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August 8, 2014

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News Brief
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Kirk Diegel was promoted Vice President of Asset Protection - Field for Follett Higher Education Group. Kirk joined Follett in 2005 and has over 25 years of loss prevention and store operations experience. Kirk's most recent position at Follett was Regional Director of Loss Prevention West. His contributions at Follett have resulted in consistent shrink dollars improvement and developed an excellent partnership with the operations team. In his new role, Kirk will be responsible for the strategic direction of FHEG store-wide Asset Protection Program. Kirk previous roles also include Loss Prevention Director for Frank's Nursery and Crafts and the Vice President Loss Prevention for Perry Drug Stores, Inc. Congratulations Kirk!

Lawsuit Over Retail Theft Database That Wrongfully Labeled Job Seekers as Criminals Settles for $2.38 Million  A Pennsylvania federal judge has approved a settlement for $2.38 million in a class action lawsuit that alleged a retail theft database used for background checks wrongfully labeled job seekers as criminals even if they were not convicted of a crime, according to a report by Lead plaintiffs Keesha Goode and Victoria Goodman alleged in the class action lawsuit that LexisNexis distributed damaging information compiled in the Esteem database to current and prospective employers without implementing proper safeguards, in violation of the Fair Credit Reporting Act. According to the class action lawsuit, Goode was denied employment with Family Dollar Stores Inc. based on information contained in the Esteem database. Goodman claims she was denied a promotion from a Rite Aid store and was later fired based on information in the Esteem database. LexisNexis Risk Solutions Inc. agreed to suspend its Esteem retail theft database under terms of the settlement. The company also agreed to set more stringent requirements to protect job seekers if the database is used for employment background checks in the future. (Source (Source

Retailers Facing New Class Action Attack for Routine (but Unlawful) Background Check Practices  Retail employers are under attack by a wave of recent class action lawsuits alleging violations of the Fair Credit Reporting Act (FCRA), as well as related state counterpart laws – such as the California Consumer Credit Reporting Agencies Act and the California Investigative Consumer Reporting Agencies Act. These lawsuits center on employers’ alleged failure to provide proper disclosures to, and obtain proper authorizations from, prospective employees before performing background checks. In most cases, the disclosure is allegedly deficient for including extraneous information, such as a release of liability or confirmation of “at will” employment within the same disclosure document or combining the FCRA disclosure in an employment application. While this is not a new area of law, the complaints are growing and the allegations expanding, and if the trend continues, we may see more and more plaintiffs’ attorneys attempting to exploit this area. (Source

Who Benefits From Analytics - In-Store Retail Analytics: Most Valuable Insights  Respondents say Marketing is the department that benefits most from in-store retail analytics, although they cite several other functions that benefit as well, including Merchandising, Operations, and Loss Prevention. (Source

Sears agrees to $5M settlement in Loss Prevention Manager wages class action; Attorneys to seek $1.66M  Sears has agreed to a $5 million settlement in a class action alleging it misclassified workers in order to not pay them overtime pay. “The $5 million settlement resolves all current and potential litigation concerning the classification of the [loss prevention managers] position,” the settlement document filed July 16 states. “This settlement was reached after the parties participated in two mediations with Mark Rudy, a well-known and experienced wage and hour mediator, followed by five months of exhaustive post-mediation negotiations conducted by the parties.” The settlement is the product of years of hard fought and extensive litigation by both parties, according to the settlement. Class counsel will file an application for an award of attorneys’ fees and reimbursement of costs and expenses incurred in the prosecution of this lawsuit and the finalization of this global settlement, according to the suit. The fees will not exceed $1.66 million. As part of the settlement, the parties have agreed that $15,000 should be paid to the California Labor and Workforce Development Agency and $75,000 will be withheld from the net settlement amount for the defendants to use to resolve the claims of other current or former loss prevention managers who are covered by this settlement and who have pending or threatened federal or state overtime claims at the time this stipulation is filed and/or or the remedy any errors or disputes. Each of the named plaintiffs will receive a $5,000 incentive award. Following deductions, the settlement will pay the employees an average of approximately $21 per each week they worked during the time period covered by the unpaid overtime settlement, which is an average of $1,800 per worker. The lawsuit was filed in July 2011 by Robert O’Toole, who took action on behalf of himself and other current and former loss prevention managers at Sears and Kmart stores who allegedly were denied overtime compensation. (Source

