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Picture: Mike Hagenbush
Mike Hagenbush, CFI, CFE
was promoted to Corporate Loss Prevention Manager for Sherwin-Williams Paints. Mike has been with Sherwin-Williams since 2009, previously holding the positions of Divisional Loss Prevention Manager and Regional Loss Prevention Manager - (Eastern U.S./Canada). Before joining with Sherwin-Williams, Mike was a District Loss Prevention Manager with Dick's Sporting Goods. Mike got his start in the loss prevention field at Target, where he spent almost six years as a Loss Prevention Manager. Congrats Mike, and happy birthday!

Europe's largest Mall - London's Westfield Stratford Mall next to Olympic Park closes for non Olympic ticket holders during day time on Friday and Saturday because of crowds The decision was made because gigantic crowds are expected on both days as the games roll into high gear with the first track and field competitions at the Olympic Stadium, which holds 80,000 people. Transport for London says the partial mall closures will be in effect from 10:30 a.m. until 5 p.m. on Friday and Saturday at Europe's largest mall, which has more than 260 shops, 70 restaurants and a 24-hour casino. (Source Associated Press)

The Supervalu cuts continue with 85 technology jobs cut. Supervalu spokesman Mike Siemienas says the information technology employees were given at least a 30-day notice of the layoffs. In February, about 130 Albertson's administrative employees in Boise were laid off as part of a company-wide cut of 800 jobs. The layoffs leave about 1,000 people at the Boise administrative office. The restructuring, which also involves some people changing responsibilities and some new hires, will impact about 390 total positions. (Source

"Operation In Our Sites" seizes 70 e-commerce sites and shuts them down for copyright infringement. Homeland Security agents seized the sites which brings the total to 839 sites seized over the past two years. They seized the assets of 70 web sites that closely mimicked legitimate sites but that had duped consumers into purchasing fake goods. (Source

9 busted after authorities raided several Lake County, FL stores and seized more than $100,000 worth of counterfeit merchandise. Agents with the state Division of Alcoholic Beverages and Tobacco -- which is under the Department of Business and Professional Regulation -- took part in the raid, along with the Drug Enforcement Administration, Lake County Sheriff's Office, and police departments from Tavares, Eustis and Lady Lake. Citing an ongoing investigation, Poreda would not give any details about what sparked the raid or if it only focused on stores in Eustis, Tavares, Lady Lake and Mount Dora. (Source

The number of Canadians who could be victims of one of the country's biggest losses of personal data could hit 4 million The Ontario elections agency simply loss two USB memory sticks with the voter names, addresses and dates of birth on the sticks. (Source

A new security project is monitoring in real time the price of stolen credit-card data sold in underground forums, which may eventually reveal emerging cybercrime trends. The company behind it, CloudeyeZ, is publishing the data it collects, called the "Underground Activity Index," daily on its website, said founder Dan Clements. The company offers several services centered around finding stolen data and matching it with the organization that was breached. CloudeyeZ, based in California, is collecting the data using bots, or automated programs that can scrape and collate data from seven of the major English-speaking forums. Hackers specialize in collecting card data and then sell it in the forums to other fraudsters, who try to buy goods online or create fake cards in an attempt to cash out. CloudeyeZ is monitoring more than 300,000 sets of card details, which mostly are U.S. cards including Visa, MasterCard, Discovery and American Express. Visa cards appear to be the most popular, which CloudeyeZ attributes to the large number of cards in circulation, which has also made those the cheapest cards at around $2 each. (Source

click to watch videoDashCam video of Shoplifter chased by police ends with 3 hospitalized after crashing through a red light. Kohl’s Loss Prevention contacted the Avon police, regarding a shoplifter who was carrying a baby. The suspect was not stopped outside the store, but police quickly observed the vehicle driving recklessly. The officer was in the process of calling off the chase when the shoplifting suspect‘s car ran a red light and struck another two cars. The suspect, the baby and the owner of a crashed vehicle all were taken to the hospital. The suspect is expected to be charged with robbery, drunken driving, child endangering and related offenses. (Source

