3 Most Common Types of Corporate Crisis

What is a corporate crisis? While exact definitions may differ, a corporate crisis is generally defined as “an event, situation, or public initiative that threatens the company’s ability to effectively operate its business. A crisis can escalate into a disaster or long-term impediment to business growth if not handled with efficiency and sensitivity to all involved.” This is a large umbrella that encompasses many of the internal issues we associate with companies, including (but not limited to) fraud, theft, misconduct, and harassment of all kinds.

A majority of corporate crises fall into one of three categories: personnel, systemic, and contextual.

  1. A personnel crisis is an internal issue that is a direct result of an individual employee or a group of employees’ bad behavior. Theft by personnel is one of the most widely-reported crises in corporations throughout America. The scope of this problem can be as small as stealing office supplies all the way up to executive embezzlement. Sexual harassment is a type of personnel crisis receiving a welcomed new level of attention in corporations. In the age of the #MeToo movement, corporations are viewing their workforce very differently when it comes to identifying potential predators in their midst in the name of a “pound of cure.” Prudent steps taken when vetting potential hires and current employees has saved companies difficulties down the line, especially in legal fees and public relations.
  2. A systemic crisis refers to a major breakdown in operations negatively impacting business. A common example is food service corporations that receive a sudden influx of food poisoning complaints. Source of the outbreak may be traced back to how the supplier or distributor handled the food product, and suddenly, there’s a systemic crisis: A misstep in operations led to a large sum of incidents. Systemic problems manifest themselves in many forms, including external theft. Repeated theft, both in cyberspace and the real world, is often the result of insufficient security within a company. Consequently, the company incurs loss because they remain vulnerable. Companies who have chronic turnover due to employee misconduct may have flaws in their vetting system for potential employees. That is another example of a crucial operation where a breakdown occurs and erodes a company’s profits with labor hours to hire a new individual to fill a vacant position.
  3. A contextual crisis has exponential consequences for a business relative to its size. These are the types of crises that companies cannot anticipate, because they influence public perception of their brand based on real-life events. A major news story like a mass shooting, or a major criminal case, or a lawsuit, can negatively impact a brand even if that event is not directly associated with that company. These external events can drastically change a company’s internal operations, and can weigh heavy on employees at every level. Sexual harassment is another example of this type of crisis in motion. The media coverage regarding high-level Hollywood executives like Harvey Weinstein and his alleged history of abuse have executives in companies of all shapes and sizes revisiting their human resource policies and practices when it comes to addressing sexual misconduct in the workplace. Internal operations receive a major overhaul to the benefit of a healthier work environment for everyone.

When it comes to corporate crises, not all businesses will be able to afford specialized investigators to work in-house to resolve issues that arise. Even if they can afford these professionals, investigators employed by the company—regardless of the quality of their work—by definition cannot provide a truly objective solution to any problem. Because they’re employed by the corporation, they have a potential stake in the outcome of the investigation, whether that stake be real or perceived. Hiring an independent professional, like a licensed private investigator, to conduct an external investigation is the best way to ensure that the solution is objective. This is particularly important personnel crises, because terminating personnel based on an unbiased investigation is kerosene for a disgruntled employee that can manifest itself with many devastating consequences—most commonly wrongful termination lawsuits. Private investigators can assist in systemic crises as well, like the example of repeated thefts with regards to security. Private investigators who specialize in different kinds of risk assessment can identify a company’s vulnerabilities to thieves and scammers, and provide them with a game plan to improve their security.

If your business has encountered a corporate crisis, call Lauth Investigations International today for a free consultation. Learn how we can provide you with an objective solution to your corporate crisis. Call 317-951-1100, or learn more about our services here.

Don’t Wait to Hire a Private Investigator

Don’t Wait to Hire a Private Investigator

lauth investigations Every business—from the mom-and-pop shop to corporate America—will encounter some form of crisis during their operation. Crises come in all shapes and sizes, including employee malingering, internal theft, brand protection, and a myriad of lawsuits that could bring an established business to its knees. When disaster strikes, it is the reflex of most companies to handle the matter internally, often delaying important investigative measures out of uncertainty, ignorance on how to proceed, or both. While an internal investigation allows a company to control available information and minimize any consequences, an independent external investigation conducted by a private investigator is the best course when it comes to finding a comprehensive solution to any corporate crisis. The important thing to remember is you cannot wait when a crisis arises, and hiring a private investigator should be one of the first items on your to-do list.

