People v. Cervantes CA3

BACKGROUND

On three separate visits in January, February, and April 2022, an investigator went to the Laney Flea Market and scanned 277 different Lululemon clothing items offered for sale by defendant and his wife Maria Vargas-Cervantes1 at their booth. During a search of defendants’ home in April 2022, law enforcement found 82 more items of Lululemon merchandise. Investigators ultimately determined all of the items had been stolen. While the items that were recovered were returned to Lululemon, Lululemon deemed them unsellable as stolen goods. The items were ultimately donated, and Lululemon did not take a tax deduction for stolen merchandise or submit an insurance claim. The total MSRP of the merchandise found at the Laney Flea Market and defendants’ home was $36,690. Defendants were charged with multiple counts of receipt of stolen goods and grand theft of property from multiple retailers, including Lululemon. In 2023, defendants both pled no contest to two counts of receipt of stolen property (Pen. Code § 496, subd. (a)) pursuant to a plea agreement. As part of their pleas, defendants agreed to pay restitution and agreed to a factual basis that they had knowingly possessed…