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Back at work

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Thursday, August 7, 2008

I've been on vacation since last Friday and as much as I meant to keep up with my blogging, I just couldn't. It was time for a well deserved mini-break from blogging. (Hope my boss doesn't read this.)

Anyway, there has been a lot happening, especially in the retail market. Here's the run down.

*A bill last week was introduced by Congressman Bobby Scott that addresses e-fencing. HR 6713, the E-Fencing Enforcement Act of 2008, would impose "reasonable duties on online marketplaces to collect information that law enforcement can in turn use to prosecute those that fence goods on their websites." Further, the bill requires online marketplaces to halt the sale of goods on their sites if they are known to be stolen.

*The Combating Organized Retail Crime Act of 2008, also introduced last week, would address this issue by amending federal law to give law enforcement the legal clarity to prosecute organized retail crime. The bill would also place basic disclosure requirements on online marketplaces. Finally, the legislation requires both online marketplaces and traditional fencing locations, such as flea markets and pawn shops cooperate with retailers and law enforcement to ensure stolen goods are identified and removed. The bill was introduced by Senator Richard Durbin (D-IL).

According to a press release from the Retail Industry Leaders Association, the varying patchwork of state laws has given ORC criminals the ability to operate largely without risk. Because of the lack of a federal law, ORC gangs that move from store to store stealing thousands of dollars of merchandise are often only subject to minor misdemeanor charges.

*Dedicated Micros Inc. announced last week that its president and CEO, Dr. Alan E. Calegari, on July 1 transitioned to a new role as non-executive Chairman, providing strategic support to the executive team.

Mark Provinsal assumes the role of executive VP and leader of the DM's executive team in addition to his role as VP Strategic Marketing and Product Strategy. Mark will be the leader over there, of more officially the "point of contact for all executive matters until such time as a new president and CEO is appointed."

I really enjoyed getting to know Alan over the past few years during his time at DM and Siemens. I'm not sure where he is headed or how long he will stay as non-executive Chairman. I do know that Mark is great and obviously very capable of handling multiple jobs. Hope he is being seriously looked at as a contender for the president and CEO position.

*Andrews International, a provider of security and risk mitigation services, acquired Seventrees Corporation, a uniformed security, personal protection, special event security and training services company, based in Benton Harbor, Mich. According to a press release, Andrews International is continuing its growth strategy of organic business development, alliance building and acquisition to become "one of the fastest growing security and risk mitigation services in the country." (Wonder who that is accurately measured?)

*Jeff Floreno, former global security and compliance manager for Georgia Pacific, joined Wren as director of security operations and strategy. In this new position at Wren, Floreno will be responsible for directing product development strategies, leading Wren’s efforts to more closely integrate video and access control, and developing overall security strategies for education, government and retail markets.

Floreno’s career includes top-level security management positions with Northrop Grumman, 3M and Georgia Pacific. At Georgia Pacific, Floreno championed a loss prevention program designed to address vulnerabilities in Georgia Pacific’s $2.5-billion timber procurement supply chain. At 3M, Floreno worked with internationally renowned forensic psychiatrics to develop a workplace violence program that continues to be used on a national basis. At Northrop Grumann, Floreno was responsible for the development,implementation and management of security programs. Ultimately, he was cleared at the Top Secret Level with a special background investigation and given multiple Department of Defense and User Agency Accesses, DOE Clearance, and Intelligence Agency Access, a testament to the sensitivity of his position and responsibilities. During his last two years, Floreno was appointed Contractor Security Manager for the B-2 Bomber Program.

Floreno served as founding treasurer of the Atlanta Chapter of Association of Threat Assessment Professionals.

As I go through my e-mail, I'm sure I'll have more to share with you but this gives you something to chew on for now.

Moments I'm glad I don't work for the mainstream press

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Thursday, July 31, 2008

This could also be titled "crime of the week" because it is so crazy but it also makes me very happy that I do not work for a local newspaper.
This paper must have been hurting for content because it uses 621 words to tell a story that could have been summed up in a 50-word brief.

You've heard the advice: Never run with scissors.
Here's some more advice: Don't run in flip-flops — especially when the cops are after you.
And especially when the flip-flops help police find you.
This is the story of a vacationing shoplifting suspect, his young companion and the flip-flops on their feet that, according to a report, actually helped police track down a barefoot man who tried to hide in a clothing store Tuesday afternoon.

She used the phrase "This is the story"? Are you kidding me?

