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July 08, 2013

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Retention Bonuses and the infamous non-compete agreement - Corporate America is clamping down and the legal system is supporting them  Twenty years ago or so, attorneys would tell you non-compete agreements were only as good as the paper they were written on, but things have changed in this world of technology, increased competition, the recession, and even the online e-commerce world has played a part. The judicial system and retailers have done an about-face on this issue and the pendulum has shifted in support of non-competes. From corporate secrets, marketing plans and strategies, organizational structures, recruiting of former executives, and a host of other issues have now been put under the spot-light and judges are supporting corporate America's attempts to keep their information and their corporate executives from being stolen or recruited by competitors by an executive who just left their ranks and had signed a non-compete. With technology making it easier to gather critical data, both corporate America and the legal system is responding and holding executives accountable to these agreements. There's been a number of senior executives who've been stopped from changing retailers over the last 5 years especially, with a few actually in the Loss Prevention ranks. One of the most common non-competes now in our industry, are those contained in retention bonus agreements. Where they'll actually list specific "same channel" retailers one can't go to work for while the agreement is in force and once the executive has executed it and received the bonus itself. Along with it includes the stock grants or options which can be forfeited.

More firms requiring non-compete agreements
There are no hard figures on the number of companies requiring workers to sign the agreements, but experts say they are becoming more common not only for executives and salespeople, but for a range of jobs in industries like tech and medicine, as well as service-oriented fields. Workers who breach the contracts could face a legal injunction stopping them from working at the company that wants to hire them, and some workers could be sued for damages if they bring over clients or share a company’s sensitive information. With technology making it easier for people to share sensitive information, some companies are also using the covenants as an additional way to protect trade secrets. Editors note: Here's a great article to read about the topic and gives some advice on how to handle them and what to look for. (Source marketwatch.com)

Retail Vacancies Lowest in 4 Years - but still a long way to go to get back to 08' levels  The average vacancy rate at U.S. retail property in the second quarter fell to its lowest level in more than three years to 10.5%, down from 10.6% in the first quarter, according to a report set to be released Wednesday by real-estate research firm Reis Inc. Asking rent increased to $19.19 a square foot from $19.13 in the first quarter. The average vacancy rate at U.S. malls was at 8.3% at the end of the second quarter, the lowest rate in more than four years and down from 8.9% one year ago, according to the report. Strip-shopping centers, which include stores clustered around a common parking lot, ended the quarter with a 10.5% vacancy rate, down from 10.8% a year ago. Still, nationwide vacancy remains well above the lows seen before the economic downturn. Overall vacancy was at 7.7% in the first quarter of 2008. (Source wsj.com)

The Guide to "Everything BI"
New business intelligence (BI) tools are transforming the way employees from the C-Suite to the shop floor analyze data. This primer provides info on "everything BI" including:
- Today's business intelligence defined
- How BI differs from business analytics
- Technologies enabling BI and must-have characteristics
- Tips to avoid common causes of BI failure (Source idgenterprise.com)

Retail industry jobs up 37,000 in June with strong gains in building supplies, clothing and sporting goods  The Bureau of Labor Statistics report showed that the economy added 195,000 jobs in June — including 37,000 in the retail trade — and unemployment remained unchanged at 7.6%. NRF pegged retail industry job gains at 28,000, with marked increases in every sector except furniture and home furnishings and health and personal care stores. (Source retailingtoday.com)

Instant Notification of Booster Bag Entry into Store
  Alert Systems and Indyme Solutions announced today a technology integration that instantly notifies retail store personnel when a "booster bag" enters a store or high-value merchandise area. Thieves, often affiliated with Organized Retail Crime rings, increasingly use foil-lined booster bags to defeat anti-theft tag detection by Electronic Article Surveillance (EAS) systems when exiting a store with unpaid merchandise. (Source yahoo.com)

