Scatter as Baltimore Curfew Takes Hold
Armored vehicles lined this
battered city's main thoroughfares and thousands of law enforcement officers and
National Guard troops worked to maintain order and enforce a citywide curfew
Tuesday night, amid scattered reports of unrest after a day of largely peaceful
protests. As the curfew went into effect at 10 p.m., hundreds of people remained
in the streets near the intersection of Pennsylvania and West North Avenues in
blighted West Baltimore, where a CVS drugstore had been looted and burned during
Monday night's riots, after the funeral for Freddie Gray, who died after
suffering a spinal cord injury in police custody this month. There were some
reports of arrests, and police fired pepper-spray balls to disperse crowds, who
had earlier stood their ground despite entreaties from religious leaders and
community activists. Shortly before midnight, Police Commissioner Anthony W.
Batts said, "The curfew is in fact working."
Baltimore Riots Dent Retail
After days of riots in Baltimore, retail "is definitely going to be negatively
affected," said Mike Evitts, vice president of the Downtown Baltimore
Partnership. "Businesses are open. There's an abundance of law enforcement. But
people are staying away - in terms of the customer base. We're developing a
marketing campaign to help patronage return." Members of the National Guard
standing in line today in front of the Inner Harbor couldn't be good for
business. The city has been under siege since last Thursday when 25-year-old
Freddie Gray, a suspect in police custody, died of severe spinal cord injuries.
Baltimore Residents At a Loss After Riots Close Some CVS Stores
Hundreds of people gathered at a West Baltimore corner Tuesday where a CVS
pharmacy stood empty and charred from Monday's riots. In a building next door, a
dozen senior citizens watched the news and wondered where they would now buy
their groceries and prescriptions. CVS Health Corp. closed three area stores on
Tuesday because of damage and safety concerns for employees. CVS spokeswoman
Carolyn Castel said the company is "formulating our rebuilding plans" for the
two heavily damaged stores. In addition to the five outlets that were closed
earlier Tuesday, she said the company shut at least another six stores Tuesday
evening due to safety concerns for employees and customers. We are really
focusing today on a safe work environment for our employees, but being mindful
of servicing our patients who have medical needs," she said.
Gang members help prevent riot at Baltimore mall
Gang members, including Orlando "Magic" Gilyard, a Bloods gang member dressed in
red, were among the first to arrive at the mall this afternoon. Their message to
any potential rioters: go home. I'd rather be out here dealing with my
brothers, giving these dudes some tough love rather than see the police shoot
them down," Gilyard said. "I don't want to see these kids get shot down." wusa.com
Day after Baltimore Riots LAPD Police Commissioner approves body cameras for
LAPD - Are Security Guards & Off Duty Officers working retail next? And will
cameras be required in all LP offices?
Los Angeles will become the
largest city in the nation to equip all its patrol officers with body cameras,
after a divided Los Angeles Police Commission on Tuesday gave its final approval
during a heated debate that highlighted lingering concerns about how the cameras
will be used. The 3-1 vote that signed off on the LAPD's rules for the devices
comes as police departments across the nation are considering whether to use the
body cameras to provide a better record of officers' actions after a series of
racially charged police killings. On Tuesday, two police commissioners got into
a tense exchange over whether police officers should be allowed to review the
footage before writing their reports or giving statements to internal
U.S. Seeks Criminal Charges Against Lumber Liquidators - Over 103 class-action
lawsuits filed - Stock down 50% - CFO leaving
Department is seeking criminal charges against Lumber Liquidators in an ongoing
investigation over imported products.
In March a report on CBS' "60 Minutes"
said that Lumber Liquidators' laminate flooring made in China contains high
levels of formaldehyde. Lumber Liquidators Holdings Inc. has said that it
complies with applicable regulations for its products. In a regulatory filing
Wednesday, Lumber Liquidators said that the Justice Department was seeking
criminal charges against it under the Lacey Act. The company, based in Toano,
Virginia, also disclosed that it is aware of more than 100 pending
class-action lawsuits against it related to its Chinese-made laminate flooring.
