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Online auctions called real steal - Fencing ring sold pricey items on eBay, state says

Investigators raided two storefront businesses and four homes in Chicago and a nearby suburb Wednesday to break up a lucrative fencing operation in which valuable items stolen from major retailers were sold on eBay, authorities said.

A spokeswoman for the Cook County state's attorney's office said five people were arrested and charged with receiving stolen property, a felony.

Investigators said they could face additional charges, including the online sale of stolen merchandise, electronic fencing and computer fraud.

Assistant State's Atty. John Mahoney said the accused used the name "buyersdrm" to peddle their wares at the online auction site and raked in about $600,000 this year alone. Investigators said they believe the operation started in 2000.

They had a 100 percent positive rating with hundreds of customers, according to information found on eBay, with one buyer calling them "very responsible, quick and trustworthy."

Another buyer beamed: "Wow! This is the best deal I've ever gotten on eBay. This seller is for real!"

Investigators said the buyers, who had no way of knowing the items were stolen, will not face prosecution.

"It's sad. They're just innocent buyers," said Hank Ribich, an investigator with the state's attorney's office.

As of late Wednesday, 11 items remained for sale from "buyersdrm." An eBay representative said they wouldn't close the account until investigators ask them to do so.

Authorities said the ring operated out of two pawnshops, Cash Inn at 6 S. Cicero Ave. and Fast Cash at 5422 W. North Ave. Investigators said they searched related homes--including one in Addison--after tracing the addresses from P.O. boxes used as part of the alleged scheme.

Law-enforcement officials at the North Avenue location Wednesday said the front of the business appeared to be a dusty resale shop, but in the back, there was a room full of gleaming new houseware products, all in their original boxes.

Investigators said both businesses are licensed secondhand stores, though they are not permitted to sell new items. Law-enforcement officials said they learned the shops previously bought goods taken from Sears, Target, Marshall Fields, Carson's, The Great Indoors, J.C. Penny and Nordstrom.

Jennifer McNamara, a spokeswoman for Macy's, would not give details about the Chicago-area thefts, other than to say her company is cooperating with the state's attorney's office--the lead investigators in the case--and with local law-enforcement agencies.

McNamara said that her company uses sophisticated technology to prevent people from stealing but that they can't catch everyone.

"We are continually reviewing our methods and using extensive training and security procedures to prevent theft in our stores," McNamara said.

But that didn't stop someone from allegedly pilfering its high-end goods.

Police at the North Avenue location hauled away a van full of electronics and pricey home goods, including $350 blenders from KitchenAid and vacuums from Dyson. They also removed several large, flat-screen televisions, home stereo equipment, DVDs, digital cameras and other items, including cash.

Police netted similar items at the other locations, but law-enforcement officials said they would not know the value of all they seized until it's all inventoried.

"There's another three weeks of work to go before it goes any further," Ribich said.

Police arrested and charged Mike Pirozzoli of the 1700 block of North 21st Avenue in Melrose Park, Javier Rodriguez of the 400 block of Mildred Avenue in Glen Ellyn, Ralph Cataudella of the 2300 block of West Belden in Chicago, and John and Joanne Cataudella of Addison. John and Joanne are married, and Ralph is John's cousin, authorities said. The investigation is ongoing, Mahoney said.

A spokeswoman from the state's attorney's office said Pirozzoli and Rodriguez worked at the Fast Cash location on West North Avenue. The Cataudellas worked at Cash Inn on South Cicero Avenue, she said.

All are scheduled to appear in Bond Court at 1 p.m. Thursday.

Investigators were tipped off to the alleged crime ring when representatives from Macy's and Target approached them about a large number of items stolen from their Chicago-area stores.

According to court records, Macy's representatives said that in speaking with a number of shoplifters, they discovered many were taking their goods to Cash Inn and Fast Cash, selling them for a small profit before the goods were placed on the Internet for sale.

Investigators learned the alleged fencing operation was particularly interested in iPods, Dyson vacuum cleaners, KitchenAid mixers, All-Clad pots and pans, CDs, DVDs and 300 thread-count bedsheets, according to court documents.

Investigators sifted through trash bins behind the Cash Inn and found "numerous labels, price tags and other identifiers" from what they believed to be stolen items, the documents said.

Catherine England, a spokeswoman for eBay, said she would not elaborate on Wednesday's raid. She said that once her company discovers fraud, it notifies all buyers related to each case, and sometimes advises them on pursuing further action.

England said there's no way her company can verify the authenticity of its items, because the company never takes physical possession of the goods it sells.

"The best thing you can do as a buyer is to pay safely when you purchase an item," she said, recommending PayPal and credit cards. "Those forms of payment offer consumers protection should something go wrong."

She said eBay can't take much action against a fraudulent seller beyond banning them from the Web site.

"But the reality is, if you're a bad guy, you're not going to lose too much sleep about being kicked off eBay," she said. "At the end of the day, law enforcement has a much bigger stick than we do," she said.

The online giant has a staff of 2,000 people who work on security and safety. Some develop online security tools, while others review listings. Others serve as liaisons with local law-enforcement agencies.

Founded in 1995, eBay has 212 million members around the world and 105 million items listed on its site. Six million new items are posted every day.

 

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