29 minute read
CERTIFICATION
Who Is Getting Certified?
While earning one’s certification is certianly self-satisfying to the individual who has taken the iniative to test themselves against the benchmark established by our industry, the board of directors at the Loss Prevention Foundation also believe those earning their LPQ or LPC certifications should be recognized by their peers. Following are both LP executives as well as young professionals who have recently earned certification.
Vice Presidents and Directors
Kevin Ach, LPC, Sr Dir, Pricing Compliance and Ops, Office Depot Ken Amos, LPC, DVP of LP, Walgreens Lee Bland, LPC, Dir of LP, Stage Stores David Brandt, LPC, Dir of LP, Walgreens Mark Gaudette, CPP, LPC, Dir of LP, Big Y Foods David George, LPC, CFI, VP of AP, Harris Teeter Keith Harmon, LPC, Dir of LP, Rite Aid Richard Holter, LPC, Dir of LP, Heartland Automotive Services Octavio Jara, LPC, Dir of LP, McDonald’s Frank Johns, LPC, Chairman of the Board, LP Foundation Henry Johnson, LPC, CFI, Dir of LP, Family Dollar Stores Paul Jones, LPC, Global Dir AP, eBay Patrick Kerby, LPC, Dir of LP, Advance Auto David Lund, LPC, CFI, VP of LP, Dick’s Sporting Goods Kevin Lynch, LPC, Exec. Dir, Bus. Dev., ADT Security Services Michael Mays, LPC, Dir of LP, Cub Foods Wayne McBrian, LPC, Dir of LP, Brookstone Christopher McCray, LPC, Dir Field AP, Best Buy Michael Miller, LPC, Dir of LP, Walgreens Mark Mnich, LPC, Dir of LP, Giant Eagle Walter Mulhall, LPC, PHR, CHS, Dir of LP, Austaco LTD Taco Bell Mark Neapolitan, LPC, CFI, Dir of LP, Sterling Jewelers Andrew Palmer, LPC, Sr Dir, Pharmacy LP, Rite Aid Steven Palumbo, LPC, CFI, Dir of Ops-Security, Tiffany & Co. Adam Parker, LPC, CFE, CPP, Dir of LP, Lamps Plus Dan Provost, LPC, VP of LP, Staples Libby Rabun, LPC, VP of LP, AutoZone Robert Sinning, LPC, Div. LP Mgr, Cub Foods Thomas Stein, LPC, Sr Dir of AP and Risk Mgmt, Ollie’s Bargin Centers Paul Stone, LPC, VP of LP, Best Buy William Turner, LPC, Sr Dir Retail Ops, Nike/Cole Haan Kevin Valentine, LPC, CFI, VP of LP, Sterling Jewelers
Recent LPC Recipients
William Alford, LPC, CFE, Pres., International Lighthouse Group Anthony Berger, LPC, LP Manager, Rite Aid Paul Borosavage, LPC, AP Dist Mgr, Rite Aid Paul Braun, LPC, CFI, Reg. LP Mgr, Sterling Jewelers Johnny Custer, LPC, CFI, Dir Crime DataShares, Verisk Crime Analytics Joe Davis, LPC, CFI, Sr Mgr, LP South, T-Mobile USA Jennifer Dayss, LPC, CFI, Reg. LP Mgr, Sterling Jewelers Albert DiLorenzo, LPC, Reg. LP Mgr, Coast Guard Exchange System Gayle Divis-Buck, LPC, LP Mgr, Kroger Robert Dworkin, LPC, LP Professional Brian Finnicum, LPC, Reg. LP Mgr, Sterling Jewelers Maureen Fuller, LPC, LP Field Mgr, Big Y Foods Anthony Hayes, LPC, LP Mgr, Rite Aid Lance Incitti, LPC, Sr Search Consultant, Retail Placement Solutions Shawn Jenkins, LPC, Reg. Dir of LP, Rite Aid Carl Johnson, LPC, CFI, Reg. LP Mgr, Big Lots Darren Jackson, LPC, Dist Ops Mgr, Home Depot Kelley Jones, LPC, Reg. LP Mgr, T-Mobile USA Joe Kertis, LPC, CFI, Reg. LP Mgr, Finish Line Darcy Layman, LPC, Idaho LP Mgr, SUPERVALU Paul Leasum, LPC, CFI, Reg. LP