RadioShack launches new store concept in Manhattan.  RadioShack will open several different store prototypes in New York, New Jersey and Texas during the next several weeks. The new concept is part of a wider initiative by new CEO Joseph C. Magnacca, who took the reins in February. The new store is designed to attract tech-hungry shoppers and to provide an environment that makes the buying experience fun. The new features include displays that highlight top-selling brands, interactive fixtures, in-store touch-screens, apps that explain product details. (Source chainstoreage.com)

Belle Foods to close 12 Food Worlds and one Piggly Wiggly, impact of Chapter 11. Belle Foods will close store in Florida, Georgia and Alabama in an effort to keep the former 57 store chain afloat as they restructure following a filing for Chapter 11 bankruptcy protection. The closures come as Belle tries to climb out of a bankruptcy that includes debts of more than $42 million. Belle was founded in 2011. (Source bizjournals.com)

New York Attorney General to review Payroll prepaid cards; 20 employers, including McDonalds, Walgreens, Home Depot and Walmart asked for information. Prepaid debit cards issued instead of traditional paychecks has been around for several years, authorities now believe that banks are generating more revenue from workers by charging certain fees on these prepaid cards. The companies are being asked for information about their prepaid payroll cards, including disclosures to employees and precise fees that workers have to pay. New York state law requires that employees must give advance written consent to be paid by payroll cards and any agreement to receive wages by the cards can’t be a condition of employment. In a Pennsylvania lawsuit that put the issue of payroll debit cards into the national spotlight, a former McDonald’s worker alleged that she was forced to accept her wages on a prepaid debit card. (Source nytimes.com)


Last week's most popular news article --

Video of Deadly Hostage Standoff in Walmart Released  Police have released surveillance video from an Oklahoma Walmart of a man who allegedly took a 2-year-old girl from a mother’s shopping cart and held a knife to the child’s throat. Surveillance cameras at the Midwest City, Okla., Walmart were rolling June 17 when police shot and killed the suspect, Sammie Wallace, in the head at point-blank range and safely returned the toddler to her mother. In the dramatic video, Wallace, 37, takes the toddler hostage while her mother, Alicia Keating, had her back to the shopping cart. Keating began to scream and pleaded with the suspect to return her daughter. Law enforcement quickly moved in and evacuated the store. Police began more than 30 minutes of negotiations with Wallace and, at one point, even offered him a chair. Police say Wallace was uncooperative and the situation quickly deteriorated, with the suspect making odd demands. The tipping point came when Wallace started an ominous 60-second countdown with the knife still close to the toddler’s neck. With the situation growing intense, an officer distracted Wallace as Capt. David Huff moved in and fired a single deadly shot at his head. (Source abcnews.go.com)

 

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Retail Crime News
 
$1.1 million - 4,500 bottles of vodka stolen from Miami customs warehouse  The pricey drink is Spirit of the Tsars Golden Vodka, and last month thieves grabbed 752 cases of it, busting a case-sized hole through a concrete wall to grab their pricey loot. Bottles of the amber liquid, distilled in and imported from Ukraine, retail for $249 in liquor stores but can fetch $1,200 a bottle at trendy nightclubs. The value of the entire theft was put at $1.1 million. Video surveillance showed the thieves arriving in a glass-roofed Mercedes sedan about 11 p.m. Later, a panel van and a large box truck showed up, carting off the last of the vodka about 4:30 a.m. (Source cnn.com)

Elderly shoplifters outstrip teenagers in Tokyo
The number of elderly people caught shoplifting in Japan's capital city has outstripped that of teenagers for the first time since records began, a report said. A quarter of the people arrested on suspicion of the crime in Tokyo last year were at least 65 years old, figures showed, amid warnings of increasing isolation in the age group. "Even though the total number of arrests for shoplifting has been declining, the ratio of elderly people are on the rise," a Tokyo Metropolitan Police spokesman said. "Our survey shows that elderly shoplifters tend to be lonely, having no one to talk to, and having no hobby to enjoy," he said. Statistics showed 3,321 people aged 65 or older were arrested for shoplifting, accounting for 24.5 percent of the total, while those aged 19 or younger made up 23.6 percent, with 3,195 individual arrests. Both figures are slightly down in absolute terms from 2011. (Source foxnews.com)

