Lincoln County man indicted for retail theft scheme [Hickory Daily Record, N.C.]

Oct. 26--CHARLOTTE, N.C. -- A former businessman was arrested Wednesday for his role in a scheme that the U.S. attorney's office said took in more than $16 million worth of stolen property.

Steve Hale, 64, was indicted on 30 federal charges, according to the U.S Attorney's Office for the Western District of North Carolina. The charges against Hale are the result of an investigation that began in September 2010 into the buying and selling of stolen non-prescription drugs and health and beauty products.

The indictment names Hale as the sole owner and operator of Double D Distributing, LLC, a business located at a warehouse at 6661 Denver Industrial Park Road in Denver. He maintained homes in Catawba County and Punta Gorda, Fla., according to the indictment.

From about 2006 to March 2011, the indictment alleges professional shoplifters known as boosters committed large-scale retail theft of thousands consumer products and sold the stolen goods to people known as first-level fences.

Bonnie Bridges, Kimberley Morris, Michael Morris, Darlene Schoener, William Schoener and Darryl Brock were sentenced in January to prison terms ranging from 18 to 36 months for their part in the scheme as first-level fences, according to the U.S. attorney's office.

Hale acted as a second-level fence and accepted delivery of bulk quantities of stolen products from first-level fences, the indictment states. The products were delivered to Double D Distributing in plastic garbage bags, boxes and plastic containers.

Hale and his employees removed store security stickers and adhesives on the products, packaged the products into plain brown boxes and shipped the products to Hale's customers, according to the indictment. Hale sold products at prices of up to 52 percent below wholesale prices on the legitimate market.

The indictment states Hale did not require documentation of the legitimate purchase of products by first-level fences, nor did he provide first-level fences with documentation of his purchases from them. He and his employees used coded documents to track quantities of the products, the indictment states, and employees routinely shredded records relating to Hale's purchases of the products.

The indictment refers to an email Hale sent on March 7, 2007 complaining that "over 45 pieces of assorted medicine had stickers, glue on it or store names that were rubbed off ... This is a major problem ... Please let me know how we can correct it ...."

Hale allegedly shipped stolen products from North Carolina to Florida.

Hale is also charged with filing false income tax returns and failing to properly collect and pay federal income taxes for employees.

On his income tax returns for tax years 2006, 2007 and 2008, the indictment states Hale listed gross receipts or sales that were substantially less than the actual amounts.

During tax years 2007 to 2010, the indictment states Hale failed collect, truthfully account for and pay federal income taxes and Federal Insurance Contribution Act taxes on employee wages for one of his employees at Double D Distributing.

The indictment states property Hale derived from the scheme is subject to forfeiture. Property that he may have to forfeit includes a money judgment of $8.2 million; more than $300,000 seized during the investigation; a Mercedes recreational vehicle; a Toyota Prius; and properties in Terrell, Brevard, Denver, and Mooresville.

Hale was released on bond after an initial appearance Thursday in Federal Court in Charlotte, according to the U.S. attorney's office. He was ordered to home detention with electronic monitoring and was prohibited from working in the wholesale goods business.

The Charges:

--One count of conspiracy to transport stolen goods in interstate commerce, maximum prison term of five years

--12 counts of interstate transportation of stolen property, maximum prison term of 10 years per count

--Three counts of false statements on income tax returns, maximum prison term of three years per count

--14 counts of failing to collect, truthfully account for and pay quarterly federal income taxes and FICA taxes for a former employee, maximum prison term of five years per count

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