By: Kym Pasqualini, Feature Crime Writer for Lauth Investigations
The days of red and blue handkerchiefs, baggy pants, graffiti, rap-music, and drive-by shootings are no longer such a popular sub-culture. Believe it or not, the new kind of gangsters hold college degrees, work and hold jobs in offices, warehouses, even government positions and police departments. They are a more sophisticated criminal and have infiltrated corporate America.
No more baggy pants. Today, you are more apt to find a gang member wearing black patent leather shoes.
If you think this is not a possibility in your own company, think again. No industry or company is exempt. A University of Chicago study found gangs have increasingly adopted a clean-cut appearance while replicating techniques used by organized crime.
Described as “very sophisticated and well organized” by the Federal Bureau of Investigation (FBI), they estimate there are 33,000 violent street gangs with 1.4 million members nationwide. You can safely double that number if you count affiliates and wannabes. The number has risen steeply, up from 1996 where an estimated 400,000 gang members were accounted for in the University of Chicago study.If you think this is not a possibility in your own company, think again. No industry or company is exempt. A University of Chicago study found gangs have increasingly adopted a clean-cut appearance while replicating techniques used by organized crime.
Well-known companies, Chicago Police Department, the United States Post Office, major pharmaceutical companies, and even the Social Security Administration have found gang members within their ranks carrying out complex illegal operations netting millions annually.
According to the FBI 2015, National Gang Report (NGR), gangs have gained employment in the U.S. Military, law enforcement, corrections, and even judiciary.
From the Streets to a Global Crime Empire
Typically, gangs are known for drug trafficking, robbery, gun trafficking, intimidation rackets, prostitution, human trafficking, fraud and other crimes you may think would not infiltrate a common company. Now, they are. However gangs are concentrating their efforts on white-collar crime due to weaker sentencing guidelines and ease of making money.
The term “gang activity” involves identity theft, credit card fraud, prescription drug fraud, trafficking stolen goods, money laundering, mortgage fraud, Social Security Administration fraud, tax fraud, counterfeiting, and securities marketing manipulation. Where there is access, there will be individuals willing to participate in capitalizing and even selling their access to those interested in exploiting the system.
In New Jersey, the 111 Neighborhood Crips used a machine to make gift cards they distributed to grocery stores, pharmacies and other stores. Grand larceny accounts for 40% of all crime in the United States during 2014.
In 2015, the Outlaw Gangsta Crips in NYC made approximately $500,000 in a paycheck fraud scheme by obtaining a legitimate paycheck from an employee and using the information to create and cash counterfeit checks.
From 2004 through 2009, fraud investigations alone increased 33%, bringing losses associated with those schemes into the billions of dollars.
According to Fox Business, Gangs such as the Bloods, Crips and La Nuestra Familia are undertaking white-collar crime. They are recruiting members that possess the necessary skill-sets, according to the FBI.
When you think gangster, images of Joe Pesci and Robert De Niro, maybe even Snoop Dog, may come to mind, not the impeccably dressed executive working in a high finance position. Or, the nicely dressed woman at the bank who knows how much you deposit weekly or the amount of your company’s payroll.
In a Workforce Magazine article, “Have Gangs Invaded Your Workplace,” during 1995, California, Silicon Valley firms alone were hit with more than 50 armed robberies of microchips and electronic components with the average heist netting the robbers $400,000. “There’s a growing level of sophistication and opportunism,” says Keith Lowry, a detective in the High-Tech Crime Unit of the San Jose Police Department.
Gang members are becoming harder to weed out in the hiring process, much of the time because we commonly think of “gang members” as looking like street thugs, and these old stereotypes are costing companies billions annually.
Weeding out white-collar gang members has become increasingly difficult.
Any company can become a target or an opportunity to engage in illegal activities, like dealing drugs, theft of property or personal information, extortion. Gangs have learned they can make a lot more money by being well-dressed, educated, and articulate.
For instance, electronics firms are easy targets. A microchip or computer processor weighing less than an ounce can score several hundred dollars on the street. The sentence for being charged with a stolen microchip much less than selling an ounce of drugs.
Some gangs plant members within a company in specific department such as infiltrating dispatching, shipping or the financial departments. They can also pose as temporary workers or work for outside vendors to gain access to numerous companies.
In addition, the growing trend toward outsourcing can often lead to less control over merchandise, files, and information.
According to a Fox Business article “From the Streets to Cyberspace: U.S. Gangs Turn to White Collar Crime,” the FBI says, “Gangs are more adaptable, organized, sophisticated, and opportunistic, exploiting new and advanced technology as a means to recruit, communicate discreetly, target their rivals and perpetuate their criminal activity.”