Champaign-Urbana. IL., sees increase in counterfeit money
  Counterfeit money continues to be a growing problem in Champaign-Urbana. Police need your help to stop the recent increase in the number of smaller denominations being printed. This includes fives, tens, 20s, 50s and 100-dollars bills. (Source wandtv.com)

Police arrest man accused of robbing two Family Dollar Stores in San Antonio
  Police have arrested a man accused of robbing two Family Dollar stores. They say he robbed a Family Dollar store on Zarzamora on July 3 and a Family Dollar store on Cupples Road on June 26. (Source woai.com)

Women involved kids in $1,200 shoplifting string at Tanger Outlets: Mebane police  Two Triad area women were arrested Saturday after allegedly stealing $1,286.42 in clothing and accessories from various stores at Tanger Outlets in Mebane, and involving two underage children in the crime. According to warrants, Douglas and Kittrell stole items valued at $274 from Carter’s, $100 from Osh Kosh (B’gosh), $105.95 from Gap, $269.90 from Sunglass Hut, $103.91 from Gymboree, $40.96 from Papaya, $135.93 from rue21, $135.92 from Nike, and $119.85 from Skechers. The women also allegedly encouraged two girls, ages 7 and 9, to conceal items in bags and leave the stores with the merchandise. (Source wxii12.com)

Kissimmee Pawn Shop Clerk fires a gun at robber, second clerk injured.  A clerk at the Queen of Pawn store was slightly injured when a robber entered the store Friday afternoon demanding cash; a second clerk pulled a weapon and shot at the suspect. The robber fled the store and it was not determined if the suspect was hit. No other injuries were reported. (Source wesh.com)

Greensboro Police investigate a violent armed robbery at a Food Lion.  At 11pm Sunday night, an armed masked suspect approached a cart associate outside the Greensboro Food Lion and struck him several time with his handgun. The associate was then lead back inside the store where the gunman held two additional associates hostage. Once the suspect gathered the store’s cash he fled. The victim who was attacked was taken to the hospital by ambulance to be treated for injuries that were described as “serious,” but not life-threatening. Neither of the other two workers was hurt during the robbery. (Source myfox8.com)

Virginia Man Arrested In Virginia Kay’s Jewelers Store Robbery.  Police in Virginia say arrested one suspect in connection with a smash-and-grab robbery of the Kay Jewelers in a McLean, Va. shopping center which occurred last Tuesday. Five suspects used hammers or mallets to smash several display cashes and steal jewelry. Video posted to YouTube shows the suspects fleeing the store, running through the mall and escaping through am emergency exit. (Source detroit.cbslocal.com)

Alabama police end interstate chase with arrest of Wal-Mart theft suspect.  Police arrested Gary J. Daughtery, 34 of Knoxville, TN on charges of first degree robbery, first degree attempted assault, first degree receiving stolen property, third degree theft of property as well as reckless endangerment and attempting to elude police on Friday. The list of charges stems from a shoplifting complaint against Daughtery at Wal-Mart. It was at the store that Daughtery allegedly resisted the attempts of loss prevention to detain him. He then allegedly assaulted a good samaritan that tried to help loss prevention employees. Daughtery was able to flee the store in a vehicle that was later learned to be stolen from Milton, Florida. Police chased the suspect on a pursuit on Interstate 65 northbound where he was finally halted when police deployed spike strips. (Source northescambia.com)

Three Alabama Men lead Police on a chase from Walmart, ends with a crash and arrests. On Sunday, two men fled the Walmart store in Prattville leading police on a high speed chase that ended when the suspect’s vehicle struck the car of an incident victim sending that person to the hospital. One of the suspects was immediately apprehended, the other was caught after a short foot chase. The third suspect is still on the run. (Source wsfa.com)