Independent private investigatiors provide the best solutions from the onset of the investigation. Investigators too often run into roadblocks during investigations because they are working from a narrative and timeline that has already been established by an internal party. When you have a qualified and objective investigator handling the investigation from the beginning, it lays a solid foundation that will lead to credible leads, proper gathering of evidence, and quality conversations with potential witnesses.

During a fact-finding process, internal investigators may not have considered all angles and left many leads unexplored. Potential witnesses within the workforce need to be interviewed and their statements recorded, but an internal investigator—usually a Human Resources representative or upper management employee—may not have the qualifications. Any witness testimony may be tainted because the investigator is not properly trained in interview and rapport. Witness statements could also be false or inconsistent because they fear reprisal from an internal investigator who may have clout when it comes to the employee’s future at that business. When a private investigator is retained weeks after the onset of the investigation, witness’s memories may be inaccurate or even non-existent. In some cases, an employee may have already left the company, or changed addresses. This results in more investigative measures required to locate that employee, which costs money and labor hours to the investigator.

Witness statements are valuable, but not so much as hard evidence that cannot be interpreted for a particular spin. One common example is surveillance footage. An internal investigator may think to pull surveillance footage from a single camera near the site of the incident or crisis, but the investigator may not pull surveillance footage from other cameras that could contain valuable information. Most companies invest in security systems that recycles surveillance tape after a short period of time, sometimes as little as five days. Once an independent private investigator is retained, valuable footage is gone, and other fact-finding measures will be necessary—again, more time and money at the cost to the company.

It is possible for an internal investigation to play out smoothly—at least at first glance. Even if the internal investigator is well-qualified to conduct the investigation, there will always be the question of objectivity when dealing with an internal investigation. A successful investigation that concludes with the termination of an employee who was found to be at fault for the crisis or incident has the potential to result in legal action. In this example, it would be a wrongful-termination suit. When argued in a court of law, it’s easy for the terminated employee to cast doubt on their former employer by citing the investigation into their wrongdoing was conducted by an internal employee with a direct stake in the outcome. When a private investigator handles the investigation from beginning to end, there will never be a question of objectivity, because a private investigator’s task is to find the truth—not manufacture a solution that will mollify their client.

When your company encounters a crisis, do not hesitate to retain a private investigator to find a solution. The time and resources spent on an internal investigation may all be in vain when the chips are down. To protect your business and its profits, take immediate action when a corporate crisis arrives by retaining a private investigator that will provide you with the expertise and objectivity for a successful solution.

If your business has encountered a corporate crisis, call Lauth Investigations International today for a free consultation. Call 317-951-1100 or find us online at www.lauthinveststg.wpengine.com

Investigating Non-Compete Violations

Investigating Non-Compete Violations

non-compete violationWhen growing a business, executives and owners have to go the extra mile when it comes to protecting trade secrets. In the pursuit of their company’s business, a common practice for corporations of all sizes is implementing non-compete clauses in their employees’ contracts. This ensures, should an employee leave the company for any reason, they cannot utilize trade secrets for the purpose of building a similar business of their own. It’s in a business owner’s best interest to be preemptive in protecting themselves from client poaching, theft of company secrets, and possibly even slander when it comes to current and former employees who violate their non-compete agreements.

Though they go by several names and the laws concerning them vary state to state, non-compete agreements are generally a legally-binding contract between an employer and an employee, whereupon acceptance of a job offer by a company, an individual agrees during their employment and following their termination they will not enter into any competing business for a predetermined period of time. Whether it’s working for a company’s top competitor, or striking out in their own business, non-compete agreements protect trade secrets, sensitive company information, and prevent competing businesses from poaching successful employees with promises of a handsome pay-raise in exchange for the expertise they might have gleaned from their time at their previous position. This kind of information can range from client bases to business operations to future products and services. The duration of the non-compete agreement following an employee’s termination have to be well within reason, as no employer can permanently preclude a former employee from any line of work.

Not every company experiences difficulties by virtue of a former employee violating their non-compete agreement, and some companies do not see the need for non-compete agreements at all, but the consequences of trade secrets being used to steal a company’s business can have devastating effects, ending in the worst possible circumstances with a business closing and an owner in debt. Even if a company is able to quash a non-compete violation in court, the cost to the company in legal fees can be astronomical, especially for smaller businesses. That’s why it’s important for owners and executives to be preemptive and proactive when it comes to potential violators. Luckily, a private investigator can help at all stages of a non-compete violation investigation.