Facebook has become the preferred method for gang members to communicate according to the FBI. “The proliferation of social networking websites has made gang activity more prevalent and lethal – moving gangs from the streets to cyberspace,” says the FBI.
Arming Your Human Resources Department
Much of the solution lies in ensuring Human Resources procedures are effective. Of course, background checks and screening procedures are vital but is there more to be done to detect a potential criminal trying to infiltrate your workforce? The first thing to keep in mind – you get what you pay for and being lax can cost you.
Local criminal checks are almost worthless; however, a full criminal screening can pay off. In addition, many applicants may have earned their GED in prison, with some digging, their history can be discovered.
Many companies cut corners and haphazardly follow procedures when screening applicants not realizing dealing with the aftermath can result in costing more when you compare it to properly vetting applicants the first time around.
Additionally, letting your applicants know you will be conducting a thorough background, previous employment, driving records, verifying degrees, criminal record check, and reference checks can also discourage many applicants from pursuing the position in the first place, which ultimately saves your company time and costs associated with the screening process.
What is important to consider is applying an effective screening procedure to contractors, consultants and temporary employees depending upon how much access they may be granted, as well as, the time they will be spending at your company.
Trusting a “temp agency” is conducting the appropriate background checks is a potential liability for your company.
Educating your employees on how to spot gang activity and how to handle it is crucial. Some companies have found having training sessions and employee meetings add to their success combatting gangs in the workplace.
Experts agree loyalty to gangs overrides loyalty to an employer. Even though they may try hard to blend in they may still slip occasionally and there are some recommendations or even subtle things to monitor.
Does your employee reside in a known gang area?
Is your employee responsible? Too much time on the phone or arrive late?
Does your employee go by a nickname and have nicknames for friends?
Do the clothes, colors or insignias stay consistent?
Does your employee have visitors at work, friend or family?
Have you noticed any graffiti in or around your workplace?
Does your employee use verbal, hand or walking mannerisms that could be associated with gang activity?
Is your employee on parole or probation?
Being a girlfriend of a gang member or being a current or former gang member is not against the law, but it could be a sign of other activity that could be detected if your HR department is cognizant of the many issues that face companies if infiltrated.
Using Private Investigators to Combat Gang Intrusion in the Workplace
Private investigators are a commonly used tool in the arsenal to combat “gang intrusion” along with malingering, theft or fraud in the workplace.
Along with surveillance and providing evidence, they can also evaluate your HR department’s policy and procedures through undercover placement or working along with the HR department to tighten up the reigns to reduce incidents of crime.
Many times, it is recommended to have a private investigator apply for employment without informing anyone in your company to best determine where weaknesses exist in the hiring process. Were all the references called? What questions were asked? Were the proper background checks completed?
It may be necessary to start at the beginning of the hiring process. In addition, private investigators can be placed in certain departments where there have been discrepancies identified to collect evidence admissible in a Court of law. It is an extra layer of protection when investigating activities at your company without violating privacy laws.
When a company suspects criminal activity, it is advantageous to hire a professional who will work with police if the legitimate criminal activity is, in fact, detected. Abuse of sick leave or malingering costs companies billions of dollars a year. This is enough to warrant the hiring of a private detective to legally document the behavior.
From filming a guy talking about starting his new business and hinting at using the employer’s database, to a meat manufacturing plant taking a cut of the supplier’s delivery, to the employee watching porn on the company computers, a private investigator can take the care needed to conduct an internal investigation legally, ultimately protecting your company and saving you a lot of money.
Reality of Sex Trafficking and Kidnapping in the US:
Corinna Slusser Missing Since 2017
Corinna Slusser was last seen in New York City in September 2017
Corinna Slusser, 19, was last seen at the Haven Motel in Queens, New York the morning of September 20, 2017. New York Police Department (NYPD) fears she was kidnapped by a sex trafficking ring and friends and family fear the worst.
According to relatives, in early 2017, Slusser had dropped out of her Bloomberg, Pennsylvania high school and moved to New York City with a 32-year old man she had hoped was giving her a “fresh start.”
Police instead suspect the man, turned “pimp”, lured her into prostitution.
Police fear Corinna Slusser has been kidnapped into a sex trafficking ring
The pimp, whose name has been withheld by police, was arrested and held on a $1000 bond.
Court documents revealed on August 25, 2017, police had responded to a 911 call at 1:15 am from the Harlem Vista Hotel and found Slusser “crying and shaking”. She told officers her pimp had stolen $300 from her while she was in the shower. He began strangling her when she confronted him, slamming her against the wall, making it hard for her to breathe.
The court issued a temporary “Order of Protection” to Slusser and a copy was mailed to the address she listed on file at her mother’s home back in Pennsylvania.