On a conference call with investors, CEO Robert Lynch said the company had spent
more than $15 million on the issue during the quarter, including $10 million it
has set aside to deal with the Justice Department investigation, millions more
in professional and legal fees and nearly $2 million for an indoor air testing
program it is offering to concerned customers.
Lynch also announced that the company would be sourcing more of its laminate
flooring from Europe and North America and less from China "in response to
customer demand." But the change-which he acknowledged will hurt already
declining profit margins-is unlikely to head off regulators, who appear to be
closing in on the company.
The company is also dealing with pressure at the state level.
In the SEC
filing, the company said it is "fully cooperating" with information requests
from various state attorneys general about its Chinese laminate flooring.
Disgruntled former 7-Eleven Asset Protection executive and unethical attorney
get disqualified by Judge in suit against 7-Eleven In a lawsuit
where 7-Eleven terminated franchise agreements with Saroj Patel, Inc. in
California, a disgruntled former 7-Eleven Asset Protection executive had
actually contacted the plaintiffs attorney offering to help their case by
offering testimony unfavorable to the Asset Protection program at 7-Eleven.
Below you'll find a portion of the detailed report published in a news source
trade publication for franchise owners.
district judge ruled
that Gerard "Jerry" Marks and his law firm Marks &
Klein are disqualified from further participating in a franchisee lawsuit
against 7-Eleven, Inc., claiming unlawful termination. His decision was centered
on how Marks paid a witness, a former employee of 7-Eleven's asset protection
department, to testify against the convenience store franchisor on how it treats
As background to the case, Dilip Patel v. 7-Eleven, Inc., filed in March 2013,
the complaint alleges that 7-Eleven terminated the franchisees' stores in
Riverside, which violated the California Franchise Relations Act and other state
codes. They also claim the franchisor breached the implied covenant of good
faith and fair dealing, and committed false imprisonment of franchisees.
Testimony tells of how store owners were kept isolated in conference rooms for
many hours at a time while 7-Eleven asset protection specialists questioned and
The judge's decision explains that the employee, Kurt McCord, contacted
attorney Jerry Marks by email in February 2014, "pitching" the idea that he
could provide evidence of 7-Eleven's alleged misconduct against franchisees to
assist with his litigation against the corporation.
employment is documented to be from May 2013 to February 2014. In his analysis
McCord wrote, "I could tell that some stores were getting prioritized for
take-backs for the wrong reasons, and I can provide evidence to this." He also
expressed that he was disgusted with 7-Eleven's investigation operations, and
also represented via text message to Marks that he "loves it when 7-Eleven is in
The judge said McCord offered his services to Marks as a loss prevention
consultant for $300 per hour with a $2,500 minimum. Marks later hired the former
employee formally stating that McCord would advise whether the interview
techniques and circumstances, relative to franchisees, were proper as to both
7-Eleven interview directives, as well as to professionally accepted loss
prevention interview ethics and practices.
McCord then produced a document with specific information about how 7-Eleven's
asset protection program operates, and a general summary of proper interview
techniques and analysis of 7-Eleven's interview with franchisees. The former
employee's "certification" also contained information of his experience working
in the asset protection department, discussion of 7-Eleven's interview with the
franchisees in the lawsuit, and his descriptions of franchisor/franchisee
relationships and how the asset protection industry traditionally works.
From this document, attorney Marks drafted a "certification of Kurt McCord." It
was later signed and filed in this case. Marks paid the former employee $2,500
for his work. The judge said that 7-Eleven alleges that Jerry Marks and Marks &
Klein improperly paid McCord for the "fact testimony" contained in these
documents and then moved to disqualify the franchisees' attorneys in the case,
or, alternatively, to revoke their pro hac vice privileges.