Saks Fifth Avenue sued by African-American patron allegedly followed by security personnel in New Orleans  A Baton Rouge doctor is suing Saks Fifth Avenue and two of the retailer’s employees for allegedly accusing her of shoplifting because she is of African-American descent. Dr. Japera Levine filed suit against Saks Fifth Avenue LLC, a Saks sales associate, and a Saks security guard in the Orleans Parish Civil District Court on June 27. Levine claims that on June 30, 2013 between noon and 2 p.m., she went shopping at Saks Fifth Avenue on Canal Street in New Orleans. Her motivation for patronizing the retailer was celebratory, having just finished a surgical procedure at her hospital of employment in Baton Rouge, the suit states. It also states that Levine had shopped at Saks’ locations in other cities several times before June 30. Levine reports that she expressed incredulity, after which the presence of a security employee was brought to her attention. According to the suit, the security personnel had been following her throughout the store. Levine allegedly requested to speak with the manager, to whom she articulated frustration with being treated as a thief after spending $3,000 at that Saks location. On July 3, 2013, the Saks store manager allegedly called Levine and did not apologize for her experience on June 30. The manager allegedly explained that it is Saks’ store policy to follow customers when they are shopping. The plaintiff asserts that she saw other customers walking with items from one department to another without obstruction. (Source

Possible Protection 1 buyers: PE firm, telecom or cableco  Home security giant Protection 1 is up for sale for more than $1.5 billion, Reuters reported this week. Likely buyers could range from a top private equity firm to a telecom or cableco, an industry analyst told Security Systems News. GTCR, the private equity firm that bought Protection 1 in 2010 for $828 million, has asked Morgan Stanley to help in the sales effort, the news service reported Aug. 4. Romeoville, Ill.-based Protection 1 did not respond to SSN’s request for comment on the report, which Reuters ascribed to unidentified sources. Jeff Kessler, managing director of institutional research at Imperial Capital, a New York City full-service investment bank, said the news that Protection 1 was a surprise to him and praised Protection 1's CEO Tim Whall, CFO Dan Bresingham and CIO Don Young as “three of the leading executive luminaries in the industry right now,” and noted that their “top-notch management” has resulted in marked improvement in both the residential and commercial side of the business.  (Source

58% of credit cards & 26% of POS terminals projected to be EMV-compliant by 2015  "Looming regulatory issues and rumors that liability shifts would be extended have prevented merchants from getting the head start necessary to match financial institutions' EMV reissuance," said Michael Misasi, a senior analyst in the credit advisory service at Mercator and the primary author of the research note. "Both groups will be ramping up their EMV efforts around the same time." (Source

Russian cyber crime gang now has stolen 4.5 billion records - largest cache ever!  The gang started off with black market databases which were then used to attack the various websites to spam victims and install malicious redirections on legitimate systems. They then upped the ante by getting access to data from botnet networks. The CyberVors did not differentiate between small or large sites. They didn’t just target large companies; instead, they targeted every site that their victims visited. With hundreds of thousands sites affected, the list includes many leaders in virtually all industries across the world, as well as a multitude of small or even personal websites.” says the report. (Source

All-Tag's response to the Tyco-Ningbo Patent Dispute over EAS Labels

July Same Store Sales Results

Costco up 5% with net sales up 9%
Gap up 2% with net sales up 5%
McDonald's U.S. down 3.2%

Quarterly Same Store Sales Results

Canada's Indigo - Q1 Chapters superstores up 8.3% & small formats up 1.9% - online sales up 14% & sales up 5.4%
Whole Foods Q3 up 3.9% with total sales up 10%
Gap Q2 flat with net sales up 3%

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Loss Prevention News Network
"Live in Ft. Lauderdale at the NRF Show 2014"

NRF's LP Awards & Recognition Committee

Melissa Mitchell, CFI, Dir of LP and Inventory Control, LifeWay Christian Stores, and Chair, NRF LP Awards & Recognition Committee

Melissa Mitchell, CFI, Director of LP and Inventory Control for LifeWay Christian Stores, discusses the NRF’s LP Awards Program, which honors loss prevention professionals and law enforcement officers who have positively impacted the LP community each year. As chair of the NRF’s Awards & Recognition Committee, Melissa talks about the importance of acknowledging excellent performance among your ranks. Learn how you can get involved in next year’s nomination process!