Slusser’s mother, Sabina Tuorto, opened the mail to find a copy of the order several days later. Fearfully, she called her daughter to ask what was going on; however, Slusser told her mother not to worry.
When Slusser did not show up at her grandfather’s funeral in Florida, her family reported her missing on September 12th.
On September 20th, an anonymous individual called the NYPD and told them Slusser had been seen leaving a hotel in Queens. Police have confirmed; however, she has not been seen since, elevating concerns of family and police.
Mysterious Instagram Post
On September 10th, Slusser posted a puzzling message and mysterious photograph on Instagram featuring a young woman wearing a black baseball cap and smoking a joint in the middle of heavy traffic on a city street. It was her last post since she was reported missing.
An avid social media user, Corinna Slusser’s last Instagram post on September 10, 2017
NYPD’s Vice Human Trafficking Team fear Slusser has been kidnapped by a sex-trafficking ring and passed to different pimps since her disappearance. Investigators suspect sex-traffickers kidnapped Slusser after she reported her pimp to police, a rule not to be broken in the underground world of sex-trafficking.She tagged the picture, “The Bronx”, but friends and family both have said the picture looks like it was taken somewhere in South America rather than New York.
Prior to her disappearance, a cheerleader and popular student in high school with future dreams of becoming a makeup artist, Slusser suddenly moved out of her mother’s home at age 17 and dropped out of school. While staying at a friend’s home near her mother, Slosser began suffering from depression and attempted suicide. While recovering in the hospital, she met the man who lured her to New York in March.
While in New York, Slusser sent home photographs of her new apartment in the Bronx telling family she was working “customer service” on weekends.
According to Slusser’s aunt Becker-Calfa, Slusser’s social media posts were becoming more provocative and inappropriate.
She told Oxygen, “People have come forward saying she was boasting that she was making a lot of money doing things called dinner dates but saying there was no sex involved – that was when she first moved out there – and that meant they were just paying to take her to dinner. [Police] believe that escalated into actually being a call girl. She was still being treated well and apparently was able to get her own apartment. When she wanted to go home the next day, that was when they believe she was abducted.”
On October 10th, Slusser’s mother posted a plea on Facebook, “My daughter was a great student, a cheerleader. She had many friends and lived her life as a normal teenager. I need her home and I can’t bear any more days like this, I fear the worst, but I pray for the best and her return home.”
A source told Daily News, “There is no indication she is subject to foul play,” but added nothing is certain. Slusser’s name has come up in several vice investigations giving some hope she is still out there.
As an avid social media user, there have been no posts from Slusser since September 2017.
The Toll of Human and Sex Trafficking
Human trafficking is defined as the exchange of money for services that have been obtained by force, fraud or coercion. There is little to no difference in the definition of sex trafficking.
Thomas Lauth, CEO of Lauth Investigations International, has worked missing persons, human and sex-trafficking cases for over twenty years. “Human trafficking is a hidden crime because victims are often afraid to come forward,” said Lauth. “They fear the wrath of the traffickers and may also fear law enforcement.”
A sex-trafficking victim profiled in a BBC report, “Shandra Woworuntu: My life as a sex trafficking victim,” had arrived in the U.S. hoping to start a new career in the hotel industry. Instead, she was trafficked into prostitution, sexual slavery, forced drug-ingestion and extreme violence.
Shandra Woworuntu, a human sex trafficking survivor now runs Mentari, helping other survivors.
“Customer service is the key to this job, I was told,” said Woworuntu. A graduate of finance, she passed the tests for employment and accepted the job working in the U.S. for $5,000 per month.
“I arrived at JFK airport with four other women and a man and we were divided into two groups. Johnny took all my documents, including my passport, and led me to his car with two other women,” said Woworuntu.
The driver proceeded to take her to another driver, they exchanged money and demanded they switch cars. This happened three more times. They were taken to a house where they were exchanged, yet again, to a driver with a gun.
“After just a few hours in the U.S. I was forced to have sex,” Woworuntu said. “I did what I was told.”
The traffickers who participated in Woworuntu’s kidnapping were American, Indonesian, Taiwanese, and Malaysian Chinese. One man even had a police badge though she does not know to this day if he was really an official.
She was then taken up and down I-95, to various brothels, apartment buildings, hotels and casinos on the East coast. Woworuntu said, “I was rarely in the same place, and I never knew where I was going.”
The traffickers made her take drugs like meth, cocaine and weed at gunpoint, along with alcohol. Some customers were violent, white guys, black guys, Hispanics guys, old men and even university students.
The traffickers had told Woworuntu she had to pay back $30,000 before freedom would be granted. She would have to service, at least, 300 men to afford this amount. She felt hopeless.
