing massive amounts of shoplifted retail products—some with the store identification and security stickers still intact—that they then turned around and sold for millions of dollars to online customers across the United States," U.S. Attorney Olshan stated, as detailed by the press release. The perpetrators relied on individuals grappling with drug addiction who would shoplift for resale at these stores, fueling a vicious cycle of crime and abuse.
According to the United States Department of Justice, Waters's retail havens were a hub for "boosters," known shoplifters often battling addiction, who would queue up outside his stores to unload stolen goods for quick cash, allegedly with Waters's full knowledge and at times with him aiding their release from incarceration for related arrests. Waters's primary Amazon storefront alone accumulated over $4.3 million in proceeds through this scheme, underscoring the operation's financial magnitude and its impact on legitimate commercial enterprises.
This case also highlights a troubling exploitation of the opioid crisis, as desperate individuals deep in the throes of addiction were used as pawns in Waters's scheme. The investigation was a collaborative effort involving various law enforcement agencies such as the IRS, FBI, U.S. Postal Inspection Service, and local Pittsburgh Police Departments, they worked in concert to dismantle a conspiracy that has now seen the conviction of Waters and the plea of his co-defendant Anthony Costanzo, who awaits sentencing later in the year.
With Waters's sentencing yet to be scheduled, the law stipulates that he could face up to ten years in prison and a $250,000 fine for each money laundering count. The conspiracy charge could result in five years and a fine of $250,000 or twice the illegal gains of the offense. Costanzo, 35, of Carnegie, Pennsylvania, has pleaded guilty to monetary transactions involving property from unlawful acts, with his sentencing scheduled for December 17. The prosecution of this case is being handled by Assistant United States Attorneys James R. Wilson and Benjamin C. Dobkin.