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LPNN Quick Take #11

In this LPNN Quick Take, hear from Joe LaRocca, Hedgie Bartol, Business Development Manager, Retail, Axis Communications, and Professor Bob Hanson, Northern Michigan University. Hedgie discusses what he aims to get out of these types of conferences and what he tries to learn. While Bob Hanson tells us what he takes back to the university and students from the conference. The three discuss how Loss Prevention as a profession has changed over the last 20 years.

Solution Providers, have a video or commercial you want to publish? Contact us.

Sponsored by The Zellman Group

Some online retailers seeing value in opening bricks-and-mortar shops  Some of the hippest online retailers around are pioneering an old concept: offline retailing. After years of squeezing traditional retailers, e-commerce companies that were once digital-only are seeing the value of hanging up shingles in malls and bustling shopping streets. “It's all about having the online retail world figure out, 'Maybe we can showcase our products better in store,'” said Marshal Cohen, chief industry analyst for NPD Group. “We are going to use retail as a way to eliminate some of the challenges online has because you can't touch and feel and smell and taste.” (Source

Report: Bitcoin Targeted in 22% of Financial Malware Attacks  Security firm Kaspersky Lab has found that bitcoin is the target in more than one fifth of all malware attacks aimed at victims’ money. According to Kaspersky’s latest threat report, entitled ‘IT Threat Evolution Q2 2014’, bitcoin mining malware accounted for 14% of attacks in the second quarter of 2014, while bitcoin wallet stealers accounted for 8%. Keyloggers, which can be used to compromise both bitcoin and banking services, also made the list, with 4% of all attacks attributed to various forms of key logging malware. Traditional banking malware still leads the way with 74%, but considering the size of the bitcoin economy it is clear that bitcoin users and operators face a significant likelihood of being subjected to an attack. (Source

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet


Canadian Push
Sponsored by Vector Security
DSW Designer Shoe Warehouse opened two stores in Toronto this week - Slow and Controlled Growth Planned  In April, DSW bought a 49.2% stake in Town Shoes, paving the way for DSW's entry into Canada. Mr. Dinan says that DSW stores will eventually roll-out across the country. DSW's strategy for entering Canada is initially a cautious one. DSW will ensure that these first stores are able to provide the same quality experience of its US locations and once confident enough, DSW will open stores Canada-wide. (Source

Target Canada opening 3 new stores in Ontario, Quebec - Now 130 open

Menswear store owner - Sudbury shooting victim, fears reprisal from released shooter  The victim of a shooting incident in downtown Sudbury says he lives in fear that his attacker will be released and says a recent ruling makes that possibility seem closer than ever. In 2010, Alex Klem walked into Tony Monteleone's menswear store, and shot him in the abdomen. Klem was found not criminally responsible for that last year. The judge said he suffered from paranoia and delusional disorder. Klem has been in custody at the North Bay Psychiatric Hospital since the ruling. But recently, the Ontario Review Board granted Klem a transfer to a mental health facility in the town of Whitby in southern Ontario. Monteleone said he is disappointed by what he sees as a favorable ruling. And he's also afraid Klem will be released, and come after him. (Source

Plain clothes York Police team targeting shoplifters and known criminals  A new plain clothes police team has been launched in York. The four-person team has been given funding to take on shoplifters, bike thieves and other acquisitive crimes in the city, and is concentrating on offenders recently released from prison, along with other known offenders. Inspector Charlotte Bloxham said the new team was not created following a rise in crime, but with the intention of trying a new method of dealing with volume crime. Insp Bloxham said: "We have had some good results in areas where they would perhaps not have done previously because they weren't in plain clothes." (Source

