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April 25, 2012 SUBSCRIBE

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Moving Up

Joe DeChristopher was named Director of Safety for National Amusements. Prior to joining with National Amusements, Joe spent 10 years with Bed Bath & Beyond as the Director of Loss Prevention Concepts - Christmas Tree Shops/Buy Buy Baby. Before that he was the Director of Loss Prevention for Millbrook Distribution Services. Congrats Joe!

Wal-Mart creates new position - the Global FCPA compliance officer which will be responsible for ensuring that all Walmart divisions comply with the U.S. Foreign Corrupt Practices Act. This person will also oversee five FCPA compliance directors based in the international markets. David Tovar, VP corporate communications for Walmart added that in Mexico, specifically, Walmart has implemented enhanced FCPA compliance measures including robust policies and procedures; internal controls; training; enhanced auditing procedures; and issue escalation and remediation protocols. (Source

Meanwhile Wal-Marts vice-chairman, Eduardo Castro-Wright, one of the executives identified in the Times article as a driving force behind the bribery in Mexico, resigns yesterday from the board of MetLife, on which he has served since 2008. In his letter to the board he wrote "Over the past weekend, I notified you of recent events that will require my immediate and personal attention," he said in his letter of resignation, adding later, "I now must focus my energy in spending personal time with my family and in protecting my good name and business reputation." He's scheduled to retire from Wal-Mart this summer. Mr. Castro-Wright was identified by a former company lawyer in Mexico as the driving force behind years of bribery when he was in charge of Wal-Mart de Mexico. (Source

Our professional integrity and responsibilities always out weighs the company good. Or does it? You make the call - one day We've all seen the news about the Security Director who destroyed reports about the safety problems leading up to the mine disaster that killed 29 men and who is now serving prison time. Yesterday we saw where French police have searched a security executive's home and office trying to find evidence if Ikea went too far with their investigations and surveillances of employees and angry customers. And now we see where U.S. Federal authorities are charging an engineer who allegedly deleted text messages - evidence - about the BP oil spill. Right after everyone in the world hears Wal-Mart allegedly paid $24M in bribes to open stores in Mexico. And one has to assume that in that case someone very close to the matter, if not a security executive themselves, may have talked to an investigative journalist. That story will come out soon enough. The bottom line is that when we allow corporate objectives to out weigh our professional responsibilities lives can be ruined and even lost in some cases. One day even you may be tested. What direction will you take?

While the U.S. clamors for investigations into Wal-Marts bribes - In Mexico it's life as usual. With their federal government saying it has no jurisdiction in the case and the state and local governments saying no one was named so they're not opening a case either. "This is an endemic vice, a vice that leads us nowhere," front-running presidential candidate Enrique Pena Nieto told The Associated Press in an interview Monday. "There is a truly critical situation in the country." The cost of doing business in Mexico just went up while in Mexico they're just ignoring it. (Source

The IOBSE (the International Organization of Black Security Executives) conference hosted by Sears Holdings last week was a huge success and just well done by their entire team. Led by their president, Suni Shamapande, Divisional Vice President of LP for Sears Full Line stores, and heavily supported by Keith White, Sr VP of LP and Administration for the Gap, this somewhat smaller conference had a unique and very professional flair to it. With its focus on the college students they truly hit their mark with a great agenda and some great speakers. They truly took developing students to a new level. Their selection process of students must be commended as the more than 40+ students all reflected a level of professionalism and passion that any company would be thrilled to have on their team. We strongly recommend any of the students for internships and even entry level positions in our industry. And if anyone is interested in contacting them please feel free to send us an email and we'll forward it accordingly.

