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Federal Crackdown Uncovers $83 Million Amazon Cargo Theft Scheme

In a sweeping federal investigation, the U.S. Department of Justice (DOJ) has charged 13 individuals tied to an Armenian organized crime network accused of orchestrating a massive cargo theft scheme targeting Amazon. The alleged operation, which ran across California and beyond since 2021, involved hijacking truckloads of high-value merchandise — including consumer electronics, kitchen appliances, and beauty products — resulting in losses exceeding $83 million.

Sophisticated Fraud Masquerading as Logistics

According to the DOJ, the accused fraudsters posed as legitimate trucking companies to gain access to Amazon’s internal freight system, known as Amazon Relay. This platform allows third-party carriers to bid on and fulfill transportation contracts for goods being moved between manufacturers and Amazon warehouses.

The crime ring operated at least four fake transportation entities: AK Transportation, NBA Holdings, Belman Transport, and Markos Transportation. These companies were used to win contracts under false pretenses and then divert shipments en route to their destinations. Prosecutors say that instead of delivering products to Amazon fulfillment centers, the group rerouted the goods to their own warehouses for resale on the black market or for personal distribution.

What Was Stolen?

Photos and videos retrieved from the defendants' seized iPhones showed evidence of massive stockpiles of stolen goods, including:

• Samsung and LG Smart TVs
• GE ice makers
• SharkNinja vacuums
• Air fryers and crockpots
• Keurig coffee machines
• Keratin shampoo
• Weber grills

Authorities believe these items were either sold through underground channels or gifted within the crime network. In some cases, trucks showed up to Amazon warehouses days late, with only partial loads, further fueling suspicions.

Amazon and Federal Authorities Join Forces

Amazon, which has been increasingly targeted by cargo theft rings, cooperated with federal investigators to help dismantle the operation. The retail giant provided critical data, including digital activity and account information related to the alleged criminals. A spokesperson from Amazon declined immediate comment but confirmed ongoing collaboration with law enforcement.

Cargo theft has become a growing challenge for major retailers. Experts estimate industry-wide cargo theft losses surpass $1 billion annually in the U.S. alone. Amazon itself has suspended dozens of third-party sellers in the past for peddling what it later identified as stolen goods — though some merchants claimed they were unaware of the products’ origins.

A Trail of Additional Criminal Activity

The charges don’t stop at cargo theft. Several defendants are also linked to violent crimes and other illegal operations, including:

• Attempted murder
• Kidnapping
• Illegal possession of firearms
• Healthcare fraud

Thirteen individuals have been charged. Some appeared in a Los Angeles court earlier this week, while one suspect was detained after appearing in Fort Lauderdale, Florida.

What This Means for the Industry

This case underscores a larger issue plaguing supply chains — vulnerabilities in contractor logistics and tracking systems. It also highlights the increasing sophistication of criminal networks that exploit legitimate freight channels for large-scale theft. With Amazon expanding its delivery infrastructure, and the continued rise of e-commerce, preventing such fraud has become a growing priority for logistics and retail firms alike.

Federal officials say the investigation is ongoing and more arrests may follow.