(Source: Corporate Combat® case files)

“I have been waiting for this day to happen knowing that this could not go unnoticed for long and I feel like a great weight has lifted from me now that I can talk about this.

At this moment, looking back I know how wrong I have been. I have a sick feeling in my stomach because of what I did, not only to a company but to a very close personal friend which is XXXXXXX. He is by far the best employer that someone could work for and I’m sorry that I have made things so tough for him. I understand that I can be fired from my job and prosecuted under the law for the actions I have taken in the past.

I have reread my statement and feel that I’m responsible for the loss of approximately $247,940 plus the $1200 from 1990.”

NOTE: The above is an excerpt from a full confession of a manager who stole $249,140 from his employer.

Date of manager’s confession: August 1993.

Do thieves share common traits? Let’s fast forward 15 years and compare the “could be anybody’s” manager’s confession to that of Bernard Madoff – American businessman and former chairman of the NASDAQ stock exchange charged with perpetrating what may be the largest investor fraud ever committed by a single person: $65,000,000,000.00 (That’s $65 Billion with a “B”)

I am actually grateful for this opportunity to publicly speak about my crimes…

(Source: Court Transcript)

THE COURT: Mr. Madoff, would you tell me what you did, please.

THE DEFENDANT: Yes, your Honor. Your Honor, for many years up until my arrest on December 11, 2008, I operated a Ponzi scheme through the investment advisory side of my business, Bernard L. Madoff Securities LLC, which was located here inManhattan, New York, at 885 Third Avenue. I am actually grateful for this opportunity to publicly speak about my crimes, for which I am so deeply sorry and ashamed. As I engaged in my fraud, I knew what I was doing wrong, indeed criminal. When I began the Ponzi scheme I believed it would end shortly and I would be able to extricate myself and my clients from the scheme. However, this proved difficult, and ultimately impossible, and as the years went by I realized that my arrest and this day would inevitably come. I am painfully aware that I have deeply hurt many, many people, including the members of my family, my closest friends, business associates, and the thousands of clients who gave me their money. I cannot adequately express how sorry I am for what I have done. I am here today to accept responsibility for my crimes by pleading guilty and, with this plea allocution, explain the means by which I carried out and concealed my fraud.

THE COURT: Thank you. Mr. Madoff, please stand.

When you did the things you told me you did in your statement, did you know that what you were doing was wrong and illegal?

THE DEFENDANT: Yes, I did, your Honor.

Click  here to read the manager’s confession in greater detail. NOTE : Scroll to bottom after browser window opens.

Excerpts from Store Manager’s Confession

• “I feel like a great weight has lifted from me now that I can talk about this…”
• “I have been waiting for this day to happen knowing that this could not go unnoticed”
• “I know how wrong I have been.”
• …to a company but to a very close personal friend.”

Note the similarities between their confessions…

Excerpts from Bernard Madoff’s Confession

• “I am actually grateful for this opportunity to publicly speak about my crimes”
• “I realized that my arrest and this day would inevitably come.”
• “I knew what I was doing wrong.”
• “I have deeply hurt many, many people, including the members of my family, my closest friends…”

Nearly every case (almost 4,000) handled by Corporate Combat® investigators had one thing in common. They all had a similar profile in what they said “after” being caught (like that above) and hindsight demonstrated that they also provided clues to their fraud behavior “before” they were caught. This is also true in the Madoff case and other “high profile” cases that have been occupying the headlines of late.

What are your thoughts on the “Madoffs” of the world and the everyday “manager” who oversees your store’s operations?

What are the similarities?

What are the differences?

Her confession led to a 5 month investigation of a pharmacist. Her clues, or Crookie Crumbs™, were instrumental in gaining valuable insight in not only how to proceed with the investigation, but how to formulate the interrogation process that would take place months later.

Review the confession and determine for yourself what we learned prior to confronting the pharmacist.