Suspects sought after unsuccessful armed robbery at Vaughan jewelry store  

Vacuum thief's clean getaway captured by Costco's surveillance camera


Big Data
Sponsored by Verint

The Internet of Things Brings Far-Reaching Security Threats  With the exuberance to embed sensors in a galaxy of devices and bring them onto the network, the new "Internet of Things" will unwittingly create a virtually limitless set of new threat vectors. In a retail environment, for instance, the CIO's involvement in store operations might be limited to the cash registers, point-of-sale systems and back-office operations. In a world where mobile payments are a reality and items on the shelf are expected to interact with shoppers' devices, though, the tech team must take a more hands-on role. "If that's the case, then the people managing IT actually have to touch the merchandise in a way that the store manager never would have wanted before." (Source  

How retailers will get inside your head - The Big Data World of 2039  "Yesterday retailers inferred what drove customer behavior, but today they are thinking differently because of big data," explains Brendan Witcher, analyst at Forrester Research. "Tomorrow retailers will be utilizing big data solutions to understand the customer from beginning to end." New technologies and platforms, like beacon technology and social sites, are equipping retailers with new information about customers that allows them to create a tailored shopping experience for individuals, said Mallory Duncan, the general counsel for the National Retail Federation. (Source

Russian hackers prove need to avoid sloppy security practices

6 Big Data Risks Businesses Should Consider

Privacy groups call for ‘strong and resonant’ data law

ORC News
Sponsored by Security Resources

Organized gang hitting Love's Truck Stops in 19 states stealing diesel fuel - LP Issues bulletin  Authorities say a band of thieves is traveling across the country stealing diesel fuel from Love's Truck Stops. Thefts have been reported in 19 states, including Alabama, according to a bulletin issued by Love's Truck Stop Loss Prevention and the St. Lucie County Sheriff's Office in Florida. One man is in custody, and three others are sought. Investigators say the thieves are part of an organized group from south Florida which has traveled across the country for the past year in semi-trucks. They pull up to the pumps, pay for a low amount of fuel and then bypass the pumps' fuel counter systems and continuously pump fuel into several semi-trucks lined up behind each other. They have stolen thousands of dollars in fuel. (Source

Seven women hit Hurst, TX., Walmart - electronics heist  Police are trying to identify a group of women who walked into a Hurst Walmart, and walked out with hundreds of dollars of stolen tech gear. The seven women seemed to know just what they were after during their overnight shoplifting spree. Each of the women grabbed several Xbox and PlayStation 3 game controllers and then wandered to other departments in the store. At some point, several of them picked up green tote bags. While taking turns looking out for one another, the worker says the suspects are seen opening the boxes, then concealing the stolen items in their purses or clothing and leaving the empty packages behind. (Source

Female ORC duo busted seeling stolen merchandise in Punta Gorda, Fla.  Two women from Harbour Heights were arrested Wednesday on multiple charges related to a scheme to steal merchandise from local businesses and resell the property. On Tuesday, undercover deputies met with Teara Anne Sander, 24, to purchase property suspected to have been stolen. Sander allegedly sold the undercover operative a Vizio surround sound system and an RCA mobile DVD player, both of which were still in the original retail packaging, for $150. The total retail value of the items was $345. Sander contacted the undercover operative again on Wednesday to tell him she had more merchandise available. Various Walmart stores identified both suspects and Confessore was charged with Grand Theft, Petit Theft and Organizing Theft and Dealing in Stolen Property. She is being held on a total $19,000 bond. (Source

IRS Subpoenas Accounting Firm in Recent Major Retail Theft Ring Bust  The investigation into an alleged major theft ring broken up by raids conducted by federal, state, and local officials now has a connection to the president of the Evansville City Council. 19 people were arrested and charged in connection to the alleged multi-million dollar operation Tuesday. Tonight, Evansville City Council President John Friend says his accounting firm has been subpoenaed along with one of his accountants. That accountant, Alicia Rudd, is the owner of Dealmaker's, the business at the center of the theft ring investigation. Rudd has not been charged in the case. (Source