Mgr, Sterling Jewelers Jeffrey Levitt, LPC, CPP, Sr Mgr AP, Panera Bread Jason Locklier, LPC, LP Manager, Rite Aid Petur Magnusson, LPC, Sec. Mgr, Norvik Hf. Laura Miller, LPC, LP Dist Mgr, Farm Fresh (SUPERVALU) James Morris, Jr, LPC, LP Dist Mgr, Rite Aid Thomas Nystrom, LPC, LP Dist Mgr, Rite Aid Farrah Parrott, LPC, CFI, LP Mgr, Rite Aid Rick Pfeifer, LPC, LP Sr Mgr, Ascena Retail Group Eric Pidgeon, LPC, CFI, Sr Mgr, Corp. LP, Tween Brands Tina-Marie Pilate, LPC, AP Div. Mgr, Wegmans Food Markets Timothy Rang, LPC, LP Mgr, Rite Aid Darren Short, LPC, LP Dist Mgr, Rite Aid Robert Simmons, LPC, LP Field Mgr, Western Reg., Columbia Sportswear Robert Sinning, LPC, Div. LP Mgr, Cub Foods Matthew Speidel, LPC, LP Professional Adrian Strayer, LPC, Reg. LP Mgr, Weis Markets Aaron Wichmann, LPC, CFI, Reg. LP Mgr, Sterling Jewelers
Smith is president of The Loss Prevention Foundation, the not-for-profit organization charged with the responsibility of managing certification. He was formerly president of the industry’s largest executive search and consulting firm. During the past fifteen-plus years, Smith has provided career counseling for thousands of industry professionals nationwide. He can be reached at 704-837-2521 or via email at gene.smith@losspreventionfoundation.org.
Recent LPQ Recipients
Robert Balla, LPQ, Sprint Hedgie Bartol, LPQ, Axis Communications Amanda Blair, LPQ, Pep Boys Emile Boules, LPQ, CVS Caremark Deborah Giordano, LPQ, Pep Boys William Grider, LPQ, Ross Stores Joseph Harris, LPQ Marichelle Higashitani, LPQ, Best Buy Canada Carlos Johnson, LPQ, jcpenney David Kline, LPQ, Town Shoes & The Shoe Co. Timothy Larson, LPQ, Sears Holdings Jenny Ly, LPQ, Banfield: The Pet Hospital Freddie Panen, LPQ, Philippine National Police Christopher Prejean, LPQ, Cabela’s Wendy Rosasco, LPQ, Pep Boys David Scott, LPQ, Goodwill Industries of San Diego County Christopher Shea, LPQ Adam Smith, LPQ, Southern Wine and Spirits Felix Soto, LPQ, Coast Guard Exchange System Amanda Troxell, LPQ, Rite Aid Don Walker, LPQ, Academy Sports + Outdoors
ORC—Just the mere acronym conjures up a myriad of passionate opinions about many debatable “facts” describing organized retail crime. Here are two of the issues often debated. 1. How big of a problem is ORC really? Can we label it with a dollar amount?
According to the National Retail Federation’s (NRF) 2011 Organized Retail Crime Survey, ORC losses total an estimated $15 to $30 billion annually. However, the caveat is given that precise measurements of the “true scope” of the problem are difficult to determine.
Just recently at the Food Marketing Institute asset protection conference in New Orleans, Eric Ives, supervisory special agent of the FBI’s organized crime/major theft division, told the attendees that the U.S. Department of Justice has no idea how big a problem ORC actually is to the retail market.
Obviously major stakeholders in the fight against ORC aren’t in agreement about how big a financial problem it is—just that it is a major problem that needs addressing. 2. Isn’t this just shoplifting with a sexy name?
