Part of Probe by Wherehouse Into Shoplifting : 2 Arrested in Videotape Theft Case

An undercover investigation by Anaheim police and Wherehouse Entertainment officials has led to the arrests of two operators of a Fountain Valley videocassette retail outlet who police said received stolen videotapes.

The case is a breakthrough in Wherehouse’s efforts to overcome the videocassette shoplifting that has plagued the company this year. The retail chain, headquartered in Gardena, is a leader in the young videocassette rental business. The company first publicly acknowledged the shoplifting problem in September when it came to light after a two-month inventory.

Police on Thursday arrested Viola C. Campagna and Bruce R. Beckman, who operate Video Trading Post, an independent videocassette retailer. Campagna and Beckman were charged with receiving stolen property, and bail was set at $2,500 each. Both posted bond and were released pending arraignment.

The two were arrested after a search of the store uncovered 377 cassettes that allegedly had been stolen from Wherehouse stores in Southern California. The arrests stemmed from an undercover investigation initiated by Wherehouse in October to identify where and how its shoplifting was occurring. Members of the Anaheim Police Department’s crime task force later entered the case and traced tapes stolen from Wherehouse to Video Trading Post, according to Kenneth (Chip) Leonard, Wherehouse’s vice president for loss prevention. Police said an undercover investigator sold tapes that he said were stolen to the owners of Video Trading Post.

“We got lucky here,” said Anaheim Police Lt. George Schrader.

“There are other stores receiving stolen tapes,” Schrader added.

Leonard estimated that the 377 recovered Wherehouse tapes, which were identified by their special markings, have a retail value of $25,000. That would represent only a tiny fraction of Wherehouse’s total loss from shoplifting, which financial analysts have estimated at between $1 million and $2 million.

Campagna said she had no immediate comment on her arrest. Beckman could not be reached Friday.

The company, the first major retailer to acknowledge a shoplifting problem in rental videocassettes, has not disclosed the size of its loss. Costs associated with the shoplifting losses, however, accounted for a 28% decline in Wherehouse’s earnings for the fiscal first quarter ended Sept. 30. The company posted a $754,000 profit, down from $1.05 million in the same period the year before. Revenue in the period grew 34%.