BARBOURVILLE, Ky. (WYMT/WVLT) -- Police raided a Knox County pawn shop and arrested two people on Wednesday.
Police say the T & L Pawn Shop was bringing in items shoplifted from other stores, like Walmart, and selling them in the pawn shop.
Officers say they made controlled deliveries of merchandise to the store and led them to believe it was stolen from other stores.
"When we executed the search warrants, we did find the items in glass cases where they were offered for resale," said Det. Steve Owens.
Police arrested Lewis Gray and his nephew Michael Gray and charged them with engaging in organized crime.
Along with stolen items, officers seized almost $40,000 in cash. They say the Barbourville Walmart suffered significant losses in the scheme.
"A large percentage of items they have losses for are the very items being sold in the pawn shop," said Det. Owens.
Barbourville Police also cited the T & L Pawn Shop for violating Barbourville City Ordinances. They are in the process of taking action to shut down the pawn shop.
Jail officials say Lewis Gray was released from jail on a $25,000 property bond and is on home incarceration.
Michael Gray is being held in the Knox County Detention Center on a $25,000 bond.