This debate seems to be settling down a bit with organizations like the NRF and LERPnet trying to assign definitions to the elements of ORC. Also, there are retailers showcasing their efforts to defend their shelves against ORC by hiring task forces to combat the “growing epidemic.”
Laura Baverman of The Cincinnati Enquirer took an in-depth look at ORC in an article that was picked up nationally by USA Today. In the article “Retailers Reining in Sophisticated Theft Rings,” Baverman reports, “This [ORC] illegal activity is nothing like shoplifting, an opportunistic crime by one person.” She quotes Detective Brian Kane of the Covington Police Department, referring to people that make up ORC rings, “It’s a job. They get up in the morning and that’s what they do.”
But there are still those in the industry that lump stealing retail goods…no matter what happens after the theft…as shoplifting with a sexy name. “Back in the old days you didn’t have labels like ‘ORC.’ You just had people stealing stuff,” says an LP professional with more than forty years’ experience. “Stopping the opportunist and stopping the ORC professional comes down to the same principles we all know and implement— customer service, employee awareness, and having solid prevention techniques across the board.”
The divide on this particular debate seems to be closing. The NRF spends a whole section in its 2011 ORC survey defining the activity, elements, members, and tools of the trade ORC rings use.
“It really took people like Paul Jones and King Rogers talking about ORC on a larger scale to start getting the industry to take notice and differentiate ORC groups from the average opportunist,” says Joe LaRocca, senior advisor of loss prevention for the NRF.
“Over the past five years, the conversation has begun to change about ORC,” suggests Mike Battles, CFI, regional LP manager for Stage Stores, who currently oversees district LP managers in Texas and the company’s ORC efforts. “It’s no longer asking if it’s a real problem, but we now see local and national groups being formed to help support
the anti-ORC efforts across the country.”
Instead of discussing the ongoing debates on the ORC topic, this article series will discuss two entirely different issues at hand: ■ Part 1—What are the dos and, perhaps more importantly, the don’ts for LP professionals investigating ORC? ■ Part 2—Given the increased focus on ORC by retailers and the advancement in vendor solutions to detect and prevent ORC, why is ORC statistically getting worse and what more, if anything, can retailers do internally about the ORC problem?
This article’s findings are the result of more than thirty retail and law enforcement interviews expressly asking for opinions and thoughts on the topic. It does not represent the author’s opinions, personal views, or experience on the subject.
In general the interview responses led to these five recommendations of how not to investigate ORC. Don’t… ■ Go in cold to law enforcement and ask for help. ■ Hand detectives a loose-leaf folder of papers. ■ Stay in your office. ■ Take the law into your own hands. ■ Ignore your role in the problem.
Go in Cold to Law Enforcement and Ask for Help
Going in “cold” to law enforcement and asking for help is like showing up for a blind date with an engagement ring; it only makes sense if you’re desperate, and you probably won’t be successful.
When talking with law enforcement personnel, they readily admit that taking property-crime cases to prosecution isn’t their top priority. “District attorneys never really
want to prosecute property crimes because it is the lowest on the priority list,” says a FBI representative that works with ORC cases. “Let’s face it. They are dealing with terrorism, major white-collar crime, as well as homeland security issues. There is only so much time in a day.”
But for heads of ORC task forces or LP professionals responsible for making a dent in their company’s theft problem, the industry needs law enforcement partnerships to prosecute successfully.
“The biggest mistake LP professionals can make is going in cold and unprepared to law enforcement,” advises David E. Zulawski, CFI, CFE, chairman and senior partner at Wicklander-Zulawski & Associates. “A
“I have been on both sides—law enforcement and retail. It comes down to collaborating together because sharing and learning from each other are key components to success. It’s important to find common ground and set the stage for a long-term mutually beneficial partnership. Don’t show up just when you need something. Get involved and support local community events because the more you’re involved, the more people will be aware of your commitment to solving the overall crime problems, not just those that interest your company.”
great way to build these relationships is to start with a mutual contact to make an introduction.”