With all the strength she could muster, Woworuntu found an opportunity to escape. She went to police as well as the Indonesian consulate but received no help. She found herself sleeping on the Staten Island Ferry, the NYC Subway and Times Square when a man listened to her story and called the FBI.
Eventually, “Johnny” and others were arrested due to Woworuntu’s testimony. Several other women were freed because of Woworuntu’s courage.
The rest of the story is now history and Woworuntu is a success story. “The FBI connected me with Safe Horizon, an organization in New York that helps victims of crime and abuse, including survivors of human trafficking,” said Woworuntu.
The group helped her get housing and secure a job. For her cooperation with the FBI, she was granted permanent residency.
Now, 17 years later, Woworuntu runs Mentari, a Human Trafficking Survivor and Empowerment program.
The organization offers:
Art Projects
Career Coaching
Children’s Educational Books
Culinary Art Training
Mentorship
Survivor Leadership
Peer to Peer Support
Policy Advocacy
Support Groups
Training and Lectures
Job Assistance
Transitional Housing (planning)
“When we find victims of sex-trafficking, ensuring they have the proper resources gives them a better chance at overcoming the trauma of being a victim,” says Lauth. “Programs like Mentari are giving victims a fighting chance.”
Canadian Pharma Billionaire and Wife Murders Unsolved
Family Hires Team of Private Investigators
“Big Pharma Tycoon” Dr. Barry Sherman, Ph.D., 75, and his wife Honey, 70, were found dead in their Toronto, Canada home on December 15, 2017.
Media initially reported their deaths as a “murder-suicide,” but Sherman’s children all emphatically disagree with the initial police assessment.
Dr. Barry Sherman and his wife Honey
Apotex Pharmaceutical Holdings, Inc. is Canada’s largest maker of generic drugs, earning the Shermans a fortune estimated at $4.7 billion, placing Barry Sherman as the 12th wealthiest person in Canada, according to Forbes Magazine.
Apotex was founded by Sherman in 1974 and grew from a two-person operation to employing over 11,000 people. The company sells approximately 300 generic drugs within 120 countries.
Dr. Sherman had a Ph.D. in astrophysics from MIT and had formerly been the Chairman of former Cangene Corp., a Canadian biotechnology firm specializing in hyper immunes, contract manufacturing, biopharmaceuticals, and biodefense. It has been reported the company had several bioterrorism contracts with the United States before the company sold in 2014.
Honey Sherman had been active in service to the community and had been awarded a “Community Service Award” from Canadian senator Linda Frum.
“I am gutted by the loss of Honey and Barry Sherman. Our community is steeped in grief. I am heartbroken,” Frum posted on Twitter.
Sherman 12,440 square foot mansion in North York, Toronto
Described as “incredible philanthropists” and beloved members of Canada’s Jewish community, their deaths have shocked their neighborhood of North York, along with medical and political circles throughout the world.
Sherman’s Children Issue Press Release
Sherman’s four children say a murder-suicide made absolutely no sense and proceeded to issue a statement.
“Our parents shared an enthusiasm for life and commitment to their family and community. This is totally inconsistent with the rumors regrettably circulating in the media as to the circumstances surrounding their deaths,” the statement read.
“We are shocked and think it irresponsible that police sources have reportedly advised the media of a theory which neither their family, their friends nor their colleagues believe to be true,” the Sherman children said in the statement. “We urge the Toronto Police Service to conduct a thorough, intensive, and objective criminal investigation, and urge the media to refrain from further reporting as to the cause of these tragic deaths until the investigation is completed.”
Body being removed from Sherman’s Toronto home
The full story of what happened is not known but according to sources in various reports, the last time the couple was heard from was the evening of December 13th. They both arrived at their Old Colony neighborhood residence in two cars Wednesday evening after meeting with an architect for a home they were planning to build in Forest Hill, about a 20-mile drive south.
Barry, a self-admitted “workaholic”, didn’t show up at his office the following day but this didn’t cause immediate concern. The couple were found deceased in the downstairs indoor pool area of their home tied to a sturdy railing with two men’s leather belts, each around their necks. It is said they still had their winter coats and boots on.
A murder-suicide just didn’t correspond with their activities or mindset prior to their deaths. They were building a new home and celebrating the birth of a new grandchild. They were planning a wedding and booked airline tickets to fly to Florida for the holidays. Barry was about to become a member of the Order of Canada, an honor he valued.
Family Hires Criminal Lawyer and Private Investigators
Powerful criminal attorney, Brian Greenspan, has disapproved of the police handling of the investigation, demanding a second autopsy. The autopsy was conducted by a forensic pathologist on December 20, 2017, producing shocking results.