Armored car guard found two months after theft with $1M left from $2M theft. An armored car guard accused of killing his partner in Pittsburgh and making off with more than $2 million was arrested in Florida on Tuesday after nearly two months on the run when someone called Pittsburgh police to report his whereabouts, authorities said. We don't normally report on armored cart heists with one happening almost every month. And the vast majority always involve one or more of their own guards. (Source

Two more Secret Service agents resign and one other may be fired over the Colombia prostitution scandal The news came shortly after President Barack Obama, taping an appearance on "Late Night with Jimmy Fallon," blamed the uproar on "a couple of knuckleheads" in an otherwise "incredible" agency. (Source

Amazon will begin collecting sales tax in Nevada starting Jan. 1, 2014 or earlier if a federal law is enacted that allows states to mandate sales tax collection by online retailers. The terms of the deal with the state’s Department of Taxation is similar to recent deals Amazon has signed with other states, including Virginia, Indiana and Tennessee. This is inevitable and all states will follow sooner or later. But according to recent surveys Amazon will still be on average 8% cheaper than Best Buy. (Source

Watch out office supply retailers - here comes Amazon - with 500,000 items at Already the largest consumer e-commerce site, it is turning its attention to corporations and businesses with the launch today of, a business-to-business e-commerce site. (Source

The Wal-Mart loss prevention employee who shot and killed the shoplifter last Friday in College Station, TX, quit his job. Dustin Batson, a 25-year-old who worked as a loss-prevention officer, was not asked or encouraged to resign, according to Walmart spokesman Greg Rossiter. He had escorted accused shoplifter Michael Bradshaw to a private office inside the Walmart at Brothers Boulevard and F.M. 2818 just after 4 p.m. Friday when Bradshaw tried to leave, then tussled with Batson as well as at least two other Walmart employees, police said. Two of those in the room told The Eagle last week that Bradshaw pulled a gun from the pocket of his pants and fired one shot, which hit a file cabinet as the employees wrestled with him. The pair said they took off, leaving Bradshaw and Batson. The loss-prevention officer later told police that he was able to get the gun from Bradshaw but that Bradshaw quickly pulled out a knife, prompting Batson to turn the suspect's gun on him. (Source

The National Retail Federation predicts Mothers Day spending to hit $18.6B with the average person spending $152.52 up from last year's spend of $140.73. (Source

Most IT and security professionals see Anonymous and hacktivists as serious threat to their companies and most likely to attack during the next 6 months. Sixty-four percent of the nearly 2,000 IT professionals who participated in Bit9's 2012 Cyber Security Survey believe that their companies will suffer a cyberattack during the next six months and sixty-one percent of them chose hacktivists as the likely attackers. (Source

The 8th annual UK Online Fraud Report, courtesy of CyberSource is out now. (source


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2012 Southeastern Retail Crime Conference. May 9th. Atlanta, GA

Ohio Regional Organized Crime Coalition (OROCC)

1st Annual Ohio Crime Symposium

June 6, 2012
Columbus, OH

here for more information.

NRF LP Conference June 20-22

National Food Service Advisory Council Conference. August 5 -8.

2012 Retail
Loss Prevention

September 12, 2012
International Centre


Watch for our article the day after each event!

Washington State Organized Retail Crime Alliance (WSORCA)

Annual Training Conference
October 18, 2012

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FedEx driver busted in sting operation set up by Texas Department of Public Safety after AT&T Asset Protection department suspected him of stealing cell phones from deliveries Investigators put together a box to be shipped on the 34-year-old's route containing five phones. According to the warrant, two of the phones were bait phones equipped with GPS so authorities could track them. During his route, the arrest warrant states that Silva stopped at his home in the 3400 block of W. Commerce. That's where investigators say a man in a Kia picked up a small-to-medium sized box from Silva. They tracked that suspect to a local cell phone store where he carried in three boxes. Investigators said the bait box they assembled was found frayed with changes to the packaging. They reportedly found one of the five phones, initially placed in the box. Silva was arrested on a charge of organized retail theft. (Source

ORC Trio of women busted in Madison, Wisconsin after hitting Kohl's. The three suspects were arrested after fleeing Kohl's and police found a wire cutting tool, several large empty purses, and merchandise from several stores in their vehicle. One suspect admitted she and her accomplices had been involved in several acts of retail theft that day. More clothing items from Kohl's were found, as were several boxes of cologne - they also came from Kohl's. (Source