“I have been on both sides—law enforcement and retail. It comes down to collaborating together because sharing and learning from each other are key components to success,” says Mark McClain, CFI, director of asset protection investigations for Walmart. “It’s important to find common ground and set the stage for a long-term mutually beneficial partnership. Don’t show up just when you need something. Get involved and support local community events because the more you’re involved, the more people will be aware of your commitment to solving the overall crime problems, not just those that interest your company.”
Minia Morales, a divisional LP manager for Rent-A-Center, believes educating law enforcement on ORC is critical when starting to build the initial relationship. Morales points out that there are still some law enforcement agencies that don’t fully understand the scope of the problem and believe the ORC problem is just petty shoplifting. “Law enforcement doesn’t see the value of working with retail loss prevention and our backgrounds, but it is incumbent on us to educate them on behalf of the profession,” says Morales. “This education helps build the partnership you need when conducting an investigation. Having a preexisting relationship and level of comfort goes a long way and helps achieve results.”
Morales adds, “It’s not one-sided. We need law enforcement as much as they need us. And it’s not about ego. It’s about a partnership built on respect and mutual trust. If you have to conduct trash pulls, stationary surveillance, and inventory recovered product, just do it. This is a partnership and retailers should be sincere partners in fighting crime, not drawing lines on what we won’t do to advance the investigation.”
Every retailer interviewed for this article emphasized building solid relationships with law enforcement. This is not a new topic in the ORC discussion, but it was interesting the lengths that retail ORC task forces must go to increase the odds of successful prosecution or for law enforcement to even take the case.
“It’s a constant battle to combat the perception with many police departments that ‘retail never prosecutes,’” says Jason Adams, CFI, GAP Inc.’s national manager of ORC. “At GAP Inc. we are very consistent with prosecution. But as retailers we have to do our part to make it a priority and an easy next step for our law enforcement partners.” Adams adds, “It’s always our preference to present gift-wrapped cases on a silver platter to our law enforcement partners. We have strict guidelines on when and how to partner with law enforcement. Every police partner is so critical that we try our best to do everything we can to make their jobs easier.”
The law enforcement-retail partnership is seemingly a fragile relationship at times. While retailers must engage these vital partners, it definitely changes the rules once they are involved. Retailers must be able to engage these law enforcement contacts and trust them with their multiple weeks, months, and often year-long investigations because once they are involved, it changes the rules immediately.
“While it is important to engage law enforcement as early as possible in the process, we have to be mindful that it changes the rules,” says Brad Dykes, the new director of loss prevention for Cabela’s. “I would definitely bring them in early rather than risk not having the necessary information when
it comes to prosecution.” One of the benefits of involving police early is law enforcement’s leverage for potentially turning a suspect into an informant.
“If you start a case and decide to operate independent of police, that may be a good thing or bad thing depending on the police contact,” says Zulawski. “You need to ensure your contact can see the whole picture and isn’t going to feel you are stepping on his toes.” Zulawski points out the importance of knowing your police contact. Some officers might not mind being brought in on the tail end of an investigation while others want to know what’s going on from the beginning.
Rich Milburn, CFI is a former twenty-year veteran of law enforcement working on ORC cases with retailers. He offers a different perspective, but agrees that bringing in law enforcement changes the rules.
“It’s true that retailers must bring cases to law enforcement on a silver platter,” confirms Milburn. “They must have everything documented soup to nuts. But the retailer needs to know the detective is already well-versed in ORC, or it is a waste of time. Retailers must be aware that once they drop that case file into law enforcement’s hands, it changes the rules so everything better be complete.”
Stage Stores’ Battles adds, “The bottom line is we can’t accomplish what either one of us want—successful prosecution—without the other. Sometimes it takes the retailer educating the police about updated changes in legislation. Our laws can change quickly and could have important impact on your cases. Don’t rely on the police to always be up-to-date on every legislative change simply due to the sheer number of new laws passed each legislative session.”
Hand Detectives a Loose-Leaf Folder of Papers
We’ve all seen him—the totally unorganized coworker with mustard on his shirt, hair a mess, who looks like he just woke up. Would you trust that coworker with your most delicate project? Probably not. The same principles apply when working with law enforcement— organization rules.