Diamond heists in Wales has police looking for $2.5 million in stones. Seven robberies of employees of the wholesale jewelry industry in Wales have led to the police creating a Strike Force to further the investigations. Police are re-reviewing surveillance tapes and hoping to identify the suspects or other potential witnesses. (Source

click to watch video
65 year old woman takes on and shoots at 5 robbers in her jewelry store - they ran away! The men rush to the front of the counter and point handguns at the clerks and a customer. Seconds later the shots are fired and the men race back to the door, fighting to get out as the woman runs after them. The SUV left before three of the suspects made it back inside the vehicle. Police said they were picked up about a block away. Nothing was taken from the store and no one was hurt. Way to go Mam! (Source

click to watch videoN
ew Jersey Rolex thieves hit the same store again. Police are searching for a group of men who stole several watches from the Hamilton Jewelers on Route 1 this afternoon. Three men with bandanas covering their faces came into the store just before 12:30 p.m., smashed several glass cases filled with jewelry, stole an unknown number of watches and fled on foot. Police do not know if the men were armed. No shots were fired and one was injured during the theft, No arrests have been made. Lawrence detective has been sent out to investigate if a car that crashed on I-95 near Woodhaven Road may have been involved in the theft. In April 2011 the store was robbed of Rolex Watches worth $21,000 by three men, including one with a gun. (Source

Family of 4 caught shoplifting at Walmart near Daytona Beach. Police arrest a couple with two juvenile teens recovering nearly $3000 of merchandise from their car. The two teens 17 and 14 are now charged with felony theft, the oldest remains in the juvenile center and the youngest is going to juvenile safe house. The couple is now charged with grand theft and contributing to the delinquency of a minor. The entire 'family' took part in getting the merchandise out of the store; the older male suspect first ran leaving the family behind when police approached, only later giving himself up to police. (Source

There are 8 senior Loss Prevention positions available in the U.S. Actually there's been a sharp drop in the number of open Loss Prevention positions in the U.S. since June 1. What started out to look like a busy year now appears to be very modest growth with no large scale roll-outs like in the previous two years.

Quarterly Same Store Sales Results

American Eagle Outfitters 2Q up 9% with net sales up 11%
Neiman Marcus Q4 up 8% with total revenue up 9%
TJX Q2 up 7%
Gap Stores Q2 up 7%, Banana Republic up 7%, Old Navy up 3% with total revenue up 6%
HSN Inc Q2 up 6%
Target up 3.1%
Macy's Q2 up 3%
Publix Q2 up 1.9% with revenues up 3.2%
Big 5 Sporting Goods Q3 up 1% (first positive quarterly increase since 3Q 2010)
Kohl's Q2 down 1%
Aeropostale Q2 down 1% with revenue up 4%
Cigna Q2 down 3%
Wet Seal Q2 down 9.1%
Abercrombie Q2 down 10%
Gildan Q3 down 11%
Kellogg Q2 down 12%

July Same Store Sales Results

American Apparel up 20%
Gap up 12%
American Eagle Outfitters up 9%
Stage Stores up 7.9%
Costco up 7%
Ross Stores up 7%
TJX up 7%
Macy's up 4.1% with total sales up 5.1%
Target up 3.1%
Stein Mart up 2.8% with revenue up 2%
Publix up 1.9%
Nordstrom up 0.9% with their Rack stores up 9.7% and total revenue up 1.1%
Kohl's up 0.4%
Cato down 2%
Wet Seal down 12.9%


Cap Index

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Upcoming Articles

Gregg Smith, Director Loss Prevention -
The Children's Place - The First Year

"Transitioning to YOur New Job as an LP Director" by Mike Keenan, VP of LP for GAP North America. A Chapter From Retail Crime, Security, and Loss Prevention An Encyclopedic Reference


LPNN: Your LP, Attention Vendors, Film and Broadcast Your Video on Your Channel. Upcoming episodes: 2012 IOBSE Event Coverage; Se-Kure Controls; Keith White, Sr. VP of LP, The Gap Stores.

Know about an event we should feature here?
Let us know.

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

Disaster Recovery & Preparedness Committee (DRAP) Meeting. Chicago, IL - Sears Headquarters. August 17, 2012. Click here for more information.

11th Annual Virginia Retail Loss Prevention Conference - Virginia Beach, VA - Holiday Inn Hotel. September 6, 2012. Click here for more details.