5 members of an Organized Shoplifting Gang stand trial in Northern Ireland  The five men, all with addresses in the city, were arrested following a search operation by local police whose suspicions were raised after one of the gang tried to sell a stolen pair of hair straighteners to a member of the public - outside Strand Road PSNI Station. The court was told by a PSNI officer that shopkeepers in the Derry area had been targeted for the last five months by a Scottish/ Irish shoplifting gang. She said the gang used a foil lined crisp box, inside a large blue Argos bag in which to stash hundreds of pounds worth of goods such as perfumes, designer clothes and football shirts from stores such as Boots, DW Sports, Lifestyle Sports, Kular, Tommy Hilfigger and Tesco. (Source

Two men hit Boardman, Ohio, Walmart buying gift cards with stolen credit cards - reports indicate they're hitting stores "all along the East Coast"  

Thieves steal $20,000 worth of Michael Kors purses, ATM, safe in three burglaries in Santa Fe 

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Retail Crime News
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Counterfeiter of rare vintage wine sentenced to 10 years in prison for $20M "grand con"  Rudy Kurniawan, 37 years old, was once one of the world's most prolific wine collectors. He displayed no outward emotion as U.S. District Judge Richard Berman called his crimes "a bold, grandiose, unscrupulous but destined-to-fail con" in federal court in Manhattan. He has been jailed since his arrest 2½ years ago and that time will be reduced from his term. He was also ordered to pay $28.4 million in restitution to his seven victims and forfeit an additional $20 million as punishment. (Source

Palmdale, CA smash-and-grab suspect arrested; brutally assaulting owner  A man accused of smashing a window to break into a Palmdale boutique and brutally beating the owner was arrested Thursday. The suspect broke the windows of The Butterfly Boutique, a clothing store in the 1600 block of East Palmdale Boulevard, after midnight. He then went inside and started grabbing merchandise. When one of the owners sleeping inside confronted him, the suspect allegedly beat him. "He kicked the owner in the head at least 15 times, injuring him enough for him to be admitted to the hospital." (Source

Thieves Target Historic Hardware Store Going Out of Business in Arkansas  "It's Where Paul "Bear" Bryant wrestled a bear," Garlington revealed. Five thieves including two juveniles kicked in a back door over the July 4th holiday and stole thousands of dollars worth of merchandise. The theft included 22 firearms and 29 knives. It's estimated damage: upwards of $8,000. (Source

Arrest ends string of Dollar Store burglaries in MS and TN  Three Northeast Mississippi men were jailed here this week, possibly ending a spree of burglaries that occurred in three Mississippi counties and one on Tennessee. “There may be even more that we don’t know about,” Sheriff Jimmy Edwards said. The local incident occurred July 10 when someone broke into the Dollar General store at Myrtle about 1 a.m. by picking the lock, the sheriff said. “They went in straight to the safe and hooked a big strap like truckers use to tie down loads to the safe and attempted to jerk it out of the floor.” (Source

Boost Mobile Employee accidentally shoots himself inside Shawnee, KS strip mall store  People in a Shawnee strip mall had an alarming afternoon, after hearing a gun shot in a store next door. Police say an employee shot his gun inside a Boost Mobile store, accidentally shooting himself in the leg. People at businesses nearby say they’ve never seen a Boost Mobile employee carrying a gun. It is legal in Kansas to carry one and as of July the gun doesn’t even need to be concealed. (Source

Three Sears employees charged with felony theft in Monroe, LA  Three retail employees re arrested Wednesday for reportedly taking merchandise worth several thousand. Arrest affidavts said Monroe Police were sent to Sears on Millhaven Rd. An investigation revealed that the 3 employees were taking merchandise and placing it into people’s vehicles without paying. The items included a flat screen tv worth over $1200 and 2 sets of Washers and dryers valued at over $3300. (Source

Burglary at Bridge Street Apple Store in Huntsville, AL  Huntsville police responded to a burglary at the Apple Store at Bridge Street Town Centre early Thursday morning. The incident happened around 3:20 a.m. Officers dispatched to Bridge Street for an alarm. When they arrived, the front glass of the business was broken out. They are not yet sure of the amount of property taken. (Source