“If you show up and throw a loose-leaf folder on their desk and expect them to jump at your case, you will not be very successful,” said Adams from GAP. “Also, don’t expect them to drop their entire case load to immediately go over your investigation. Being proactive, making an appointment, and being cognizant of the volume of work that they are tasked with is very important.” As we continue to educate the law enforcement sector on how professional retail LP people are, it’s paramount that we are diligent when it comes to documentation, organization, and thoroughness.
“Presenting your case to law enforcement is a make or break phase of the investigative process,” explains Adams. “It’s critical to ensure the presentation is organized and essentially gift-wrapped for your audience.” Adams’ case files are always equipped in chronological order with: ■ Case summary—the what, when, how, why of everything that has happened in summation style, ■ Internal reports filed depicting the case, ■ Police reports filed, ■ Witness statements, ■ Video evidence, ■ Investigative notes, and ■ Suspect information sheets.
“As LP professionals we need to understand how over-burdened police are with current case loads,” adds Adams. “Put together the case in a structured way that truly conveys the financial loss, the safety implications, community impact, and, if applicable, any other crimes that are above and beyond the retail variety, such as human trafficking and drugs.”
In addition to the case file documentation, it’s always important how you put that file together. In most cases chronologically is the best way to go according to ORC task force leaders. Mike Battles recommends compiling two case files—one case file to present to law enforcement and another to continually update with appropriate information that can be used to periodically update law enforcement’s copy so each file is comprehensive and up-to-date.
A twenty-year industry veteran, Battles’ case files are organized chronologically by known incidents and separated by tabs into the following sections: ■ Summary and table of contents, ■ Photos when possible, ■ Police reports, ■ Known loss reports with amounts, ■ Inventory lists, ■ License plates and suspect pedigrees, and ■ CD sleeves for video evidence.
The information in these case files should tell a compelling story, explaining the details, suspects, and incidents leading to the logical next step of action by law enforcement.
“Try to demonstrate the full loop of the crime,” says Debra Lussier, senior manager, central investigations team, for The Home Depot. “It is helpful when the full loop of the crime is demonstrated through reports, video clips, policy examples, et cetera. Resources are very slim for law enforcement, so retailers must make the link from relationships and suspects to dollar amounts and impact to your community so they accurately present it to their superiors.” The Home Depot has twenty-two people on its ORC task force with a small team in every major city to cover its 2,000 stores.
“A great example is when our team helped educate law enforcement on UPC switching,” explains Lussier. “At first glance, the transaction seems legitimate. But when we’re able to present all the supporting documentation, they understand, and it makes total sense to them.”
Organization of the details is of utmost importance, but according to Mark VanBeest, CFI, director of investigations at jcpenney, timing is also critical. One of the worst lessons to learn is not having your case information organized and ready when your suspect is detained…and they end up walking away uncharged.
“Organization and case preparation is key,” explains VanBeest. “Your case file must be presentation ready at all times. You never know when it might be time to convey all necessary information in a succinct way if you catch a break in your case or suspect is in custody.”
Not only is organization important, it’s important to understand how law enforcement writes reports and why.
“We are taught to write reports on a fifth-grade level so everyone can understand what occurred,” says retired law enforcement officer Milburn. “Keep complicated policies simple so when detectives need to translate it to a prosecutor, it can be understood and ultimately communicated to a jury or judge.”
“Loss prevention investigators should make sure that law enforcement is presented with all the pertinent case facts organized in a clear and concise manner so that all that is left to do is act,” says GAP’s Adams. “Remember every interaction with law enforcement shapes
continued from page 44 future interactions, and if you show up with too many folders, you probably won’t garner much future support.”
Stay in Your Office
Loss prevention professionals are not sales people…or are we? To investigators, the idea that they are in a sales role is like nails on a chalk board. But essentially, all LP professionals are in sales—especially ORC investigators trying to make friends with law enforcement, prosecutors, and other retailers.