ORC member who had been hitting Philadelphia Premium Outlets gets 6 to 23 months in jail. Working with two other suspects they had hit a Neiman Marcus store with shopping bags and tools to remove security tags and filled the bags with jeans. All three were apprehended. (Source

Video of N. Portland raid

North Portland raid finds fencing operation and drug house with a courtyard filled with merchandise. Tactical officers raided this north Portland home and found merchandise piled up in the courtyard. Police are still investigating. (Source


Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
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Darren Jackson
If the Public Only Knew The Truth

Submitted by Darren K. Jackson, LPC
Retail LP Professional

April 24, 2012

The Ripple Effect of ORC and the impact it has on our communities, cities, counties, and states, as well as retailers, associates, and consumers. Texas retailers lose a combined $2.5 billion in losses as estimated in 2009. With this said if sales tax is an average of 8 1/2 % this equates to more than $200 million in sales tax revenue losses. If a law enforcement officer makes $25,000 a year this amount alone would fund well over 8,000 police officers to help fight crime on the streets. Of course this depends on the average salary of an officer, etc. The difference between ORT and ORC is that ORT is strictly theft, and ORC includes theft as well as all financial crimes combined. The loses suffered by both of these equate to almost double that of all other property crimes combined to include burglary, auto theft, etc. The way the cities, counties, and states lose sales tax revenue is when merchandise is originally stolen there is no sales tax paid for it which is a sales tax revenue loss. When merchandise is sold online, typically in some states sales tax is not charged which is another sales tax revenue loss. These sellers typically buy the merchandise for 30 to 50 cents on the dollar and turn around and sell it for 70 cents on the dollar, which creates unfair and illegal competition to business and retailers because people have to have jobs in order to survive. When stolen merchandise is returned to the retailers and full price is given back, the sales tax is given back also to the criminal which is another sales tax revenue loss. They make no investment, just steal, and make a huge return on zero investment or risk.

How is this fair to all of us who are hard working Texans that are doing everything we can to make ends meet, and take care of our families? As a result of these staggering losses, retailers and businesses have to raise prices to primarily cover these losses, or to offset the increased expenses caused by the losses, and this is a two edge sword, because if you aren't competitive on price, no one buys your merchandise. If no one buys your merchandise, you don't have sales. If you don't have sales, you don't have associates, therefore additional taxes aren't generated. When there are no jobs, no money is being spent in the economy therefore no sales tax is being generated. No sales tax being generated means there is no city, county, or state government. No government means no police on the street to fight crime, and no fireman to fight fires, and no city, county, or state services. Businesses become less profitable due to these losses as they have to pay for payroll, rent, utilities, etc. and spend tons of money to protect their merchandise so that the doors stay open, there is merchandise to sell, and so that cash can be put in the register to pay for all of these, therefore retailers have to do a lot to stay in business. Those that simply can't afford it don't stay in business very long, which once again causes sales tax revenue losses.

When merchandise is sold at a flea market or swap meet, etc. often times sales tax is not charged which is a sales tax revenue loss also. The majority of these transactions are cash. The Comptroller's Office only has so much manpower to enforce whether the state gets sales tax revenue or not, as flea markets and swap meets are not as regulated as they need to be. Retailers and businesses pay large sums of money on taxes, but the criminals and their enterprises don't. They typically pocket every cent. ORC is driven by greed just like other crimes. It has been shown that ORC has connections to drugs, prostitution, human smuggling, guns, terrorism, etc. Anything of value is traded for cash. Merchandise, store credits, gift cards, etc. The reason for this is because they all have street value, and are all typically exchanged for dope, sex, etc. for the tools to commit the crimes, which funds almost every single criminal enterprise. Drug enterprises are now moving into the ORC arena because it's high profit, and less risky.
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Then there's health risk of selling expired or left in extreme heat or conditions. In this day and age, the differences between law enforcement, and retail investigators needs to be put aside, in order to develop strong partnerships and communication through synergy is extremely crucial in order to work jointly to successfully dismantle these criminal enterprises. Taking their money and assets, as well as having strong penalties for their crimes is the key! Asset forfeitures also have the potential to add even more money back to the cities, counties, and state also.