Human resource employees are the salt of the earth, and can have a great influence on how a company develops based on the individuals they select for their workforce. However, human resource employees are not lie detectors, and do not always have access to legitimate, comprehensive background screening tools. Background screenings and checks are among the most common service associated with private investigators. If there is something suspect in a candidate’s past, licensed private investigators have the tools and experience to find it out. Private investigators can pull a candidate’s criminal history, financial history, and interview persons in their lives who can speak to character and work ethic. They can also spot patterns in a person’s work history or lifestyle that could be high-risk factors in a hypothetical non-compete violation—things like transience, long periods between positions, or financial destitution.

Some malingering employees can’t wait to be terminated before violating their non-compete agreements. It’s not uncommon for these individuals to exploit trade secrets for their businesses own gain while on company time and dime. While on a business trip, an individual might use company per diem to buy drinks for a person who could be a potential investor in their new business. Employees might use company supplies to supplement their project, such as printers, fax machines, computers, and other equipment. Private investigators can conduct diligent investigations within a company’s workforce to root out the source of the theft. Private investigators can interview witnesses, including upper management and other staff, review vital documents like bank records, and conduct surveillance of the company’s operations as needed to expose the perpetrator. Their objectivity makes them an ideal candidate to conduct such an investigation because they do not have a stake in the outcome.

There are many circumstances under which a business owner might come to suspect a former employee has violated their non-compete agreement. Word might have traveled through business circles that a similar business is starting up. Employees might start disappearing in clusters. Clients may suddenly decide to sever business ties in favor of a new contender in the competition. Whatever transpires, one thing is certain—documenting and exposing this exploitation is imperative, because the consequences can be costly. Retaining a qualified private investigator who specializes in corporate crises is crucial to resolving non-compete violations quickly, before the exponential costs begin to erode profits. Private investigators can perform surveillance on suspected former employees to document their movements, record with whom they met, and collect evidence such as pictures of a brick and mortar establishment, marketing materials, vital documents, and filings with the Secretary of State. Private investigators can send undercover operatives to infiltrate a workforce to get information the business privy only to employees. They can also enlist the aid of a confidential informant—an individual already within the company to provide information. This requires quality interviewing skills and developing a natural rapport with potential witnesses, both important qualities in a qualified investigator.

When non-compete violations are at their ugliest, not only do violators seek to siphon off their former employer’s business by exploiting trade secrets and knowledge of their operations, but they can also play dirty by exposing this information publicly. Another method involves deliberately spreading lies about the competition in order to drive business towards the former employee’s company. That’s known as slander and it’s legally actionable. Documenting the perpetuation of these lies and proving they are in fact false are crucial in these cases. Diligent fact-finding is the cornerstone of any private investigator’s expertise. Private investigators can conduct cyber investigations to track down the users behind profiles that post false negative reviews, follow rumors back to their roots, and forensically track how information left the competition and made its way into the former employee’s business nucleus. They can implement many of the strategies aforementioned: surveillance, interviewing witnesses, documenting evidence. Slander cases tend to have a divisive they-said, they-said narrative, which is where a private investigator’s objectivity becomes invaluable once more. Private investigators have no stake in the solution of an investigation. Their independence coupled with their expertise and resume make them spectacular witnesses in any subsequent litigation.

When a company has a non-compete agreement in place, it’s important that executives and owners are proactive when performing a risk assessment on a potential employee. It’s important that a healthy company culture fosters good comradery, honesty, and a policy of “if you see something, say something.” Building a case against a former employee who violated their agreement can be time consuming at the expense of company resources. Dealing with the fallout from litigation can bring a reliable business to its knees. Private investigators can assist in all phases of any non-compete agreement violation, and retaining their services will go a long way towards a body of objective evidence and testimony that can resolve a company’s crisis.

If you have suspicions that a current or former employee has violated their non-compete agreement, contact Lauth Investigations International today for a free consultation on how we can help you! Call 317-955-1100 or find us online at www.lauthinveststg.wpengine.com. 

Carie McMichael is the Media and Communication Specialist for Lauth Investigations International. She regularly writes on investigations, missing person, and other topics in the criminal justice system. 