Yes, your office is nice and cozy. You can see all your stores via remote monitoring. But are you serving your ORC efforts best by staying in your little domain? Probably not according to the retailers
and law enforcement representatives interviewed. Their advice is to get out into the community, shake some hands, meet people, share information, and support your company by supporting your community.
“LP investigators should pretend they’re in sales because good networking can build relationships to help solve crime in the community as a whole, not just for your organization,” says Dave Zulawski.
A fantastic example of networking and building relationships in their community is the work that Stage Stores has done over the past few years. “At Stage Stores we host our own networking meetings twice a year,” explains Battles. “At the first one we had twenty people attend. Now we have more than 130, including area LP professionals, local, federal, secret service, and even postal inspectors in surrounding jurisdictions. We’re able to meet, get contact information, and understand each other’s problems so we can help each other as a community. It’s not about just retail. It’s about supporting your community as a whole. There is no better way to make those connections than in person.”
According to Battles, “These events help educate law enforcement on our level of professionalism and our commitment to fighting crime. They will only know that by meeting us in person, attending networking events, and getting involved with Internet communication boards and email distribution networks. These initiatives help broaden your contacts so you can learn which detectives and others already support fighting ORC.”
“Of course networking is key,” says Milburn. “If you attend a networking function and aren’t meeting someone you don’t know, you’re wasting your time. It’s
always helpful to place a call after you’ve met them face-to-face and exchanged business cards.”
Networking in person is not the only way to broaden your ORC efforts. Sharing data is also extremely important to the overall ORC conversation. There are numerous local ORC groups that have become quite successful over the last few years with attendance growing exponentially each year. There are national information-sharing databases as well, such as the Law Enforcement Retail Partnership Network (LERPnet2.0).
“While we have retained the brand name as LERPnet, LERPNet2.0 is an entirely new technology platform and nothing like the original system,” says Kevin McMenimen, managing director of LERPnet2.0. “Retailers need to see the new system with its added functionality and features. Driven by an advisory board of more than twenty top retail companies, we have many of the major retailers represented as subscribers with the new system, which is evidence that it’s totally revamped and engineered to address the evolved needs of retail and law enforcement.”
“Information-sharing systems such as LERPnet help identify national trends and enable us to work more efficiently at the national level by helping us tie cases together,” explains jcpenney’s VanBeest. “We also believe it vital to our efforts to network with local groups to share data. Sharing data at the grassroots level gives retailers a more eye-level look at organized theft groups where most investigations are initiated.”
“I agree it’s absolutely important to network and information share in your local community,” adds McMenimen. “But it’s also as critical to be proactive in your investigations so trends and patterns are visible across the nation and that data is highlighted and alerts you to crime patterns that are headed in your local direction. LERPnet allows that to be possible in surfacing the national trends while supporting the local investigation efforts.”
Networking and sharing information are always valuable tools. To take that strategy a step further, jcpenney implemented a shared practice among other retailers that helps law enforcement contact them directly with no middlemen.
“Another important step retailers can take is something we implemented from our friends at Walmart,” says VanBeest. “We created a for-law-enforcement-only email address and phone line. So no matter what law enforcement needs, whether it is local, state or federal, all they have to remember is one email address and one phone number. This direct line of communication goes straight to our investigations team, so we can respond very quickly. I would recommend this for any retailer because it’s been a valuable tool for relationship building with detectives and police regardless of jurisdiction.”
“It is most important when establishing an ORC team to put specific guidelines in place, especially around searching vehicles or houses, GPS tracking devices, or trash pulls. Conducting investigations in a safe way and not putting the team at risk is of paramount importance to Cabela’s. We ensure everyone abides by the applicable laws and engages in appropriate surveillance activities. The only way that can be done is by establishing those policies up front and communicating them effectively.”
- Brad Dykes, Director of Loss Prevention, Cabela’s
Take the Law into Your Own Hands
As an industry, LP professionals are often caught in the proverbial catch-22. After budget season concludes, they are often left asking themselves pointed questions such as: ■ How do I maximize resources for my increasing responsibilities without sacrificing quality work?
continued from page 46 ■ If I’m responsible for shrink, audit, safety, and internal theft, how can I get everything done with a smaller team?
