2011 orc we have come a long way 2

ORC: We’ve Come A Long Way

Alan Greggo CPP, CFE

Director- Loss Prevention

Thirty-One Gifts LLC

Joe Davis CPP, CFI

Director-Field Loss

Prevention

T-Mobile

Rob Koperski

Sr. Investigator- AP

Wal-Mart

Organized Retail Crime is Theft/Fraud from retail stores by professional criminals known as (Boosters) with the intent of converting into financial gain.

Characteristics

Multiple subjects

Multiple locations

Theft and Financial Crimes

Involves more than just the removal from the store

According to the National Retail Federation

70 75 80 85 90 95

Victimized by ORC This Year?

% Of Victimized Businesses by ORC

2010

2009

2008

2007

2006

2005

According to the National Retail Federation

0

10

20

30

40

50

60

70

80

Increase in ORC activity?

Experienced an Increase in ORC Activity?

2005

2006

2007

2008

2009

2010

According to Congressional Testimony

and reporting by Industry Experts ORC

losses are up to $30 Billion Annually.

Not USA; States Lose $1.8 Billion A Year in Taxes From ORC

•Easy Data Entry and Historical Import

•Configurable User Dashboard Controls

•Advanced Data Searching to find the

information you are looking for

•Link Analysis Tools to help surface patterns

and trends

•Communication and Collaboration to help

you connect with other retailers and

investigators

LERPnet Alerts to warn of activity in your area of responsibility or increases in trends that might impact your business or the safety of your associates

LERPnet Notifications to let you know when there are updates or new reports related to your investigations

Online Training to support your rollout and ongoing use of the system

Dynamic Report Display including geo-spatial mapping and plotting

LERPnet2.0 has an easy navigation system, simple data entry

and a variety or reporting displays available to help you make

the most of the data…

Create New Events: access

“My Recent Events”

Report Suspicious Locations

and Found Merchandise

Reporting and Analytics

Alerts and Notifications

Online System Help and Training

C3- Collaboration Command Center

• With other retailers and LE on

Investigations

•Locate/Network with retailers and LE

contacts

CLEAR- Coalition of Law Enforcement

And Retail

The Coalition Against Organized Retail

Crime

International Anti-Counterfeiting

Coalition in Washington, DC

David George, CFI, LPCVice President of Asset Protection for Harris Teeter Supermarkets :

“Are Retailers Causing ORC?”

Each of us in the Loss Prevention profession has a responsibility to build an anti-ORC buying program by which our companies must abide. Only then can we win the battle against ORC. To do this, one must:Step 1: Meet with their executives and explain how buying stolen product creates the demand for more stolen product.

Step 2: Get a Commitment That Your Company Will NOT Purchase Stolen Product. (This may entail revamping incentive structure for buyers.)

Step 3: Communicate Expectations to suppliers (i.e., send vendors letters, establish procedures for violations, etc.).

Step 4: Create a "Right to Audit" clause in all supplier contracts that allow unannounced visits to supply warehouses.

Step 5: Audit for Compliance. (Inspect Lot Numbers after you receive product).

Just one of the

Gang!

December 8th 2010 – Beaumont, TX

At 09:00 hrs the Retail Sales

Manager for the T-Mobile

Beaumont, TX Parkdale Mall

kiosk discovers that the

storage room has been

burglarized. Approximately

$60k to $70k in phones are

stolen.

T-Mobile Regional Loss

Prevention Manager for south

Texas is advised of the

burglary. He determines that

the Zoombak GPS locator

device was taken in the

burglary and proceeding at 78

mph 700 miles west of

Beaumont on I-10 nearing El

Paso.

Tommie M – Investigation / Analysis / Indictment

Parkdale Mall – Beaumont, TX

Texas Rangers stationed

in El Paso are advised on

the progress of the

Zoombak in an as yet

unknown vehicle.

A black van is determined

to be the suspect vehicle

When the GPS data

indicates a precise

stopped location on I-10 in

El Paso, TX .

Three suspects are

arrested in possession of

180 T-Mobile phones from

the Beaumont store. The

suspects are Los

Angeles, CA residents.


El Paso, TX


Previous night : Arrested suspect / T-

Mobile Customer Tommie M’s MSISDN

is in the Parkdale Mall area at 18:20

hrs, pings tower A3H0057A located 0.4

mi from the store at 22:04 hrs and

remains in the area until 23:37 hrs.

At 23:37 hrs Tommie M. MSISDN

travels west on I-10 in pinging off

multiple towers until stopped by

Texas Rangers in El Paso.




February 11th 2010

Northridge Mall

Burglary

Tommie M’s phone seized

at the time of arrest was

stolen from the

Northridge, CA T-Mobile

store 10 months earlier on

February 11th 2010.

The MO for the Northridge CA

Burglary : Black male wearing T-

Mobile shirt empties out mall

kiosk of phones before or after

hours has been seen in other

burglaries.

This is Tommie M at

the Northridge T-Mobile

store at 09:54 hrs on

February 11th 2010 Northridge Fashion Ctr Mall –

Northridge, CA


Tower pulls from

burglaries with similar

MOs show Tommie M

outside the Greeley, CO

burglary on August 10th

2010,

The Las Vegas

burglary on June 30th

2010,

And the Olympia WA

burglary on March 5th

2010.


Tommie M’s call history

identifies an

associate, David R, whose

Cell tower activity, along

with Tommy M’s indicates

their collusion in burglaries

in

Escondido Mall –Escondido, CA


City of

Industry, CA

Puente Hills Mall – City of Industry, CA


Arcadia, CA

Santa Anita Mall –

Arcadia, CA


Burglary warrants have

been issued for Tommie

M for the Beaumont

, Texas and Northridge CA

burglaries.