Dollar Tree robbed in the middle of the afternoon in York, Pennsylvania.  The Dollar Tree store on Loucks Road in York City was robbed Friday afternoon. York City police said the robbery happened about 2 p.m. No information was released on what was taken or if any injuries were reported. An alleged accomplice, who is believed to be a man between 18 and 22 years old, remains at large. (Source ydr.com)

Two suspects rob a Nassau County CVS store Sunday morning.  Nassau County Police are looking for two men who robbed a Franklin Square CVS early Sunday Morning. Police say the two men entered the CVS at 640 Franklin Avenue at 2.am. Both were wearing masks and one was armed. The only two employees were a 30-year-old man and a 32-year-old woman. The robber holding the handgun flashed it demanding cash and the employees’ cell phone while the other forced the female employee to empty out the register. (Source newsday.com)

Ontario man pleaded guilty to crime-spree that stretched from Stratford to London.  Jeffrey Ysebert, 32, of Port Burwell, pleaded guilty to nine charges Thursday, including the smash and grab robbery of the James O. Poeg’s jewelers last year. Along with the plea to armed robbery, Ysebert pleaded guilty to stealing a car from a London car dealership, stealing a pickup truck from a St. Marys car dealership, possession of stolen lottery tickets, two counts of gasoline theft, two counts of driving while disqualified and an armed robbery of a London convenience store. (Source lfpress.com)

37,000 Counterfeit items seized in Bangkok.
Police on July 3 raided two warehouses in Phuket, Thailand after obtaining information that a Thai and a foreign businessman had stored a large amount of counterfeit products in the area. It is Phuket's largest ever seizure of counterfeit merchandise. In one location, inside two three-storey warehouses, police found 34,379 garments bearing the trademarks of various international brands, and one suspect had been detained,. At the second location, more than 3,000 falsely branded bags were seized, and two suspects apprehended. (Source bangkokpost.com)

UK Thief makes a mistake burglarizing a CCTV shop.  When your shop sells IT Security cameras for a living you better have high quality evidence in your own burglary. In the garden area next to the headquarters of Kubix IT sat a $300 ladder. The thief stole the ladder but was caught just 24 hours later after posting the surveillance video on Facebook, with the ladder and wearing the same clothes. (Source gizmodo.com)

North Bergen man sentenced to 6 years for participating in cargo theft ring; $750,000 of merchandise.  A North Bergen truck driver was sentenced to six years in state prison Wednesday after admitting to taking part in a three-county cargo theft ring. Mohammed Nazzal, 38, appeared in Bergen County Superior Court facing a possible eight years behind bars for his role in a ring that stole 2,380 carpets worth nearly $500,000 from a Little Ferry company and $250,000 in designer clothing from another company in Passaic. (Source cliffviewpilot.com)

Colorado Springs Police Officer bitten during identity fraud investigation.  Angela Flummer, 32, was trying to use false documents to open an account with a large personal check at a west side bank when she allegedly bit a responding police officer after employees and citizens there detained her and called for help. Officers were dispatched to a fraud in progress around 5:30 p.m. at the Wells Fargo bank. Upon contact with the suspect, she became combative and, during a struggle to control her, she bit one officer on the hand. The officer was wearing protective gloves which kept the bite from breaking the skin. The suspect will be charged with assault on a peace officer and identity theft. (Source thedenverchannel.com)

NYC Chinatown Apartments being used as store fronts for counterfeit goods.  Sellers of counterfeit goods have moved from store fronts to Chinatown apartments to continue to sell their knock-off goods. Digital photos are displayed for the customers and bike messengers retrieve the merchandise warehoused in apartments. Counterfeit goods are even sold from vans which work the streets of Midtown. New York City is still working out the details of legislation on punishing the customer who purchases the counterfeit goods. (Source nypost.com)