A footnote in the judge's decision tells that Marks and his firm used another
analysis prepared by McCord in a separate case against 7-Eleven, along with the
analysis in this case, to create the "certification of Kurt McCord." It also
states, "McCord was paid $5,000 for his work on that separate analysis."
In conclusion to his 26-page analysis of 7-Eleven's operation McCord explains
that what he witnessed while working at 7-Eleven was not the actions of a
legitimate asset protection/loss prevention program. He felt it was his duty to
expose these injustices.
After hearing arguments from both sides, the judge concluded that McCord was
not qualified to testify in these areas as an expert witness.
even if McCord's testimony contained some proper expert analysis, it also
contains fact testimony regarding defendant [7-Eleven]. The court holds that
McCord was improperly compensated for that fact testimony."
According to the court, the witness, Kurt McCord, has "serious credibility
Among other things, the court found that, Mr. McCord "lied about
his mother's death to get time off work from 7-Eleven then demanded further
compensation because his co-workers allegedly mistreated him while he was
grieving this 'death.'"
On April 14, the United States District Court for the Central District Of
California disqualified attorney Gerald Marks and his law firm Marks & Klein,
LLP, from any further participation in a lawsuit Marks had brought against
7-Eleven on behalf of a 7-Eleven franchisee. The court disqualified Marks for
It held that Mr. Marks had violated the California Rules
of Professional Conduct for lawyers by paying a witness for fact testimony. The
court stated that Mr. Marks's conduct threatened "the very integrity of our
judicial process" and that it had to impose a sanction "that actually punishes
counsel for his ethical wrongdoing." The court emphasized that even though
disqualification of a lawyer is a "drastic measure," it was necessary in this
case because of Mr. Marks's "ethical violation."
When it comes to representing franchisees, Mr. Marks and his firm are repeat
ethics offenders. Marks & Klein has also been disqualified, on the basis of
ethical misconduct, from representing Quizno's franchisees in a lawsuit it had
brought against Quizno's.
View the judge's order to disqualify counsel
Audit - identify - investigate - apprehend - "Wherever they're going to be"
The senior vice-president of technology/CIO of Walmart Canada speaking about how
retail is changing says. "What's changing is that the option set for them
(customers) to get those things is growing dramatically faster than it has
before. We have to figure out how to work with them wherever they're going to
be." Editor's Note: And if that's the case then LP and IT Security has to figure
out how to audit - identify - investigate - and apprehend dishonesty wherever
they're at as well. Which certainly changes the various investigative channels
and touch points. Just a thought.
HBC in talks to acquire German chain of department stores
Hudson's Bay Co. is looking at buying German department store chain Kaufhof
for potentially as much as $2.6-billion (U.S.) - more than HBC paid for Saks
Inc. in 2013.
HBC, which operates the Hudson's Bay department stores in
Canada and bought the upscale Saks Fifth Avenue chain for $2.4-billion in late
2013, is eyeing more acquisitions as it looks to expand beyond North America.
LPRC hosts Toys"R"Us' Director's Council Meeting at Innovation Lab
Chris Gillen and nine Toys'R'Us LP executives utilized the LPRC's Innovation Lab
as part of their Retail Learning/Meeting Space package. Day 1 included seminars
with Dr. Read Hayes introducing theory and principles of criminology and
research methods, followed by a private offender interview session. On Day 2,
their new knowledge was put to the test, as the LPRC team assisted with
brainstorming and design of a Toys"R"Us project initiative. If your team is
interested in utilizing the LPRC's lab space for a meeting and learning seminar,
London is the UK's identity theft capital
London identity theft rates almost three times higher. retailfraud.com
Michigan-based SpartanNash buying N. Dakota chain
Quarterly Same Store
Carter's Q1 retail segment up 0.7%, OshKosh up 5.2%, with sales up 11.9% & 14.9%
Couch Q3 North American comp's down 23% with NA sales down 24%