The pharmacist can be seen committing theft on this video. Note: This pharmacist was never told that he was captured on video. The video only served as a tool for the interrogator. A tool that he was trained (”The Art of Corporate Combat®”) not to use and for a good reason. Had he used the video evidence during the course of the interrogation, it might have severely compromised the outcome and minimized the chances of obtaining his handwritten confession. Do you know why it would have compromised the interrogation?

Amateurs (professionals, to a lesser degree) inadvertently TELEGRAPH their INTENT to steal through:

• NERVOUSNESS
• Moving the head to look to sides and behind (”scoping the area”)
• Seeking a refuge–an uncrowded place within the store.
• Face flushing uncontrollably.
• Circling the immediate area of the target item.
• Handling an item for a long period.
• Displaying cash (a ruse to convince others they will pay).
• Wearing used/old clothing that can be switched for new.

What must I remember before I confront someone for shoplifting?

‘‘Deliberate with caution, but act with decision and promptness.’’ – Charles Caleb Colton, c. 1780-1832 English cleric, sportsman, wine merchant

When surveillance reveals that someone is shoplifting, you begin the detention phase with your effort to confront and apprehend. The decision to confront a suspect must not be taken lightly.

Before you confront someone, remember six crucial questions about the surveillance you have undertaken thus far.

SIX QUESTIONS

1. Did I see the suspect APPROACH the display prior to taking the merchandise?
2. Can I IDENTIFY the merchandise?
3. Did I see the suspect REMOVE the merchandise from the display?
4. Did I see the suspect CONCEAL or alter the merchandise?
5. Did I maintain uninterrupted surveillance, or OBSERVATION, of the suspect?
6. Did the suspect LEAVE the store without paying for the merchandise? Am I certain the suspect did not DITCH the concealed item(s)?

Note that the first letters of the underlined words in questions 1 – 6 spell AIR-COLD. Use this acronym as a reminder of the requirements when dealing with a suspected shoplifter. Stop a suspect only if you have answered all six questions with a YES. These questions demonstrate probable cause, hence giving you a right to stop the suspect without being sued.

How should I handle the investigation of a shoplifter in order to avoid liability?

To avoid later liability charges, AN INVESTIGATION HAS TO BE REASONABLE in three respects:

1. The MANNER in which the suspect is treated.
2. The METHOD of gathering and receiving facts.
3. The TIME in which the investigation is completed.

During the investigation phase your company will:

• Allow the suspect an opportunity to EXPLAIN their actions and produce concealed items for examination relative to OWNERSHIP of the apparently stolen goods
• Ask the suspect questions such as, “Do you have a sales receipt?”

At the conclusion of the investigation phase, the merchant is privileged to hold the suspect for arrival of a police officer without mistreating him or her (e.g., no accusations, no excessive force, no forcing a search without suspect’s consent, no use of threats to prosecute in order to obtain confession).

How can I tell if our company is vulnerable to shoplifting?

• Do employees have clear visibility of easy-to-steal merchandise and of customer activity?
• Is their vision hindered by counter displays?
• Does the lighting adequately reveal what customers are doing?
• Are end displays low or shallow enough to reveal people behind them?
• Are your displays neatly arranged so that it is obvious when items are missing?
• Are tall displays against the wall so that there is no hiding place behind them?
• Are floors and shelves kept clean and orderly to indicate that these areas are tended to on a regular basis?

“I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who.” – Rudyard Kipling 1865-1936, English author and poet

WHEN YOU SUSPECT THEFT – DOCUMENTATION
Brainstorm by asking yourself “W” questions:
• WHO is the most likely suspect?
• WHAT are the likely methods of loss?
• WHERE are the losses occurring?
• WHEN are the losses being discovered?
• WHY is that employee so evasive?

What is one of the best ways to reduce your exposure to liability?

“If you didn’t write it down, it didn’t happen!” – Maxim in investigative professions

Document in DETAIL. Because anything may be important, your report should not leave anything out. You are documenting your MEMORY for total recall at a later date, possibly years later. The less you write, the less you will remember, and the greater your exposure to liability will be. BE FACTUAL, AND LEAVE OUT YOUR PERSONAL OPINION. Your reports should be written without bias or prejudice. Think of what you write as eventually being seen on the front page of a major newspaper.