The forensic pathologist and former Toronto homicide detective found markings on the victim’s wrists consistent with being tied with a cord or plastic zip ties. However, when the bodies were found their wrists were not tied and no cords or rope were found at the scene.
The forensic pathologist also conducted a toxicology report, concluding no signs of drug use.
The Shermans were buried on December 21, 2017.
Greenspan has hired a private investigation team, including former homicide detectives, to ensure “no stone is left unturned” and work alongside police.
The team has concluded the couple had been strangled to death with two men’s leather belts around their necks and attached to the sturdy bar.
Police Theory Debunked
The Sherman’s real estate agent discovered the deceased couple in the basement of their $5.4 million home.
A Toronto Sun cited “sources close to the case” believe Honey may have been killed in another location of the house, then moved to the lower level of the home where their bodies were found.
Thomas Lauth, CEO of Lauth Investigations International, has 20 years of experience working alongside police agencies and prosecutors on unsolved murder cases. “In any homicide case, one must look at the circumstances from every viewpoint, even what may seem inconceivable,” Lauth said. “In addition to a thorough forensic examination of the crime scene, it becomes crucial to be able to analyze a crime scene for the unseen, and for anything that may create an “at risk” circumstance where someone is at higher risk to become a victim of crime be it their personal lives, business acquaintances, political activities, wealth, or all of the above.”
Political Lobbying
August 6, 2015, Barry and Honey hosted a private $1,500 per-head fundraiser for the Liberal Party at his home. The lavish event was attended by “movers and shakers” and dignitary Justin Trudeau, who became the Canadian prime minister two months later.
Reported in New Canadian Media “JDL protesters greet Trudeau at private fundraiser,” about 30 protesters organized by the Jewish Defense League of Canada, gathered outside the Sherman home to voice their displeasure of the reception given to the Liberal leader despite the Liberal party endorsing the nuclear deal with Iran.
“It is unprecedented to protest at the home of a Jewish leader,” acknowledged Meir Weinstein. If the Liberal party hadn’t backed an agreement deemed by the government of Israel to be dangerous, “we wouldn’t be here.” As Trudeau pulled up in his black van, protesters shouted, No Iran deal!” and the protest seemed to frighten attendees and community residents.
Justin Trudeau, Canada Prime Minister, friend of Barry Sherman
The Defense League was criticized for their protest and Weinstein eventually apologized for a “personal inconvenience” in a civil phone call to Sherman; however, the damage had been done.
A government watchdog group, Democracy Watch, filed a complaint against Sherman and Apotex, and in January 2017, an investigation was initiated by Canada’s Federal Lobby Commissioner to see if the fundraiser had violated government rules stating, “a lobbyist cannot lobby officials they assisted in getting elected.”
Sherman sued the Lobby Commissioner to shut down the investigation and called the investigation an “unanchored fishing expedition pursued in bad faith.”
Despite Sherman’s death the lobbying commission, Karen Shepherd, confirmed the investigation would proceed.
Could the Sherman’s be victims of a professional hit?
From all accounts, the couple was adored by family, friends and the community. Their relationship was solid and their life together peaceful and loving; however, everything needs to be considered when a murder occurs.
Barry had been sued by his cousins, the children of Lois Winter, who had helped him build his “pharma empire” in the early days. Kerry, Paul, Dana and Jeffrey Winter are four brothers who made allegations Sherman owed them 20 percent stake in Apotex based on sign contracts and verbal agreements signed when Sherman acquired their father’s company, Empire Companies, during the 1960s.
The case dragged on for nearly a decade, but a judge dismissed the claim against Sherman, in the months preceding their deaths.
The Sun article poses several questions that are certainly not out of the realm of possibility when one is worth over $4 billion and your professional life deals with the “cut-throat” business of pharmaceutical sales and even bioterrorism contracts.
As a pharmaceutical company, Sherman made his wealth by reverse engineering patented drugs from established drug companies. Sherman was also known as a “bulldog” who was not intimidated by others.
Motives? Maybe.
Former Toronto Police homicide detective, Tom Klatt of Klatt Investigations, has been brought on board to work in tandem with police and ensure “all out-of-the-box possibilities are looked at.” Klatt is a police veteran with more than 70 homicide investigations under his belt. Described as a consummate professional, very smart and a straight shooter.
Attorney Greenspan felt it necessary to hire a team of distinguished law enforcement officers to address the family’s concerns that no murder-suicide occurred as originally reported in the press.
The examination of Sherman’s death has now risen to the largest homicide investigations in Toronto history.
“Sometimes, it is necessary for a family to advocate for their loved ones,” Thomas Lauth says, reflecting upon his own experience working with police and prosecutors. “Hiring a team of investigators ensures everything that can be done is being done. It is necessary in the pursuit of justice.”