Canada's Biggest Retail Loss Prevention Event. Mississauga, ON - International Centre. September 11-12. Click here for more information.

New England ORC Symposium & Trade Show - September 20, 2012 Worcester, MA - DCU Center

Watch for our article the day after each event!

CLEAR's 3rd Annual Training Conference, Dallas, TX. Sept. 18-20, 2012. Learn more here.

8th Annual Impact Workshop. Join other retail executives interesed in LP research on ORC prevention, packaging innovation, video analytics, benefit denial, plus much more. LPRC: October 15-17, 2012. University of Florida Campus. Gainesville, FL

Washington State Organized Retail Crime Alliance Annual Training Conference. Burien, WA. October 18, 2012. To register visit

2012 Thought Challenge Awards Committee

Northern Michigan University, located in Michigan’s incredible Upper Peninsula, offers one of the only baccalaureate loss prevention management programs in the United States. It is offered completely online and accepts up to 92 transfer credits. An affordable investment into a dynamic and growing profession. Learn more here

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"Transitioning to Your New Job as an LP Director" b Mike Keenan, VP of LP, Gap North America

Over the next few weeks the Daily will be publishing Mike Keenan's chapter   “Transitioning to Your New Job as an LP Director” from the book Retail Crime, Security, and Loss Prevention, 1st Edition, An Encyclopedic Reference.

Book authors Chuck Sennewald & John Christman
Published and released February 20, 2008.
Imprinted by Butterworth-Heinemann
ISBN: 9780123705297

 "Transitioning to Your New Job as an LP Director"

by Mike Keenan, CPP, CFI
Vice President of Loss Prevention
GAP North America

Are there LP personnel training programs in place? If a training program doesn’t exist, develop one. This should become a top priority for you. An effective training program is absolutely essential. Well trained people enable you to execute your operations effectively and consistently.

If there is an existing LP training program in place, review the content. Is it comprehensive? Does it cover all of the areas that are covered in the LP Operations Manual? Will it keep the company protected from legal challenges of inadequate training? Are the training programs managed by the LP Department or the company’s Training Department? Either way, the high risk that goes along with conducting internal and external investigations can be mitigated with thorough training. Multiple methods for training should be utilized. For example, written, video, E-Learning, on-the-job, classroom, etc. All training should be documented and individual training records should be maintained on each LP person. Training should be updated along with new policies and procedures.

The best way to ensure compliance to your policies and procedures by LP personnel is to have a disciplinary action process. If LP people violate the policies and procedures you put into place, there should be accountability. This will allow you to remove non-conforming employees who can put the company at risk by their actions. Effectively managing a disciplinary process will result in better consistency in your operations

Effective communication is extremely critical to the success of an LP Department. You must have some method of communicating timely information to the LP organization. This information can include new LP and/or company policies and procedures, investigative alerts, open jobs, etc. Some type of Communication Binder should be maintained in all field locations. This Communication Binder can be an actual binder or an electronic folder. An electronic folder that serves this purpose will depend on your company’s IT infrastructure.

Continued tomorrow -- click here to read what's been published so far

Mike Keenan is currently the Vice President of Loss Prevention for GAP North America. His prior experience includes sixteen years with Macy’s West where he started as an LP Manager and worked his way to Vice President of Loss Prevention. He then held similar LP positions with Ross Stores, Longs Drugs and Mervyns. He started his career with the Federal Bureau of Investigation. Mike has a Bachelor’s Degree in Criminal Justice from California State University, Sacramento. He has served on the NRF LP Advisory Council and was the Chairperson in 2001 and 2002. He is a licensed Private Investigator in the State of California. In addition, he taught Retail and Corporate Loss Prevention classes at Golden Gate University in San Francisco, California.

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LPNN - Loss Prevention News Network

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Los Angeles Organized Retail Crime
Associations Leaders

Learn how LAAORCA came together and evolved to become the
biggest ORC group in the U.S.