Tommy Lee Patterson, 41, his wife and daughter, and Donald Gravley, 47, and his wife, and three teenage friends traveling with the two families were vacationing in the area from northern Georgia, police said.
About noon, as they were getting ready to head home, the vacationers decided to stop at the Wal-Mart on west Granada Boulevard and do a little shoplifting, police said.
Selecting everything from $33 worth of beef jerky to a variety of NASCAR T-shirts, beer and toilet paper, Patterson and Gravley and four teens strolled through the massive store filling their shopping cart, police said.

Ok, who would grab a VARIETY of NASCAR t-shirts and doesn't think the LP guys are watching them?

The group was being watched by a security officer who followed as they left the store with the brimming shopping cart. (Duh)

When asked whether they had a receipt for the $288.98 worth of goods, Patterson, Gravley and the teens scattered.
According to the report, though, Patterson decided to grab one of the teen girls who was with the group, and forced her to run with him as he eluded police.
This is where the shoes come in — both Patterson and the 14-year-old girl he grabbed wore flip-flops, Hayes said,
The chase was on.
Two Wal-Mart customers joined the pursuit when they found out Patterson had tried to steal from the store, police said.
The two good Samaritans, as police called them, were cousins Angel and Brian Graham of Ormond Beach.
The Grahams' footwear? Flip-flops.

Wow. That's like four people wearing flip-flops in the middle of summer. That's frickin' amazing.

Patterson and his young friend ran across Granada Boulevard — flip-flops still on their feet — and to the Lowe's home improvement store, the Graham cousins in tow, the report states.
At some point, Patterson and his young friend, and the Graham cousins, "ran out of their flip-flops."
When the flip-flops flew, the shoes landed in a pattern that left a trail of sorts.
"The officer who was chasing them apparently spotted a pair of flip-flops on the ground, then as he kept going, he spotted another pair of flip-flops," Hayes said. "You could say the shoes are what led the officers to the suspects."

Hey, that was the simplest investigation ever. Good job by the cops — superbad job by this reporter. This is such a non-story. And again, 621 words. To compare, the stories in Security Director News usually run about 500 words.

Patterson remained at the Volusia County Branch Jail on $4,500 bail Wednesday night. Gravley, meanwhile, was arrested on an outstanding warrant from Georgia. He remained at the jail without bail.
As for the flip-flops, it's not clear what happened to them.

This may be the worst story I have ever read. And it was on the paper's front page.

How much is AlliedBarton worth?

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Wednesday, July 30, 2008

When we sent the newswire out yesterday, no financial details on the AlliedBarton-Blackstone deal were available. But details leaked out yesterday in a Securities and Exchange Commission filing. The bottom line: Blackstone will pay between $700 million and $750 million for the guard services firm.

Here's Reuter's take on it.

And here's Sam's.

More consolidation

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Tuesday, July 29, 2008

Other than knowing what month we are in, I can always tell by the news cycle when ASIS is right around the corner. Acquisitions start happening like crazy — HSM purchased Sonitrol and National Guardian's retail accounts business; Blackstone snapped up AlliedBarton and yesterday the news came through that Siemens acquired MAC Systems.

From the press release:

“MAC Systems is one of New England’s leading security systems integrators,” said George West, vice president and head of Siemens Building Technologies Security Solutions Business Unit. “Our customers throughout New England will benefit from the combined resources and experience of our two companies. “

The acquisition, which strengthens Siemens ability to serve current and prospective customers in the region, will integrate MAC Systems operations and its approximately 60 employees with its network of branch offices located throughout the New England states. In the near term, plans call for MAC Systems to operate from its current location as a branch office of Siemens Building Technologies.

With more than 4,000 separate systems installed and nearly 20,000 card readers managing facility access, MAC Systems customer base represents some of the most prominent organizations, businesses and institutions in New England.

(Jeez ... I didn't realize New England had that many people, forget about card readers. But then again, I am a bit isolated out here in Maine.)

“Our new status ensures that our customers will continue to have access to the highest levels of service, technology and integration experience,” said Robert McMenimon, founder of MAC Systems. “We are truly excited to be a part of Siemens. It is a great fit – we are now a part of one of the most trusted names in the security industry and I am confident our employees will thrive in an organization that, like MAC Systems, is driven to develop and implement innovative solutions that confront the most urgent challenges of security.”

Sam and I are talking to George West (one of my favorite security executives) this afternoon. I really don't know MAC too well — other than their marketing guy who I just remembered I still owe a copy of his submission from the systems integration source book. (Sorry, Tom.)

Blackstone buys Allied

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Friday, July 25, 2008

Private equity fund The Blackstone Group will acquire AlliedBarton Security Services, the companies announced today.