UK to launch a new National Unit to investigate online piracy and counterfeit goods.  A new national unit to lead investigations into online piracy and counterfeit goods will go live in September. The unit, which will be led by the City of London Police, will target sites selling illegal goods in the UK and abroad. It will be one of the first units of its kind in the world, ensuring that the UK stays at the forefront of intellectual property enforcement. (Source cityoflondon.police.uk)

Cape Coral Suspect steals from Target, attempts to return stolen items.  The Cape Coral Police Department needs your assistance in identifying a retail theft suspect. The suspect loaded a cart with merchandise and left the store, passing all points of sale, without paying for the items after first attempting to "return" the un-purchased merchandise. This occurred at the Target, located on Northeast Pine Island Road, and possibly has recently done the same at Target on Santa Barbara Boulevard. (Source fox4now.com)

Confused Florida woman on the phone claims she didn’t realize she left the Walmart store with $320.47 in merchandise.  The woman was observed by Loss Prevention walking out of the store as the electronic article surveillance alarm sounded, claimed she was distracted by a conversation with her daughter on he cell phone and was also looking for her friend. The woman claimed she had no idea she left the store pushing the cart with over $300 worth of unpaid merchandise. (Source nwfdailynews.com)

 

EHS & Safety
 
Truck Drivers Not Revved Up About New Safety Rules-Will prevent 1,400 crashes and 19 deaths  The rules are part of a program by the Obama administration to make U.S. highways safer by reducing the number of truck accidents and fatalities. The program also includes a safety rating system that shippers can review when they chose a new carrier, with the goal of prodding the trucking industry to further improve the safety of its drivers and equipment. The new rules requires taking a 30-minute break in the first eight hours of driving, cut the maximum workweek to 70 hours from 82, and "restart" those 70 hours with a 34-hour break once a week. The updated hours of service rule makes three common sense, data-driven changes to increase safety on our roadways and reduce driver fatigue, a leading factor in large truck crashes," said Anne Ferro administrator of the Federal Motor Carrier Safety Administration, which issued the rules, in a statement. The new rules, according to FMCSA, will prevent some 1,400 crashes and 560 injuries, and saving 19 lives each year, according to its analysis. The number of people killed each year in large truck crashes has fallen by almost 30 percent, from 5,282 in 2000, to nearly 4,000 in 2011, according to the FMCSA. Went into effect Monday. (Source goduboisforum.com)

Costco to Manage Global Food Supplier Safety Audits  Costco Wholesale, which manages thousands of suppliers worldwide, has adopted a new food safety software solution to help manage supplier food safety auditing and product quality testing data. The membership club is working with Aspirago, whose applications include supplier food safety, product quality, auditing and certification management. Aspirago’s supply chain food safety software was built for the food safety industry and is the culmination of more than 10 years of in-field use with major retailers and food suppliers worldwide. (Source progressivegrocer.com)
 
ORC News
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Burlington man guilty of stealing $600,000, reselling items pleads guilty  Burlington man who stole books, Legos and other items from retail stores in Massachusetts and New Hampshire then resold them online for about half their retail cost has pleaded guilty. Federal prosecutors say 67-year-old John Strang pleaded guilty Tuesday in U.S. District Court to interstate transportation of stolen property. Prosecutors say Strang shoplifted as much as $600,000 worth of goods _ primarily books, audiobooks and Legos _ from various stores since 2007. He then sold them online for 40 percent to 50 percent off the retail price and shipped them across the U.S. Strang faces a maximum of 10 years in prison at sentencing scheduled for Oct. 15. (Source telegram.com)

ORC male duo from York, PA., busted who had 43 retail theft convictions between the two of them  Police in Springettsbury Township arrested two York City men one with 28 prior convictions of retail theft and the other with 15 prior retail theft convictions and charged them with retail theft on Friday. Lutzinger, 61, of 428 E. Prospect St., remains free on $25,000 bail. His alleged accomplice, Joseph Robert Corsa, 50, of 207 N. Hartman St., remains in York County Prison on $85,000 bail. The men allegedly stole a pool filter system valued at $199, a pool filter pack valued at $17 and an Igloo wheeled cooler valued at $21, from Walmart, located at 2801 E. Market St., about 11:20 a.m. Friday, documents state. (Source yorkdispatch.com)