In some instances these types of questions lead to LP investigators stretching that envelope a bit too far, even crossing into law enforcement’s domain. According to those interviewed, instances of LP people going “rogue” have definitely declined over the years as ORC legislation has passed and task forces formed with accompanying policies. But there was also plenty of evidence that it still occurs, although little agreement on what “going rogue” truly means.
“When it comes to LP people taking the law into their own hands, I think that it’s important that LP understands relevant laws so they don’t violate any that would compromise the investigation,” says Rent-A-Center’s Morales. “There are many different companies with varying policies and procedures. For instance, at one company you’re not allowed to conduct trash pulls, at another that’s okay because once it is abandoned on the curb, it’s public property. Of course, you always have to think safety first, and it is my preference to partner with law enforcement on everything we do because it makes the most sense.”
Morales concludes, “In my opinion, examples of rogue activity would be risking their safety by speeding through red lights following a suspect, taking pictures through windows of a private residence, or using certain type of equipment that only law enforcement has access to use.”
An industry executive for a small specialty retailer shared some firsthand knowledge of retailers allowing police to use their GPS tracking system when the police are lacking funds to purchase state-of-the-art equipment. Other questionable activities he talked about were LP people entering pawn shops to purchase stolen merchandise, approaching known fences in order to gain evidence, conducting surveillance on suspects’ private residences without law enforcement accompanying them, and LP agents meeting suspects in parking lots to ascertain what they have stolen and who they are working for.
Law enforcement also puts LP professionals in awkward positions since they want the cases wrapped up on a silver platter. Lieutenant Chris Neville of the Wilmington Police Department agrees, saying he has no problem with retailers handling a majority of the case since police departments are so strapped for time and resources.
“Some LP people could be crossing the line and putting their safety at risk by approaching fences or conducting controlled buys,” says Home Depot’s Lussier. “Our role is to gather evidence in safe and ethical ways that tells the most compelling story of events to law enforcement. That includes knowing what to leave to the experts, such as approaching an actual fence. However, Home Depot has highly skilled and highly trained personnel who will sometimes conduct controlled buys, but we always partner with law enforcement to ensure all elements for a successful prosecution are being met.”
Marco Alfredo Mitrowke, who has more than thirty years’ experience in the LP industry, believes passionately in ensuring the safety of LP people, retail customers, and law enforcement. “LP professionals are not cops,” says Mitrowke. “We cannot act like law enforcement. Don’t get me wrong, there are some ORC task forces out there doing good work because they have hired former law enforcement that are highly trained in the
continued on page 50
continued from page 48 necessary skills.” Mitrowke goes on to explain the fundamental principles about educating LP people that LP is not about catching bad guys. It’s about being partners in the overall business strategy.
“It’s also about being safe,” adds Mitrowke. “There have been too many incidents recently as crime continues to ramp up of violence that has only been exacerbated by loss prevention people instead of calmed down. We have a responsibility not only to our companies, but the public around us to keep everyone safe. The issues of liability to the companies we serve certainly outweighs the visions of glory in some big take down.”
Retailers agree that the safety of their customers and associates is of critical importance. How are they ensuring that, despite organizational pressures, ORC investigators are taking appropriate steps to keep everyone safe? Most retailers interviewed described strict policies and guidelines as well as intense training for investigation staff.
“It is most important when establishing an ORC team to put specific guidelines in place, especially around searching vehicles or houses, GPS tracking devices, or trash pulls,” says Cabela’s Dykes. “Conducting investigations in a safe way and not putting the team at risk is of paramount importance to Cabela’s. We ensure everyone abides by the applicable laws and engages in appropriate surveillance activities. The only way that can be done is by establishing those policies up front and communicating them effectively.”