Jonathon Sherman cries as he speaks during a memorial service for his parents, Barry and Honey Sherman, as his sisters look on Thursday, December 21, 2017. (Nathan Denette/The Canadian Press)
At the Sherman home, sewers have been swept for possible evidence, vehicles were removed and surveillance within the home and neighborhood has been secured. Again, sources have said a second crime scene within the home has been carefully analyzed.
Speaking at the funeral, Jonathan Sherman says of his parents, “Our parents never left anyone behind.”
Still so many questions remain but one thing for sure is the couple died of ligature neck compressions. They were found sitting with legs out straight and sources describe them both wearing jackets that were around their arms and pulled down behind their backs.
“A private investigator is a second set of eyes and ears in a murder investigation and we must remain cognizant that whoever murdered Barry and Honey Sherman, remains on the street and a danger to others, not to mention the importance of justice for the family,” said Lauth. “I am convinced if anything was missed in the initial police search, Klatt with his investigative skills, will find it.”
Is Your Employee a Drug Trafficker? Opiates in the Workplace
According to the Centers for Disease Control and Prevention (CDC), sales of prescription opioids quadrupled during 1999 to 2014. Referred to as an opioid crisis in America, it seems we all know someone battling an addiction to prescription medications.
Opioids include prescription pills (including Vicodin, Oxycontin, and Percocet), as well as Heroin and Fentanyl, a drug that can be injected, taken as a lozenge or through a skin patch.
Nationwide 1 in 4 people who are prescribed opioids will struggle with addiction. The depth of the problem is highlighted in a disturbing CDC post stating, “Almost all prescription drugs involved in overdoses come from prescriptions originally; very few come from pharmacy theft. However, once they are prescribed and dispensed, prescription drugs are frequently diverted to people using them without prescriptions. More than 3 out of 4 people who misuse prescription painkillers use drugs prescribed to someone else.
In addition to the personal toll to the addicts and the American family touched by opioid abuse, the CDC also estimates the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the cost of healthcare, loss of productivity, absenteeism, increased injuries, addiction treatment, theft, criminal justice involvement, and legal liabilities.
The Drug Enforcement Agency estimates employed persons who misuse opioids account for 64.5% of medically related absenteeism and 90.1% of disability costs.
The use of opioids in the workplace is a growing battle for American business. According to a National Safety Council (NCS) survey, 57% of employers perform drug tests. However, more than 40% do not test for synthetic opioids like oxycodone, one of the most abused narcotics on the market, making accurate national statistics unreliable.
An NCS survey also found 29% of employers reported impaired job performance due to use of painkillers, with 15% citing injuries due to drug use. Up to 70% of employers said their workforce has been negatively affected in one way or another.
The Impact of Drugs in the Workplace
Use of drugs impairs decision making and causes physical impairment, a deadly condition when at work. It causes an overall decline in employee morale, an unsafe working environment and increases employer liability.
It is estimated at least 1 of 6 employees use drugs at work and the toll on the workplace is costly in the following ways:
Addicts are 1/3 less productive than their counterparts
Five more times likely to cause accidents
Are absent up to 20 times more often
Five times more likely to request workers compensation
Contribute to 40% of all industrial work fatalities
Health care costs for addicts is three times higher than other employees
Admitted to selling drugs to coworkers
Admitted to stealing from employers and coworkers
It is estimated 70% of 14.8 million Americans who use illegal drugs are employed. It is safe to assume if you have drug abusers on the job, you probably also have drug dealers operating within your company.
As drug dependency increases, it is common for addicts to buy drugs from friends or coworkers and even steal from their company, co-workers and clients.
Experts have also found the number of heroin addicts have increased as it is common for an opioid user to transition to using heroin when they begin running out of pills and money. Heroin is significantly cheaper than opiates and easier to obtain. Heroin laced with Fentanyl is becoming increasingly popular because it can be 50 times stronger than heroin.
The drug dealer of today is no longer the shady guy driving a decked-out Cadillac, meeting his clients in a dark alley or an unlit street corner. Dealing drugs to coworkers is preferred over standing on the corner selling to strangers and for a drug trafficker, less risky.
At work, a dealer has an employed clientele able to afford the drugs, and someone they can establish trust with while selling under the radar of management in the restroom, parking lot, lunch-room or cubicle.
Oftentimes workplace dealers will sell drugs on credit or a “front” according to the book Undercover Investigations in the Workplace by Eugene Ferraro. Drugs are sold to an employee with the agreement of paying later, usually on payday. Co-workers make the perfect client for a drug dealer and quite a lucrative business, with one Oxycontin pill demanding up to $50-$80 each on the street according to a CNN Money article Prescription Drugs Worth Millions to Dealers.