Season One Episode Release Dates

August 6

Suni Shamapande & two IOBSE members

August 7

George Logan & Oliver Wainwright

August 13

Se-Kure Controls



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"Operation Baby Steps" in Los Angeles ends in multiple arrests with cash and formula seizures. Los Angeles County Sheriff’s Department, FBI and Kroger ORC team seized in excess of $500,000 in Enfamil formula and over $750,000 in cash from this fencing operation. ORC teams from Ralphs and Food 4 Less partnered with Los Angeles Sheriff’s Department and the FBI for a 6 month ORC investigation conducting reverse buys of pallets of formula. FBI indicted 6 individuals and law enforcement executed 10 federal search warrants in 4 counties in the Los Angeles area. Article submitted by Denny Dansak, Corporate Manager, ORC for Kroger. (Source

A Minnesota woman has 30 identities, and was on an internet shopping spree every night. The victim said the bills and cards began arriving at his home early in June. He said he received bills from companies including Montgomery Ward, Midnight Velvet and Bargain Outlet, and that Amazon Visa and West Elm credit cards had been opened in his name. Among the items seized in the raid were the bedding, the slow cooker, the wing chair and the cordless vacuum purchased using the unauthorized credit cards; tablets of Ritalin and Xanax and items commonly used to smoke methamphetamine. Emily Jane Schlichter, 30, is charged with identity theft, which carries a maximum penalty of 10 years in prison and a $20,000 fine, and fifth-degree drug possession and receiving stolen property, each of which has a maximum penalty of five years in prison and a $10,000 fine. (Source

4 in Minneapolis plead guilty to creating fake documents and counterfeit checks used at retail stores to make expensive purchases and then returned for cash. In their plea agreements, the four individuals admitted to being part of a large-scale identity theft ring responsible for the theft of approximately $2 million from financial institutions in no fewer than 14 states. (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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Thought Challenge

Submitted by Lauren Maes-Forbey
Area Loss Prevention Coordinator
Stein Mart

Most mid-level and senior-level Loss Prevention executives pride themselves on running a tight ship. They spend countless hours on educating themselves, their teams, and making outstanding hiring choices. They want to hire the best; they want their team to BE the best!

But here's my thought: as a parent, you spend countless hours teaching your children responsibility, how to make proper choices and decisions. You then send them off into adulthood, safe in the knowledge that you know you helped shape a responsible human being. Why not extend that same trust and courtesy to your LP team?

When hiring the best, trust your team to make their own decisions. Those of us who have been in this industry a while are quite aware that we make million-dollar decisions every day. We make our decisions and do not take that responsibility lightly. In the past, I've worked for LP Managers who wanted me to verbally or otherwise account for every little decision I made throughout my day. Rather than worrying about how to do something right, I began to worry that I was doing something wrong-- that I would somehow forget to include some tiny detail that would earn me a lecture. I pride myself on being dedicated to my career and being flawless in my cases, yet in the past I never felt like I was trusted to do the right thing by my LP Manager or DLPM.

My point is this: If you hire the best, TRUST them to be the best! If you make a worthwhile employee feel like a failure, they will begin to doubt themselves, which is never a good thing. Unconfident people don't make cases. We want to look good, and we want our teams to look good, too! So trust us, will you? :)

Submit Your Thought Challenge and You Could Win $5K

More reader's comments on the article:

Age old study resurfaces; Does paying higher wages decrease employee theft?

Comments by Keith Nicholas:
It may help decrease it marginally, but the most effective way to decrease it would be through better management practices and enhanced interview process.

Better wages over minimum wage does help attract better candidates its hard to be competitive when many retailers and restaurants pay minimum wage or barely over it. If you pay minimum your quality candidates will be minimal.

Better wages along with providing an environment with better management practices, employee development and growth opportunities will increase your employees loyalty, increase retention, and enhance your internal pool of talented employees. All of which will help reduce D.E.'s.

Comments by Dave DiSilva:
I'm reading a great book on this topic. The Honest Truth about Dishonesty. by Dan Ariely offers a lot of insight on this topic- Highly recommend it.

Comments by Randy Guarneri:
I firmly believe that paying employees more will make them think twice about theft. I am going to have to take the contrarian view and quite different than the comments received yesterday on the subject.

But here's what I know:

First, with higher wages, you get a much better caliber person and they tend to care about their employer because of the morale in the store. There is no question about this point.

Second, these employees typically want to stay at their jobs and tend to take more pride in the work they do everyday. The turnover rate is also less than 4% when employees are satisfied with their current rate of pay.