Bill Whitmore, chairman, president and CEO of Allied, said the transaction is "a tremendous opportunity to fuel our continued growth."

Blackstone's Senior Managing Director Chinh Chu said the firm was attracted to Allied's "leading market position and the strong fundamentals of the sector. We look forward to working with AlliedBarton's outstanding management team to help them pursue their exciting growth strategy both organically and via acquisitions."

Blackstone is a pretty big group and although I seem to remember hearing the firm was interested in the security space, I believe this is their first purchase in the industry. They have some serious deals behind them — Sirius Satellite Radio, Adelphia and even Orangina. Obviously, its a pretty diverse portfolio.

The Allied transaction is expected to close in August, subject to government approvals. I'll have more on the deal in next week's newswire.

Crime of the week

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Thursday, July 24, 2008

As many of you who read my editorials know, I do have a criminal history — once I took lip gloss from a a now mostly-defunct discount store (HINT: It was to get back at them for firing me) and a few months back, I didn't pay for a bag of nuts at an organic grocery store (but that was the cashier's fault.) But I have to say my past crimes are very small compared to some I see come through on the news each week. With that in mind, I am starting a new feature on this blog. Each week, I'll feature a "Crime of the Week." How sweet is that?

So let's get the party started. This one struck me not because of the amount of the stolen goods, but because these women used a creative ploy in their crime.


Moms uses kids in shoplifting scheme
CLAY COUNTY, Fla.—Two women accused of using their children as decoys in a shoplifting scheme were arrested at a Clay County department store on Tuesday.
Investigators arrested Melissa Blankenship, 22, and Alicia Metcalf, 30, outside the Kohl's store in Fleming Island when one of the store's loss prevention officers stopped the pair.
According to a police report, a loss prevention officer told deputies the women were seen in the store taking clothing from hangers and placing the garments underneath their children, who were sitting in shopping carts.

(So glad my parents never used me as a decoy. Thanks Mom and Dad!)

"A couple of moms started getting creative and they used their children actually to be able to store and hide the merchandise," said Clay County Sheriff's Office Lt. Donnie Deas.
A loss prevention officer told authorities he saw Blankenship and Metcalf leave the store and approached the women in the parking lot.
"They started arguing in the parking lot until finally the loss prevention officer was able to quell the argument and talk to them and bring them into custody for further questioning," Deas said.
He said after further questioning, officers found more stolen items in a diaper bag left in the car by Blankenship. In total, $687 in merchandise was stolen from the store.
Deputies said both women changed their stories several times before admitting to taking the garments, according to a police report.

(I can hear it now. "I didn't know my two-year-old son was a shoplifter! I am shocked!)

Deas said what the women will face in a court of law is nothing compared to the court of public and family opinion.
Blankenship and Metcalf were arrested and taken to the Clay County Jail, where Metcalf — a registered convicted felon — is being held on $5,000, and Blankenship is being held on $750 bond.

(Why anyone can have kids is beyond me. There should be a mandatory test in place.)

So there you have it, our first "Crime of the Week." If any of you have crazy stories to tell, suggestions welcome.

Parallel to convergence

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Wednesday, July 23, 2008

As video and other physical security technologies continue the process of moving onto the IT network, another slow migration to "new" technology has begun as well.

Companies related to our industry that didn't used to care about the value and techniques behind optimizing their Web properties are becoming interested in SEO — Casino Managers can read all about it in an upcoming issue of Casino Enterprise Management. Blogs like this one are multiplying, and besides the social aspects, blogs have the power to contribute heavily to Web rankings.

The online ad rates at some business-to-business sites within the physical security sector — despite a relatively small niche readership —are commanding astoundingly high prices for online display ads — even after the dickering. This may change as advertisers get more savvy about comparative pricing and as publications are better able to value and sell their different advertising products. But the too-expensive online ads are selling and that says a lot about perceived value.

Attempts at forming independent online communities, until now fragmented, frustrating and fruitless, are actually taking hold:

  • CCTV Blog, with 97 members, has the potential to become something interesting. (JOIN and help it happen!)
  • IP Video Market Info, a site that constantly tracks and organizes new video surveillance information from company websites and across the web, reported an amazing 10,000 monthly visitors after just 4 months online. (Comment on John's excellent posts!)

- - - - - -

Contributed by Abigail Hamilton, director of marketing for Airship Industries, a developer of high-value digital video surveillance solutions that are flexible, scalable, and affordable.