According to Ferraro, “We have caught employees-dealers (earning less than $10 an hour from their employer) who never carried less than $10,000 cash to work.”
Paydays are usually the biggest days for drug trafficking activity. However, to pay for drugs, addicts often turn to their employers to fund their habits.
With addicts in the workplace, there is a higher incidence of theft of equipment, tools, products and part inventories where drug trafficking and abuse is occurring. Aside from being at increased risk, both abusers and drug dealers are more likely to become involved in additional criminal behavior, stealing from their employers and fellow employees.
What are the signs of drug trafficking and abuse in the workplace?
Are certain employees driving an expensive car far beyond the means of what they make working? Flaunting money? Are your employees leaving without notice to meet clients? High turnover and absenteeism and/or meeting in the bathroom or parking lot? What may appear on the surface to look like comradery, could be a sign of something more.
Robert Avery, 41, worked as the Parental Involvement Director at a Head Start program in Gadsen, Alabama. Instead of offering educational and health services to low-income children, Avery was arrested for selling the prescription drug “Roxycontin” to undercover agents from the program facility.
Even police departments are not immune. November 20, 2017, Jellico Police Department Dispatcher and Fireman Robert Rookard, was arrested in “Operation Thanksgiving Harvest” for selling drugs at work.
In August 2017, more than a dozen Atlanta USPS workers were rounded up for running an illegal drug distribution operation. Sixteen employees working at post offices across Metro Atlanta were arrested for accepting bribes in exchange for delivering kilogram packages of cocaine.
When the FBI received a tip that drug dealers were running packages of drugs through the mail system, they began an 18-month sting putting a fake drug dealer on the street to see how many postal workers they could get to sign up. In a bribery agreement, workers agreed to provide special addresses to the drug trafficker, intercepting and delivering the packages to the dealer, who just happened to be working with law enforcement. The number of postal workers who agreed to participate astounding.
While some companies may assume there is no liability for the actions of an employee, one company is feeling the devastating effects. According to the October 13, 2017, Chicago Tribune article, “Oak Park appeals board upholds pantry’s closure after employee accused of selling heroin,” it was reported The Village of Oak Park in Chicago closed the Austin Food Pantry after 55-year old store manager Edgar Lucas was arrested on 17 counts of heroin sales and possession at the establishment. Charges include 5 counts ofunlawful delivery of a controlled substance determined to be heroin. In the aftermath, the city revoked their business license.
In an appeal, the store owners stated they had no knowledge of the employee’s drug activities; however, Village of Oak Park trustees upheld the decision to permanently close the business. In a written ruling, trustee Cara Pavlick said Austin Pantry owners were “negligent, reckless and careless at a minimum in allowing their business to be operated as a place for the sale of illegal narcotics on numerous dates.”
Drug use and trafficking are often difficult to spot and many times even harder to prove. However, every employer and Human Resources department has a responsibility to ensure a safe environment for all employees, immediately addressing any infraction or suspicion to reduce liability within the workplace and protect your company.
Private Investigators – A Weapon in Battle to Reduce Illegal Drug Use
An internal investigation sometimes involves drug-testing, some use dogs, and some use undercover operatives. Wall Street and other large corporations began using private investigations long ago with the demand ever increasing.
General Motors (GM) reported substance abuse by some of its 472,000 employees and their dependents cost the company $600 million in 1987. To combat the problem, GM instituted undercover operations at 10 mid-western plants and said it would not hesitate to use such investigations in the future. That was then, and drug use in the workplace has only increased.
While employers are encouraged to practice a covenant of good faith and dealing with all employees, protecting the workplace should be the primary goal, and often requires professional private investigators to work alongside law enforcement to ferret out drug use and other illegal activity.
Conducting a private investigation not only reflects your company as being proactive, careful documentation can help achieve a conviction and reduce liability.
Thomas Lauth, owner of Lauth Investigations International, specializes in undercover investigations for both blue-collar and white-collar companies. Having spent over 20 years in the field as a private detective, he believes diligence is key to combating workplace crime. “One can never be too careful or diligent when protecting their company. When working with clients, we tailor our investigation to the needs of each individual client.”
When hired by a client, Lauth’s investigative team provides an assessment and tailors the investigation to the needs of the specific case. Working with Human Resources, the business is profiled to determine the best course of action.
The most effective way to detect drug trafficking and abuse in the workplace is to conduct a covert investigation planting an investigator within the company. Typically, the investigator goes through the hiring process like any other employee, informing minimal staff, allowing the undercover private investigator to protect their identity and integrity of the investigation.