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Vendor Spotlight

Axis Announces Its Most Affordable Network Cameras with HDTV Resolution, Edge Storage and AXIS Camera Companion Support

AXIS M1013 and AXIS M1014 Network Cameras offer SVGA and HDTV 720p resolutions with H.264 compression and embedded MicroSDHC card slot

CHELMSFORD, Mass. – April 25, 2012 – Axis Communications, the world leader in network video, announces its first additions to the affordable AXIS M10 Network Camera Series with support for edge storage and AXIS Camera Companion: AXIS M1013 and AXIS M1014 Network Cameras. The SVGA and HDTV 720p models with discreet design and built-in slot for MicroSDHC card storage are perfect for securing small businesses, restaurants, hotels and convenience stores.

The neat and affordable AXIS M1013 and AXIS M1014 Network Cameras have support for edge storage and AXIS Camera Companion."The new IP cameras in the AXIS M10 Series with MicroSDHC card and NAS support offer the perfect complement to the easy-to-install and intuitive AXIS Camera Companion solution we launched last month for 1-16 camera systems," said Fredrik Nilsson, general manager, Axis Communications, Inc. "Innovations in IP video surveillance continue to make the technology more and more affordable for small camera count installations. With these new network cameras with edge storage, we can offer a standalone four-camera IP surveillance solution for less than $1,000."

At full frame rate AXIS M1014 offers HDTV 720p / 1 megapixel resolution, while AXIS M1013 offers SVGA resolution. These indoor-only AXIS M10 Series models feature additional IP benefits including motion detection, tampering alarms and advanced H.264 compression to reduce storage costs and bandwidth. The fixed network cameras also have edge storage support for both in-camera MicroSDHC cards and complementary network shares such as a Network Attached Storage (NAS) device. This allows users to build cost-efficient and reliable edge recording solutions, or take advantage of additional storage redundancy.

AXIS M1013 and AXIS M1014 Network Cameras also feature support for AXIS Video Hosting System with one-click camera connection, making the cameras ideal for a hosted video solution.

"Small system surveillance users who were typically relegated to using outdated analog systems because of cost and perceived complexity can now enjoy the resolution, full frame rate and color fidelity of HDTV-quality IP surveillance – all without compromising the budget," said Nilsson.

While AXIS M1013 and AXIS M1014 Network Cameras will work with any IP-based video surveillance system, the compatibility with AXIS Camera Companion makes this product release especially compelling. AXIS Camera Companion is an all-in-one, easy-to-use IP-based surveillance solution consisting of Axis cameras and/or encoders, SD cards, a switch or router and free recording software. Each camera serves as an independent surveillance device, recording video to its own internal SD memory card – this means that there is no single point of failure for the system and no additional onsite recording hardware or computer is needed for operation.

Click to see AXIS Camera Companion videos on installation, ease-of-use and customer testimonials.

AXIS M1013 and AXIS M1014 models are supported by AXIS Camera Station and the industry’s largest base of video management software through the Axis Application Development Partner Program. The cameras also include support for hosted video and ONVIF compatibility for easy camera system integration.

AXIS M1013 and AXIS M1014 Network Cameras are expected to be available in Q2 2012 at the suggested retail prices of $179 for AXIS M1013 and $229 for AXIS M1014.

Matt Flanagan
fama PR, Inc.

Domenic Locapo
Axis Communications Inc.

Axis Communications

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Joe DeChristopher was named Director of Safety for National Amusements.
Michael Mills
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Tip of the Day - Sponsored by Vector Security

Individual growth is an overly used phrase for something that is extremely difficult to truly accomplish. Corporate America tends to force it faster than many can absorb. Out of necessity or by design it requires a mental investment and a conscious effort on the part of the executive to truly grow beyond their current capabilities. Consequently, growth is oftentimes as a result of direct force or life-changing events. But it is a necessity if one expects to advance and stay current with the industry. Technology represents the Loss Prevention industry's biggest opportunity for growth and if one expects to be a leader tomorrow it would be wise to grow your technology education.

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