The Importance of Fact-Finding

The Importance of Fact-Finding

fact-findingEven if you’re not a fan of Fox’s successful prime time drama, Empire, you’re likely aware of the name Jussie Smollett by now. Smollett has come under fire in the media and on the internet for his allegedly false account of a racially-motivated attack against him in January, where he alleged two men attempted to strangle him and pour bleach on him. When the story first broke, it was shaping up to be a watershed moment in conversations about how the current administration is affecting race-relations throughout the country. After law enforcement conducted an investigation into his version of events, they’ve released statements that Smollett may have hired the men responsible to help him stage the attack. The case has created divisive new conversations about the United States’ current political climate, but is also prompting career investigators to highlight the importance of thorough and diligent fact-finding in the early stages of any investigation—especially within corporations.

Conducting an investigation with unimpeachable integrity is very similar to building a structure ready to withstand natural disasters. Laying a firm groundwork from the moment of the intake narrative will set an impregnable foundation allowing investigators and support staff to develop strong leads. Investigators must be prepared to ask every question—albeit inane or delicate—in order to ensure they are getting all of the existing, relevant information on the case. This is a process called fact-finding, in which a victim or witness’s statement is documented and entered into record, thereby allowing investigators to thoroughly vet every aspect of their statement. Were they in fact present when the incident took place? Can they accurately describe the alleged perpetrator? Is their story consistent across multiple iterations?

As is the case with any investigation, operatives are racing against the clock. With time, witnesses’ memories fade and witnesses themselves disappear, having relocated or simply left town. As time goes by, evidence is eroded, eventually disappearing, eliminating the leads they might have developed. This is why thorough fact-finding is so important, because investigators who are operating off false or inaccurate leads can lose days or weeks on a case as they chase a lead that will eventually come to no end. While investigators chase those dead leads, the truth about what actually occurred dissolves into obscurity.

Investigators in the Smollett case were able to vet his account of events and discover there may be more to the story than meets the eye. The case was not an isolated incident of allegedly false accusations having major consequences for the parties involved. Regardless of why an individual would make false accusations—whether it was with malice or simply a mistake—these circumstances could occur in many areas of life that could be devastating to both individuals and corporations.

Allegations of misconduct in the workplace immediately come to mind. Whether it’s allegations of theft or sexual harassment, these are the kinds of cases where it’s crucial to have the intake narrative well-documented, with detailed first accounts from all principles on the who, where, when, how, and why in any series of events. Cases regarding misconduct in the workplace have a higher chance of being litigated following the completion of any investigation, usually through civil and wrongful termination lawsuits.

A thorough and diligent private investigator is an invaluable asset to both sides of any investigation, as they are an independent third party and do not have a stake in the outcome of the investigation. Any fact-finding performed by an objective third party stands up to a much higher degree of scrutiny by the opposition. Investigators who are directly employed by any parties in either side have a lot to lose if their employer faces ruin following a lawsuit.

Which brings us to another issue in handling the fact-finding internally. Internal investigators can have a variety of qualifications depending on the corporation’s procedure. It’s true some businesses have licensed investigators on retainer to assist in regular operations, like a business who hires a private investigator to run a background check on a candidate for an upper management position. However, depending on the size of the company, the investigating party in some corporate crises is just the head of Human Resources—who might then be supervising other subordinates to do the legwork. Human Resource managers are invaluable employees who keep businesses running like clockwork, but this does not necessarily qualify them to conduct an investigation in every possible scenario, such as investigations requiring surveillance, undercover work, or properly documenting any evidence that might be recovered. This kind of oversight can have disastrous consequences in the later stages of an investigation, or even in a court of law. The opposition’s case is strengthened when there is evidence an internal investigator has not done their due-diligence.

Corporations of all sizes, trades, and levels of notoriety experience crises throughout their history. When disaster strikes and the stakes are high, it’s important to retain the services of a qualified, licensed, private investigator to begin an investigation. It’s not uncommon for a private investigator to be hired on after internal investigators have already made an attempt. It’s best to start strong, with due-diligent service from a seasoned external investigator to lay an impenetrable foundation for a thorough investigation.  

 

Predators Use Online Gaming to Groom Minors

Predators Use Online Gaming to Groom Minors

predators online gaming

Advances in technology are constantly changing the dialogue about how we protect our children from potential predators. Over the last decade, parents have had to reform their strategy when it comes to protecting their child in the real world. Before, parents cautioned their kids on stranger danger, special code words, and remaining aware of their surroundings in public. In a new era of unfettered internet access through multiple smart devices, parents had to contend with the real world being brought into their homes, with predators targeting their children through social media. Now, it appears parents will yet again have to add some new pages to the playbook when it comes to protecting their children from predators on video game platforms with integrated social networking.