From there, the investigator fits in with employees, developing friendships to gain information about drug activity. In Lauth’s experience, “Many times, our investigators uncover additional illegal activities, resulting from the initial investigation,”
Periodic background checks can also assist companies in identifying employees who are high risk for illegal activity. “At Lauth Investigations, we recommend conducting background checks of all employees, newer employees as well as those who have worked for the company for several years. A lot can change after the hiring of an individual,” Lauth says.
For those who may be concerned office morale may be damaged, Lauth points out a background check can be conducted legally without the employee’s knowledge. “Background checks can reveal drug offenses, fraud, theft and other criminal activity on record with a police department or court and one of the most important steps a company can take to protect their company.”
From the desk of Kristen Justis, Director of Marketing and Customer Relations
DANGERS OF ONLINE DATING FOR ALL GENERATIONS
PART FOUR – THE YOUNG SOLDIER
In previous postings in this series, I have discussed a widower, a divorcé, and a professional who were victims of online dating scams. One would like to believe scammers would have some conscience and stay away for our active duty military or even our veterans. This is not the case. Scammers are not particular when choosing their victims. Lauth Investigations International, Inc. recently handled a fraud investigation for a young military soldier who had been in a long term, live in relationship with a scammer he met online. Many believe these scams occur quickly; however, these individuals are committed and they get themselves in deep in order to complete the scam in its entirety.
Below is a description of a Lauth Investigation’s fraud case which shows military are a prime target for these scammers as they are gone from home often for months at a time. They are not able to be in tune with what is happening at home while they are deployed.
The Young Soldier
Jack is a twenty-two year old Army soldier. He met Gina on line while he was stationed in Kentucky. Gina and Jack began dating and their relationship grew over a period of two years. They are in love and decide to move in together. Jack proposes, they move into an apartment and they are ready to start their life.
In the meantime, Jack has completely isolated himself from his family and friends. His mother, Tara, hadn’t heard from him for over a year. Gina has been added to Jack’s bank account and she has taken control on his finances. In a long term, engaged, relationship, one party taking over the finances is not typically a red flag.
In the summer of 2017, Jack learns he is being deployed to Afghanistan. He attends training in Texas prior to his deployment. While in Texas, Tara broke up with Jack but told him she would watch over his finances and apartment while he was in Texas and through his deployment. Heartbroken and hoping they would get back together once he returned to Kentucky, he agreed to allow her to maintain her control over his finances. Jack even began paying her a monthly rate since she was handling his finances.
After a few weeks of being deployed, Jack finds out, through a neighbor in Kentucky, Tara has moved in another man to Jack’s apartment where he was paying the rent. Once Jack found out, he called Tara and told her he was getting rid of the apartment as he didn’t need it anymore. He advised his parents were coming down to move his items from the apartment.
Jack proceeded to draw up a Power of Attorney for his parents to take over his finances. In the time it took him to get the Power of Attorney, Tara had drained his bank account, shut off his debit card and moved all items from the apartment. By the time his parents arrived at the apartment with a moving truck, the only possessions remaining were some of Jack’s clothes. Tara became a ghost.
Jack’s parents immediately hired Lauth Investigations to attempt to locate Tara in hopes of finding some justice for their son. The experienced private investigators began to uncover the full scope of the fraud which had taken place. The scam on Jack was found to be a well thought out plan.
The private investigators found Tara’s boyfriend who moved into Jack’s apartment was, in fact, her husband. They have pulled this scam on numerous individuals. They meet military personnel online, develop relationships with them (men and women), take over the finances, skim money from the accounts, and disappear with all the money once their true intent surfaces.
Unfortunately for the individuals like Jack, they willingly add the scammers to their bank accounts, thereby making the money common property between the two individuals on the joint account. There is no criminal recourse for this action. The victims may pursue civil action against these thieves; however, the victims generally do not have the money to take this next action.
Lauth Investigations assisted in locating this thieving couple and provided Jack with information to file civil suit against them. Jack reported both individuals to the online dating site they utilized. Hopefully, they will learn their lesson and stop preying on our military.
Private Investigators provide answers for victims and handles cases the police are unable to investigate. Utilizing a private investigation firm is key to uncovering the truth, arming victims with ammunition to proceed as necessary, and hopefully stopping criminals from harming other individuals in the future.
According to Ferraro, “We have caught employees-dealers (earning less than $10 an hour from their employer) who never carried less than $10,000 cash to work.” 
Even police departments are not immune. November 20, 2017, Jellico Police Department Dispatcher and Fireman Robert Rookard, was arrested in “
Unfortunately for the individuals like Jack, they willingly add the scammers to their bank accounts, thereby making the money common property between the two individuals on the joint account. There is no criminal recourse for this action. The victims may pursue civil action against these thieves; however, the victims generally do not have the money to take this next action.