Burglary warrants have

been issued/requested on

David R and Tommie M for

the Arcadia, City of Industry

and Escondido, CA

burglaries.

Federal prosecutors in

Texas are pursuing

Interstate Transportation of

Stolen Property charges

against Tommie M

ORT = ORGANIZED RETAIL CRIME

TWIR= THEFT WITH INTENT TO RESELL TTF=

TBIJ= THEFT BY INTERNET JURISDICTION BR-UPC=

FM = TDD =

SKIM =

T3E=

AOM= AFFIDAVIT OF MAIL

EE=

STATE ORC TWIR TBIJ FM SKIM T3E AOM EE PCA TTF BR/UPC TDD R&C FTL

Alabama X P X 500$

Alaska P 500$

Arizona X X X X X X 1,000$

Arkansas X X X X X X 500$

California P X P P 400$

Colorado X X X 500$

Connecticut X X P X 1,000$

Delaware P X X X X X 1,000$

Florida X X X X X X 300$

Georgia X X X X X 300$

Hawaii X 300$

Idaho X X X X X 1,000$

Illinois P P X X X X X X 150$

Indiana X X ANY

Iowa X X X X X X 1,000$

Kansas P X X X X X 1,000$

Kentucky X X X X 300$

Louisiana P X X X 300$

Maine X X 1,000$

Maryland X X 500$

Massachusetts 250$

Michigan X X 1,000$

Minnesota P X X 500$

Mississippi X X X X X X 500$

Missouri X X X X 500$

Montana X 1,000$

Nebraska X 500$

Nevada X X X X X 250$

New Hampshire X X X X X 500$

New Jersey X X P X P X X 250$

New Mexico X 250$

New York X 1,000$

North Carolina P X X P X X X 1,000$

North Dakota X X 500$

Ohio P X P X 500$

Oklahoma X X 500$

Oregon P X P X X 750$

Pennsylvania X X X 2,000$

Rhode Island X X X 500$

South Carolina X X 1,000$

South Dakota 500$

Tennessee X 500$

Texas P X P X X 1,500$

Utah X X X X 1,000$

Vermont X 100$

Virginia X X P X X X X 200$

Washington X X X X X X X X X X 750$

Washington DC 250$

West Virginia X X X X X 1,000$

Wisconsin P X X 2,500$

Wyoming X X 1,000$

FEDERAL P

BOGUS RECEIPTS & UPC LABELS

THEFT USING EMERGENCY EXITS

PCA =

P =

PATTERN OF CRIMINAL ACTIVITY

THIRD THEFT FELONY

THEFT DETECTION DEVICES

THEFT FROM 3 ESTABLISHMENTS

FLEA MARKET

SKIMMING

XP = ENHANCING EXISTING LAW

BILL IS PENDING OR PROPOSED

BILL HAS PASSEDX =

RECEIVING & CONCEALING

FELONY THEFT LEVEL

R&C =

FTL =

Maine- Act to Prohibit Organized Retail

Theft- defines the category of organized

retail crime, as two people working in

concert.

Stolen merchandise must equal $1,000 to

be considered a felony currently.

Ohio- Ohio's Organized Retail Theft Law, April 2009

The law makes clear that organized retail theft is a corrupt practice that can be prosecuted under Ohio's corrupt practices law

It defines the crime as theft of retail property valued at more than $500 with the intent to sell, deliver or transfer it to a fence for resale

The law also ensures that prosecutors can seek forfeiture of the criminal's property

H.R. 1173, the Organized Retail Crime Act of 2009

- defines ORC

- for the first time ever, makes ORC a federal crime

- establishes that the operation of auction sites could be considered "facilitation"

of ORC unless the operator shows specific steps had been taken to ensure

goods being sold were not fraudulently obtained or stolen

- require operators to adopt new tracking and reporting

- allows retailers to sue over the sale of stolen merchandise

H.R. 1166, the e-Fencing Enforcement Act of 2009- requires online auction operators to retain information about high-volume

sellers

- requires operators to provide the above information once a valid police

report is filed

S.470, the Combating Organized Retail Crime Act of 2009

- enhances sentencing guidelines for those engaged in ORC activities

- requires online marketplaces to retain certain information about high-volume sellers

- requires physical and online marketplace operators to review the accounts of sellers engaged

in possible criminal activity and file suspicious activity reports with the Attorney General

- requires physical and online marketplace operators to suspend the activities of sellers when

there is clear and convincing evidence that they are selling illegally-obtained goods

H.R. 4011, the "Organized Retail Crime Prevention and Enforcement Act of 2009

- amends existing federal offenses of transportation and sale of stolen goods to encompass

offenses linked to organized retail crime, subject to a lower offense threshold than in

current law

- establishes task forces in six federal districts to combat organized retail crime, and authorize

appropriations for them

- the legislation would not impose any new duties on online marketplaces or auction sites

In November 2010, H.R. 5932, the Organized Retail

Theft Investigation and Prosecution Act of 2010

, passed in the House of Representatives

This bill would have protected both retailers and

consumers against the massive economic costs

and risk to public health and safety

The new Congressional session started in January

2011 and NRF is working with members of Congress

to explore similar legislation this year

Questions?

Alan Greggo

Thirty-One Gifts LLC

[email protected]

(614) 414-4667

Joe Davis

[email protected]

(425) 233-0628

Rob Koperski

[email protected]

(479) 657-8822

mailto:[email protected]







2011 orc we have come a long way 2

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