Parents with children between the ages of 12-25 will likely be familiar with the online first-person shooter video game known as Fortnite. In the game, 100 players at a time compete to be the last one standing in a battle-royale style of combat. The game features a chat feature allowing players to communicate in team efforts and other uses. It has great potential to foster team building and cooperation between young people, but also has a dark side recently illuminated by an arrest made in Florida in late January.

Authorities arrested 41-year-old, Anthony Thomas, a man who allegedly used Fortnite’s instant-messaging feature to groom over 20 minors, including a 17-year-old, with whom law enforcement allege he had a sexual relationship. The Florida Attorney General’s Office also stated Thomas has been charged with 22 counts of possession of child pornography, and other charges related to his unlawful sexual relationship with the minor. Investigators uncovered he groomed the minors by sending them gifts—including a cell phone so their communication could remain more private.  Ashley Moody, Attorney General, remarked about the predation perpetrated, “This case is disturbing, not only because it involves child pornography, but also because a popular online game was used to communicate with the victim.”

Grooming is defined as “a process by which a child predator gains the trust of a victim by building a relationship with the child and then breaking down his or her defenses.” Once a predator has earned their trust, they begin exploitation. Minors who are groomed in the gaming community are particularly vulnerable because the predator may literally be on their team. Cooperative play between players fosters a healthy, “there’s no ‘I’ in TEAM,” mentality, but predators use this relationship to manipulate the minor.

One of a predator’s greatest weapons when grooming a minor online is pop culture. The predator—perhaps unlike the minor’s parents—shows their target they’re “hip and cool”, and are able to converse at their level about something they enjoy. This causes the minor to lower their guard, and the predator begins their manipulation game, culminating in the exploitation of said  minor. Online gaming is becoming so ubiquitous predators have developed a way to sense when a minor’s gaming is suddenly being supervised. The moment a minor’s behavior changes—they stop responding to messages, or do so uncharacteristically—the predator can pick up on that and cease all communication before they’re caught.

Unfortunately, even if a parent is supervising the communication between their minor child and other players online, it doesn’t mean they cannot be groomed. In the grooming process, between the introduction and the beginning of the exploitation, predators often suggest moving their communications to a third-party app, like What’sApp or Snapchat. These are apps where communications disappear with ease, and a parent performing their due-diligence in supervising their child’s internet safety may not notice, or even know how to access. TeenSafe says it’s critical parents learn to recognize the signs of grooming in their minor child.

Signs of Groomingpredators and online gaming

  • Your child wants to spend more time online or playing games on a console, but won’t tell you why.
  • Your child does not want to discuss what he or she does online, or what websites he or she visits.
  • You notice your child is using inappropriate language he or she would not have heard within your home or at school.
  • When you walk in a room, your child quickly changes the computer screen, mutes the volume on their gaming console, or turns it off all together.

Fortnite and other games with similar messaging platforms have been on law enforcement’s radar for the last few years as the instances of these cases continues to grow. In August of 2018, Titania Jordan, a digital safety expert, appeared on The Doctors to provide parents with helpful tips—not just for supervising their children’s gaming—but also for establishing boundaries that can nip grooming in the bud.

  • Do not allow minors to have computers, game consoles, or tablets in their room without supervision. Keeping these devices in common areas will increase visibility and deter predators from targeting them.
  • Instruct your child to never reveal any personal information about themselves to people they’ve met online, especially very specific information, such as where they live or where they go to school.
  • Create a culture of openness in your home where children feel comfortable coming to you if they feel uncomfortable about an interaction they’ve had online.

People of all ages play video games, but the vast majority of players are either minors or young adults, and parents often find themselves overwhelmed with the strange new world of online gaming. Titania Jordan reminded parents knowledge is power, recommending they verse themselves in the games their children play. This can only heighten your ability to detect when something is off. This means doing research online, and actively listening when your children describe normal gameplay behavior.

Having an internet connection in your home may feel like you’re inviting predators into your home. And true, there’s no time to supervise every single activity your child does online. This is why it’s so important to nurture an open line of communication between parent and child. Not only will parents be able to sense when something is amiss in their child’s online interactions, but a strong bond between parent and child makes it less likely that an online predator will be able to isolate the child emotionally and manipulate them for the purposes of exploitation.