“We always strive to build strong and sustainable relationships with our police department partners,” says Adams. “We know that we can’t do our jobs without them, so building a foundation of mutual trust is essential to any program’s success. At GAP we have strict guidelines for investigation decisions that happen in the moment, such as when, how, and where we follow a suspect. To ensure none of your ORC team crosses into the ‘rogue’ category, retailers need best-in-class training for their investigative team. Make sure that strategic direction is provided on what is acceptable and not acceptable when investigating ORC cases. Making impactful arrests and recovering merchandise is great, but safety and maintaining brand integrity should be your top priority.”
Of course, the retail trade associations feel very strongly about safety and ensuring the retail environment stays profitable and safe. “Ultimately, it comes down to awareness,” says Lisa LaBruno, vice president, loss prevention and legal affairs, for the Retail Industry Leaders Association (RILA). “Loss prevention professionals need to know where the lines are both professionally and ethically. It’s their responsibility to educate themselves and develop policies to ensure compliance before putting themselves and their companies at risk.”
As LP professionals, we face many ethical questions, and investigating ORC is no different.
“I definitely believe LP people can go too far when investigating ORC,” says Jerry Thomas, regional LP manager at HMSHost. “I hear a lot that LP people must help stretch the arm of law enforcement because we don’t have to play by the same rules that law enforcement does. But the question is always—just because we can do something that law enforcement can’t, does that mean we should?”
It is no question we are ushering in a new era of ORC legislation, standards, definitions, and ultimately how the marketplace will treat this crime and the LP agents investigating it.
“Retail professionals conducting ORC investigations now have a greater responsibility because they are treading new ground as the landscape is constantly changing on how we investigate and prosecute ORC suspects,” suggests LaRocca. “Everyone needs to ensure they work closely with their general council and internal department leaders to craft company policies and procedures dealing with these case elements.”
Mitrowke agrees stating, “As an industry we are at a crossroads. It should be a requirement for professionals to be Wicklander-Zulawski certified and certified from the Loss Prevention Foundation. These are ways to advance not only your own career, but this entire profession. No longer will we be perceived as ‘wanna-be cops,’ but as true business partners that care about profit-and-loss statements, meeting earnings and the bottom line.”
Ignore Your Role in the Problem
Let’s consider for a moment the proposed enormity of the ORC problem. When we start talking about billions, it’s difficult to relate. Ponder these illustrations: ■ A billion minutes ago Jesus was alive. ■ A billion hours ago man had not yet walked on earth. ■ A billion months ago dinosaurs walked on the earth.
Okay, so a billion is a lot. Is the retail industry really saying that flea markets, pawn shops, online auctions, and fraudulent returns are responsible for a $15 to $30 billion problem? Given the illustration above, it seems unlikely.
In the May-June, 2011, eBay column in LP Magazine, David George, vice president of asset protection for Harris Teeter Supermarkets, wrote a compelling description of the retailers’ potential role in proliferating the problem of ORC that asks the question, “Are we to blame?” George describes a process where retailers are actually generating the demand needed to keep these ORC rings in business. He contends that we are focused on preventing merchandise leaving through the front doors, but are not considering the potentially stolen merchandise that is coming in through the back doors.
As an example, George has implemented an anti-ORC buying program that has virtually eliminated the possibility that his organization would purchase stolen merchandise. “Although the Harris Teeter program reduces demand for stolen goods, we can’t do it alone,” says George. “It’s going to take all of us to put integrity first and take a stand to do the right thing rather than simply buying from the cheapest, unreliable, and low-quality source. We need to buy from reputable suppliers and at Harris Teeter, we accept nothing less.” In the May-June, 2011, issue he laid out exactly how to build your own anti-ORC buying program.
Part two of this series will explore this program in more detail and other ways retailers could be propagating the ORC problem along with actions retailers can take to help prevent the problem internally.
In the meantime, knowing that ORC generates tremendous discussion and debate, we invite readers to visit the magazine website and social networking sites to offer your opinions on the subject.
AMBER VIRGILLO is a contributing editor for LP Magazine. She can be reached at 770-335-4891 or AmberV@LPportal.com.