5 females arrested after shoplifting at Home Depot in Hermitage, Tenn.
  Police arrested five females for shoplifting at a hardware store Sunday afternoon. The arrests took place just after 2 p.m. at the Home Depot in Hermitage. Police reported that some of the suspects were juveniles. The investigation is ongoing. (Source wkrn.com)

Former manager of Lorain County Community College’s bookstore guilty of theft  The former manager of Lorain County Community College’s bookstore pleaded guilty Wednesday to charges of theft and theft in office for selling stolen books on the Internet. According to prosecutors, Farrell made $98,225 for selling books she stole from the store on the Internet. About 1,600 books sold online by Farrell were listed as damaged in a Feb. 18, 2009, fire in the tunnels beneath LCCC that caused approximately $8.4 million in damage to the campus. She had an accomplice, Tina McElravy who plead guilty last year. School officials discovered discrepancies between a December 2009 audit of the bookstore’s finances and one that was conducted in April 2010. The December audit valued books damaged as being worth $100,953, while the second placed the value at $52,447. (Source privateofficerbreakingnews.com)


$250K Bond For Woman Charged With Robbery Of Beauty Supply Store.  A 21-year-old woman is accused of stealing thousands of dollars worth of hair extensions and cash from a Morgan Park beauty shop last month. Timesha Brown is charged with robbing the store in the 11100 block of South Western Avenue on June 3. According to police, the man had a gun and filled a bag with cash from the register, hair extensions and personal items from the two female employees in the store. The woman sprayed a 57-year-old store employee with pepper spray. (Source chicago.cbslocal.com)

Suspects Steal over $4000 in Perfume form JC Penney.  A group of shoplifters hit the perfume area of a Fort Smith JC Penney store in the Central Mall several times over the past few weeks. At times up to 4 shoplifters can be seen caught on surveillance video. The suspects all remain at large. (Source 5newsonline.com)

Tom Thumb shoplifters in Texas steal $1600 worth of wine.  Police in Grapevine need help identifying some suspects who allegedly stole baskets of wine directly off of the grocery store shelf. The two crimes took place on June 23 and June 24, both at the Tom Thumb store. In the first theft, officers were called about two men who allegedly took $1,000 worth of Duckhorn 2010 Merlot wine. The second wine theft, which happened just one day later at the same location, the man entered the grocery store and swiped about $600 worth of various wine bottles from the shelf. Surveillance photographs show the merchandise loaded into shopping baskets. (Source nbcdfw.com)

Two Cleveland area men accused of thefts from several Walmarts.  Two men were apprehended by Police in Elyria on Sunday after pushing a cart of merchandise valued at over $600 out the door. Loss Prevention and Elyria Police were waiting for them. One suspect admitted to Police that they used criminal tools during the commission of this and past thefts, and that the merchandise was sold downtown Cleveland for cash and or heroin. (Source thenews-messenger.com)

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The Seven Laws of Employee Theft Investigations

Employee theft accounts for nearly fifty percent of all losses. Resolution of internal issues is a cornerstone to loss reduction. Although in “general” it’s as simple as removing the problem – in practice the 7 Laws ensure that:

● Quality investigations are executed
● Potential liabilities are minimized
● Defendable argument for our actions and decisions are created

Each company's individual culture, practices, and operating policies will have an impact on the investigation process. The specific dictates of the investigation process are unique but the broad practices should be ensured. Investigations are one of the most critical elements to loss control, but they are also one of the high liability actions we will take. A thorough, thoughtful, and agreed upon practice increases our efficiency and limits are exposure...

Read More

Contact: Ray Esposito
Senior VP, Strategic Initiatives
resposito@lpinnovations.com

www.lpinnovations.com

 

 

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