Is it okay to edit a suspect’s words to provide clarity?

In your reports, record a suspect’s own words VERBATIM, whether these were originally written or verbal. Never edit what the suspect says. The language in your reports must be FACTUAL and NEUTRAL. A judge, a juror, an arbitrator, or other decision-maker may think that common peer jargon reveals BIASES.

What must I always keep in mind about the documentation that I create during my investigation?

Your documentation should be EASILY UNDERSTOOD BY A LAYPERSON. On the witness stand, the more you have to re-explain what you meant, the less credible you will appear. Also, never EDIT another person’s written report in an effort to make the document easier to understand.

Avoid using investigation JARGON in your reports. Jargon should be replaced with layperson’s terminology that conveys the same meaning.

What is a routine precautionary measure I should take with written evidence?

Keep all of your original notes as well as more formal reports by yourself and witnesses. Store that material in a place where access is limited to those who are actively involved in the investigation. As a precaution, make a DUPLICATE of all materials.

Advantages of the British Model 

• Before cameras are deployed, the public is consulted.
• Frequent town meetings
• Privacy concerns dealt with
• Citizens can visit control rooms at will
• Cameras are controlled by the police, local authorities and private contractors
• Clear policy and procedures that are approved by the Home Office

The American Model 

• Use of CCTV technology by law enforcement in the US has not always been well received
• Little involvement of the community prior to deployment
• Citizens left to respond after the technology is up
• There is a need for standardized policies dealing with:
  • Storage
  • Use of the images
  • Chain of command
  • Digital image issues
  • Use & reuse of tapes
  • Access to control rooms
  • Public access

LEGAL ISSUES

• Surveillance in the workplace
• Does the use of video surveillance by landowners and businesses to reduce crime  fulfill their “duty” to protect
• Invasion of privacy claims
• Failure to use a video security system (negligence)
• Failure to protect
• Improper discretionary use: targeting minorities, those belonging to unpopular political or social groups
• Use of video surveillance to replace security guards or officers
• Potential misuse of digital images since they are easily manipulated
  

Cases dealing with privacy 

• Katz v. United States – use of electronic interception of a voice in a public phone booth violates the expectation of privacy
• Kyllo v. United States – the use of thermal-imaging technology into a home violates the expectation of privacy because the technology cannot go beyond what the naked eye can see
• O’Connor v. Ortega – there is an expectation of privacy in  a private office at a hospital
• Vega-Rodriguez v. Puerto Rico Telephone Co. – there is no expectation of privacy in a common room used by numerous employees  

Negligence Cases 

• Nebel v. Avichal Enterprises, Inc. – if a criminal act is foreseeable and there was no attempt to reduce the risk, the defendant is liable (case involved a motel patron)
• Shoney’s, Inc. v. Hudson – a business in an area subject to crime is negligent if they use video surveillance to replace security personnel in order to save money
• Kutbi v. Thunderlion Enterprises, Inc. – use of video surveillance that is not monitored creates a false sense of security rendering the defendant liable

Considerations for invasion of privacy claims 

• The degree of the intrusion
• The context of that intrusion
• Circumstances surrounding the intrusion
• Intruder’s motives and objectives
• Setting where the intrusion takes place
• The expectations of those whose privacy is invaded
• Was there a breach of duty to protect

The incorrect and often illegal approach used 10 or 15 years ago is still the same incorrect and illegal approach used today. The business owner’s reaction to a theft or fraud situation has not changed much and that is because our basic emotional reactions to events are static. What has changed is technology, laws and tactics.

What is the future for CCTV use in the workplace? Will we see less of it due to changes in privacy laws?

Attitude:

“We are all alike, on the inside.” – Samuel L. Clemens (Mark Twain)

An attitude is a person’s position or bearing as indicating action, feeling or mood. It communicates a person’s thoughts, emotions, and intentions for the present, as well as for the future. These feelings and intentions SIGNAL a state of mind that are projected through BEHAVIOR, and energized by EMOTIONS.

