San Jose police arrested two suspects on suspicion of fencing stolen property after a three-month investigation, a police sergeant said.
Zoila Martinez, 42, and Jose Figueroa, 44, both of San Jose, are suspected of running a major fencing operation dealing primarily with stolen clothing, burglaries and robberies of department stores in the San Jose area, Sgt. Enrique Garcia said.
The San Jose Police Department's burglary-prevention unit worked with loss-prevention management from retailers including Macy's, Nordstrom and Victoria's Secret to develop information regarding a makeshift storefront known as Betsy's Fashion at a home in the 1400 block of South King Road.
Detectives searched the storefront Friday and recovered more than $430,000 of stolen clothing, including at least 700 Michael Kors jackets, hundreds of shoes and other clothing that was confirmed stolen from the local department stores, Garcia said.
One neighbor who didn’t want to be identified said the couple would hold yard sales every weekend under the Betsy's Fashion name.
"I know a couple people who've gone and bought stuff from them," the neighbor said. "I never bought anything from them, but I know they had branded stuff."
Martinez and Figueroa were arrested and booked Friday in the Santa Clara County jail for possession of stolen property, Garcia said.
NBC Bay Area's Ian Cull contributed to this report.