More organized crime

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Tuesday, July 22, 2008

And this time it is not retail. I saw this story this morning and it really baffles me. How does $44 million of product disappear into thin air?
A truck loaded with $44 million worth of expensive cancer-fighting medication was stolen Wednesday, July 16, in what appears to be the latest instance a growing trend of highly organized truck and trailer thefts, Land Line magazine (the business magazine for professional truckers) reported yesterday.
The truck was stolen from a TA (brand or kind of stop? I'm not quite sure) truck stop parking lot in Jeffersonville, Ohio, while its drivers were inside for about seven minutes.

Ok, if there is a TEAM of drivers, why were they all inside the stop together? If I was in charge of transporting $44 MILLION worth of pharmaceuticals I most certainly would not leave that darn truck alone for five seconds.

The thieves disabled the truck’s GPS before quickly swapping out a tractor and trailer, which is consistent with how some Miami-based gangs operate, said Chuck Forsaith, corporate director for supply chain security at Coventry, Rhode Island-based Purdue Pharma Technologies Inc.

The gang actually had time to swap out the trailer to a new truck? And disabled the GPS? Wouldn't that take a bit more than seven minutes? Maybe they are highly efficient, just like ORC gangs? I can't even write a story in seven minutes, let along move around heavy machinery. Maybe it's time to take a closer look at my productivity.

The trailer of cancer-fighting prescription drugs had an estimated retail value of $44 million.

Again, $44 million. Why would you leave that unattended again?

I'm only the messenger

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Thursday, July 17, 2008

I know this blog has been chock full of retail/LP/counterfeit news for a few weeks now. And I'm sorry, but today is going to be no different.

First off, legislation that would make organized retail crime a federal offense was introduced earlier this week. Retailers and industry watchers hope a federal rule will be a stop the problem, which is estimated to cost upwards of $30 billion per year.

H.R. 6491, the Organized Retail Crime Act of 2008 was introduced Tuesday by Representative Brad Ellsworth, D-Ind., with Representative Jim Jordan, R-Ohio, as the lead co-sponsor.

The bill would define organized retail crime as “the acquiring of retail merchandise by illegal means for the purpose of reselling the items” and make such activity – including transportation, sale or receipt of stolen retail goods, – a federal crime. Among other provisions, sale of stolen or counterfeit gift cards, or items with faked Universal Product Codes or Radio Frequency Identification chips would be considered fraud. Those found guilty of committing or facilitating organized retail crimes would be subject to appropriate existing fines, prison terms and forfeiture, and the legislation would require the U.S. Sentencing Commission to review its guidelines for cases involving such crimes.

The bill would also establish that operation of on-line marketplaces such as auction sites can be considered “facilitation” of organized retail crime unless the operator can show that specific steps had been taken to ensure that goods being sold were not obtained by theft or fraud. Site operators would be required to “expeditiously” investigate complaints that stolen items are being sold, maintain records of the names and physical addresses of high-volume sellers, and require high-volume sellers to either post that information along with merchandise offerings or make it available upon request to any business with a reasonable suspicion about the merchandise. Operators of on-line marketplaces could also be sued by any business whose stolen goods were sold.

And, Tyco yesterday announced the acquisition of the assets of IntelliVid, a developer of retail-focused (sorry, sorry!) intelligent video analysis solutions to add to its American Dynamics portfolio of video security technologies. Since 2003, privately-held IntelliVid has provided its retail customers with business intelligence applications that utilize video analytics for loss prevention, customer safety, compliance, and merchandising.

The acquired assets include IntelliVid’s complete line of Video Investigator solutions, Point of Sale Accelerators and Computer Aided Tracking software. The new solutions will leverage American Dynamics VideoEdge technologies, Tyco said, allowing recorded video to be used for real-time and forensic theft prevention and store intelligence solutions.

I'm talking to Chuck Hutzler, vice president of R&D for American Dynamics solutions, about the deal today and will have more informaiton for you in Tuesday's newswire.

Tiffany's at a loss

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Monday, July 14, 2008

The Associated Press is reporting that eBay just nabbed an important victory in court.

A judge said Monday that companies such as jeweler Tiffany & Co. are responsible for policing their trademarks online, not auction platforms like eBay. Tiffany had sued eBay over the sale of counterfeit jewelry on eBay's sites.

Judge Richard J. Sullivan in New York said in a Monday ruling that eBay can't be held liable for trademark infringement "based solely on their generalized knowledge that trademark infringement might be occurring on their Web sites."

I have to say I don't agree with this at all. Ebay is making money off sales of counterfeit and stolen goods. They should be held responsible for criminals using their site to sell these items. Period.

What do you think about this ruling? Fair or BS?

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