I worked at a high end clothing retailer and these employees viewed their job as a true profession. When you add the commission they received, they were all about Customer Service and Selling. Very little "free time" to play and manipulate registers, or do fraudulent refunds, voids, Gift Cards, etc. If they did, they would be taking away from themselves and their daily sales and bonus!

Trust me, when they were off a day, each of them used to come to me when I was an LP Manager as soon as they walked in the door after punching in wanting to see the list of returns done from the previous day from their associate number and if and what the items were and if they were the true seller of the items. Most typically knew the customers by name and knew immediately if it was a legit refund backed out of the sales.

Comments on the Walmart Bomb Threats:

Comments by Jared Ring, a subject matter expert (SME) on Explosives Detection & Bomb Countermeasures":
Here in NY we had a threat (In Seacaucus, NJ) at Walmart which turned out to be another hoax call. Additional information was released today that the person responsible for the threats may be calling from Florida and that they were "Spoofing" their phone number, making the calls difficult to trace, and speaking in a "robotic" voice.

In an unrelated threat against Walmart a perp is in custody. Patchogue, NY High Schooler Bryant Vinas aka Bashir al-Ameriki was arrested for his plots against the US including a scheme to bomb Walmart by returning a TV packed with explosives. This guy was very serious and was involved in multiple plots, so don't discount threats against the homeland!

Comments by Teresa Cook:
Do you think the bomb threats are coming from the group that is highly involved in trying to organize the Wal-Mart workers into a union? I do not in any way mean any disrespect to any union based front activity just a thought. I was in Jefferson City MO. over the weekend and had just left the Wal-Mart when I observed the mass response of law enforcement that arrived at the store. Until the next day was unaware of the reason.

Submit your opinions, comments and articles here.

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Director of LP Analytics CVS Caremark Woonsocket, RI CVS Caremark
Dept Mgr Store LP & Safety Lowe's Utica, NY Lowe's
Dept Mgr Store LP & Safety Lowe's Slidell, LA Lowe's
Market AP Mgr Walmart Antioch, CA Walmart
Asset Protection Mgr Sam's G1 Madison Heights, MI Walmart
District LP Mgr Sears Pittsburgh, PA Sears Holdings Corp.
Loss Prevention Mgr Sears Las Vegas, NV Sears Holdings Corp.
Loss Prevention Mgr Sears Laredo, TX Sears Holdings Corp.
Loss Prevention Mgr Sears Holyoke, MA Sears Holdings Corp.
Loss Prevention Mgr Sears Tucson, AZ Sears Holdings Corp.
Loss Prevention Mgr Sears Brooklyn, NY Sears Holdings Corp.
Area LP Mgr Family Dollar Miami, FL Family Dollar
Market LP Mgr Old Navy Boston, MA Gap, Inc.
Regional LP Mgr Goodwill Industries of Central Indiana, Inc. Indianapolis, IN Goodwill Industries of Central Indiana, Inc.
Mgr Loss Prevention Home Depot Atlanta, GA Home Depot

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Michael Hagenbush, CFI, CFE was promoted to Corporate Loss Prevention Manager for Sherwin-Williams Paints.

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31 Telltale Signs You Are a Horrible Boss No one starts out their career trying to be a horrible boss. Yet it's amazing what a vast majority of folks seem to accomplish this feat with absolutely no training whatsoever. Maybe we're born bad bosses. It just comes naturally. Hopefully, you can shake off some of the worst traits.   (How many do you violate?)

10 Questions: Are You a Bad Boss? Or Do You Work for a Terrible Boss? This article, by Jack Zenger, takes the topic of the above article a little further. What is worse than having a bad boss? Being a bad boss and not knowing it. To help these leaders who really want to know how their subordinates feel about them, here's some research.  (Time to be brutally honest with yourself)
Bad Attitudes & Complaints: 6 Solutions for Workplace Negativity Negative employee attitudes and less-than-professional behavior can poison the workplace atmosphere. Here are six solutions for real-life issues from subscribers on handling problem employees before morale suffers.  ("personality" problems)

6 Business Lessons From the London Olympics Beckham, pounds, crisps, carry on: The British have taught us a few things this week at the Olympics. Whether you're attending the games in person or watching them on the TV, you can definitely learn a lot. Some of these lessons can be brought back and used for your own business.  (Be like the Brits)

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