UK: Metropolitian Police in East London hunt for thieves who stole jewelry in Whitechapel armed robbery  The Metropolitan Police’s Flying Squad believes the suspects may have tried to pawn the south Asian-style jewelry, which was taken in a smash and grab at UKAY on Whitechapel Road on Wednesday, May 21. Four people on two mopeds pulled up outside the shop at around 9.40am and two of them ran into the front half of the shop, brandishing hammers and knives as they ran to the jewelry department which was separated by a door at the back of the store. (Source

All clear given at Rock Hill Walmart following bomb scare

Two charged after Police-involved shooting at Chicago’s Northwest Side Jewel store

Pharmacy in Bellerive, KY Kroger robbed Thursday morning

Robberies and Burglaries

Coins & Cards - Butte, MT - Armed Robbery - arrested after standoff w/ Police
Dollar General - Albany, GA - Armed Robbery
Family Dollar - Macon, GA - Armed Robbery - police release photo
Good Day Market - Prince Frederick, MD - Robbery
Hobo Pantry - Dothan, AL - Armed Robbery - 4 charged
Pat’s Market - Eureka, CA - Robbery - 2nd time in 2 days
Puff’s - Houston, TX - Burglary
Quik Trip - S. Tulsa, OK - Armed Robbery - clerk held at gunpoint
Ripona Market - Ripon, CA - Armed Robbery - 5 arrested
Rite Aid - Kittery, ME - Armed Robbery - suspect sentenced to 3 years
Great Shops - Burlington, NC - Armed Robbery
Texaco - Lacy Lakeview, TX - Armed Robbery
Turkey Hill - Laureldale, PA - Armed Robbery - 2 teens arrested
Waverly - Palo Alto, CA - Robbery
7-Eleven - Salisbury, MD - Armed Robbery


Vendor Spotlight


Video as a Platform
A Guide to Optimizing Video Surveillance to Enhance the Retail Environment


Video surveillance continues to be a valuable tool for security and loss prevention in the retail environment. In fact, video surveillance for loss prevention is needed today more than ever to help prevent theft, minimize organize crime and address internal fraud and shrinkage.

New technology capabilities are enabling retailers to scale their infrastructure using video as the platform.

Get Verint's complimentary guide on "When to Leverage Video as a Platform" and see what new tools are available to help tackle retail challenges, optimize operations and drive bottom-line growth.

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Kirk Diegel was promoted Vice President of Asset Protection - Field for Follett Higher Education Group.
Dustin Wells was named Regional Loss Prevention Manager for US Trucking and Distribution for Savers.
Nicole Campion was named Market Loss Prevention Manager for Gap Inc./Old Navy.
Keith Gregory was promoted Regional Loss Prevention Manager for CVS Caremark Inc.

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Your Career
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How to Get a Higher Salary Than They Want to Give You  If you're in the process of landing a new job, or even if you're still looking, it's helpful to know how to negotiate for the best possible salary. Use these tips and strategies to help you with this process. (Push for a higher number)

Perfecting Your Personal Pitch
Selling yourself is very tough. We want to do well so our emotions can get the best of us when we are intimidated and that can result in some bad habits. Here are some pointers to help you out. (Read the room)

How to Frame Your Negotiations So You Won't Dread Them  Everyone will encounter a situation where they need to negotiate with someone. It's an unavoidable part of life, but it doesn't need to be viewed as a competitive situation. If you can view negotiations in this way, they will become easier to handle. (Not win or lose)

Speaking Effectively: Are You Making These Mistakes?  The ability to convey your ideas effectively is sometimes as important as the ideas themselves. How you speak could make or break your goals you're trying to accomplish! (Not too fast)

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Tip of the Day
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Asking for advice is a great thing and we all need it from time to time merely because as the old adage goes we're too close to the trees to see the forest. However, the key is who you ask for it and what are their agendas, because we all have them and even well-intentioned advice can be swayed by an individual's need or desire to accomplish their objectives. Advice is the easiest thing to give and the hardest thing to practice. But getting a second opinion is always good. You've just got to realize that we're all just humans and even the best advice givers and mentors are influenced by their own needs.

Just a Thought,
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