Behavior:

“Behavior is a mirror in which every one displays his image.” – Johann Wolfgang von Goethe

Behavior acts as a WINDOW that allows you to inspect a person for their true intentions (You look through windows, not at them! What compels you to look at people and not through them is trust-blind trust.)

Behavior is made up of verbal and nonverbal actions that deliver the attitude to the world. The nonverbal actions reveal what the person does not desire to voluntarily tell you. And, behavior is governed by BELIEFS. Watch out for those who believe it is okay to commit a wrongdoing as long as “no one gets hurt.”

Character:

Character is revealed by what a person does; not what he says. Eventually real character peeps around the corner then boldly steps out. Bits and pieces of character slip out each at encounter. Character is like pieces of a puzzle that when put together give us a better and complete picture. For example, a suspect may not be dishonest toward you; but he may not hide the fact that he is dishonest to others! It’s as if dishonesty or deception doesn’t count if it’s aimed toward someone other than you.

PLEASE READ “RULES” which can be located by clicking on the ”RULES” tab found at the top of the page. Our goal is to have insightful, thought-provoking and professional discussions among Loss Prevention professionals and Business Owners. The discussions will cover a host of topics that pertain to loss prevention in the retail environment. These topics will include:

• Fraud
• Decision making
• Behavior Analysis
• Body Language
• Loss Prevention Policy
• Investigations
• Interviewing
• Interrogation
• Firing
• Hiring
• Shoplifting
• Courtroom Tactics
• Theme Development (advanced interrogation)

These are the primary topics. There will be subtopics that will naturally develop as discussions proceed into each of the primary topics. We invite your professional opinions, experience and suggestions.

Illustrators help interpret speech as it is spoken. Emphasis is given to a word or phrase, much like an accent mark or underlining. The speaker uses their hands or eye brow or upper eyelid movement to add emphasis. They sometimes use their upper torso and even their entire body. THE CLUE TO DECEIT COMES FROM NOTING A DECREASE IN THE NUMBER OF ILLUSTRATORS SHOWN, when a person illustrates less than usual.

People who show a lack of emotional investment in what is being said are likely being deceptive. People who feign concern or enthusiasm can be betrayed by the failure to accompany their speech with increased illustrators.

They also decrease when a person is having trouble deciding exactly what to say. This is especially noticeable when a person weighs each word carefully, considering what is said before it is said. They decrease when there is caution about speech.

Deceivers who are not rehearsed, who have had little practice in the particular lie, who failed to anticipate what would be asked or when, will show a decrease in illustrators. It is hard to deliberately place an illustrator exactly where it should be in relation to the words; they tend to come in too early or late or stay too long. It is like trying to ski by thinking about each action as you do it; the coordination is rough and it looks it.

Some qualities would include the following:

• Common sense
• Quick thinking and quick, but controlled, reactions
• Ability to interpret and evaluate body language
• Perceptiveness to potential violence
• Patience
• Tenacity despite possible intimidation
• Quick mental insight or discernment
• Maturity to rise above delight in others’ downfall
• Ability to examine shortcomings candidly
• Good memory
• Ability to avoid emotional entanglements
• Acting ability

An interviewer needs BUSINESS-RELATED EXPERIENCE:

• Apprehension of shoplifters
• Sales background (to sell self)
• Retail background
• A degree in business, law enforcement, or psychology
• Courses in behavioral science/psychology, criminal interrogation and applicable laws and regulations

An interviewer needs to be a GOOD COMMUNICATOR:

• Above average verbal and writing skills
• Above average listening
• Wide vocabulary plus correct word choice and word use
• Ability to communicate with people at any educational level, job rank, social status
• Attuned to different personality characteristics
• Quick mastery of information about jobs and associated jargon

I would like others to add to this list. From here, I would like to dig deeper into each quality.