by admin_lauth | Jan 23, 2017 | Corporate Investigations
When Hiring a CEO Goes Wrong
Hiring a CEO is a long and arduous process. Companies can’t afford to waste time and money on the wrong candidates. It’s bad enough when someone gets a CEO position and isn’t good at their job. It’s even worse when they have to resign in embarrassment.
More frequently than you might suspect, companies hire someone for a top executive position without doing a thorough background check. Instances like these not only waste company resources, but they hurt the company’s image and make securing top talent in the future harder. Here are a few times a more thorough vetting process could’ve protected a company’s resources and reputation.
Monica Crowley
Monica Crowley was a research assistant to Richard Nixon in the 1990s. She received a PhD from Columbia University in 2000 and was a political commentator for The Wall Street Journal, Fox News and MSNBC, among others. She has published multiple books as well.
When Donald Trump won the presidency he initially nominated Crowley to be the Senior Director of Strategic Communications for the National Security Council. Quickly after her nomination reports began circulating that Crowley had plagiarized large portions of the books she had written.
Initially the Tump administration said they stood by Crowley and that the attacks on her were politically motivated. However more and more evidence of Crowley’s plagiarism began to mount.
Crowley was found to have not only plagiarize portions of her books, but also her PhD dissertation for Columbia University. Harper Collins, Crowley’s book publisher, withdrew her books from being sold and Columbia said they were reviewing their records.
Crowley’s plagiarism went from minor footnote to national spectacle overnight. After standing by Crowley during the initial accusations, the Tump administration ended up withdrawing her nomination. This whole scandal could’ve been avoided with basic cross referencing and data mining.
Gustavo Martinez
Gustavo Martinez was the CEO of J. Watler Thompson, a major company in the advertising industry. JWT has over 10,00 employees working in more than 200 offices across 90 countries.
Martinez is originally from Argentina and became Global President of JWT in 2014. In January of 2015 Martinez was named CEO. Within a year of his promotion, Martinez was named in a lawsuit alleging discrimination by a female employee.
The lawsuit claimed Martinez had made numerous racist remarks during a company meeting. Martinez is said to have told employees to double check their bags and belongings since the hotel where they were staying had so many black people. Martinez is also accused of making comments about raping female employees.
One of the more shocking aspects of this case is the brazenness of Martinez. All of these comments were made in front of large groups of people. His comments about black people potentially stealing employees belongings are even on video. In fact, Martinez had been known to discuss his distaste for Jewish people.
Martinez’s willingness to speak this way publicly surely could have been discovered before he was made CEO. Instead J. Walter Thompson is now engaged in a high profile lawsuit and lost their CEO. Extensive background investigations can protect your company from embarrassing headlines and wasting money fighting lawsuits that should never have happened in the first place.
Scott Thompson
Scott Thompson is an American businessman with an impressive resume. Thompson had a long career in technology before becoming the CEO of Yahoo in 2012. He had been the Executive Vice President of Technology Solutions for Inovant, Chief Information Officer for Barclays Global Investors, Chief Technology Officer and then President of Paypal.
Thompson’s work history made him appear to be the perfect candidate for almost any job in technology. How could he have gotten so many high level technology jobs without any skeletons being rousted from his closet?
Despite his exceptional work history it turns out that Thompson had been falsifying his resume. After six months as the CEO of Yahoo, Thompson was forced to resign after it was discovered he lied about his college education. Thompson claimed to have received bachelor’s degrees in computer science and accounting from Stonehill College.
When Stonehill College was contacted about potential discrepancies on Thompson’s resume, they would only confirm he had received a degree in accounting. Thompson blamed a headhunting firm for the false information, but the firm strongly denied the allegation. Yahoo has been struggling to find stead leadership ever since.
All of these cases share a common theme; they were all 100% avoidable. There is no excuse for hiring a CEO who has to resign in disgrace with a year of employment or even before they begin the job. Private investigation firms like Lauth Investigations International can identity these issues before your company makes a move.
Companies aren’t just wasting time and money on unqualified candidates, but they’re risking their reputations. Appearing dysfunctional is bad for investors and makes it more difficult to secure qualified candidates in the future. Lauth Investigations International has the investigatory skills to protect your business from self-inflicted wounds.
David Schroeder, Blog Writer, Lauth Investigations International
by admin_lauth | Nov 29, 2016 | Corporate Investigations, Tips & Facts
Human Resources has a tough job when it comes to screening future employees. They’re betting on someone whom they’ve only met in person maybe three times. Not every candidate can be a winner, but that doesn’t mean you should accept the losers.
Every business takes on some level of risk when they bring on a new-hire, but how serious is employee theft? The 2015 US Retail Fraud Survey says, “Overall the biggest area of store loss remains employee theft with 38% of respondents citing it as the number one area of store loss and, across first, second and third highest causes of loss, scoring 59 points.” Here are some ways Human Resources can better vet employees and prevent future theft.
Ask tough questions throughout the interview process
Interviewing job candidates is the best chance you’ll get to learn who they are before hiring them. Take advantage of these opportunities to ask candidates tough questions about their past. This may seem like an obvious tip, but it’s one many people can find difficult to execute.
People can be surprisingly candid about things they’ve done in the past and may be more open than one would expect. In these moments of truth human resources is given the opportunity to evaluate the honesty of the candidate.
Follow-up with multiple references
There’s a reason every business asks for multiple references when considering candidates for a position. After you’ve interview a candidate face-to-face you’ll have a better idea of who they are and what questions you still have about them. Following up with a candidate’s references can be very illuminating.
Calling just one or two of the references should not be seen as enough. Every candidate should supply at least three references to be considered for employment. These should be professional references, not friends or family. Call at least three references when considering any candidate.
Use a Private Investigations firm to help
Human Resources departments only have so much manpower they can put towards vetting employees. With all of the duties HR handles it increases the chances that someone will slip through the cracks and get hired when they shouldn’t have.
You might not need them for every candidate, but Private Investigation firms can help any business be certain about the people they’re hiring. When businesses are expanding they may need to hire people rapidly. Instead of asking HR to do more with less, contact a private investigations firm and see how they can help shoulder the load.
For Private Investigation Inquiry contact Thomas Lauth, Lauth Investigations 317-951-1100
David Schroeder, Blog Writer, Lauth Investigations International
by admin_lauth | Nov 7, 2016 | Tips & Facts
What is malingering? Malingering is defined by Merriam-Webster as, “to pretend to be sick or injured in order to avoid doing work.” The most famous malingerer might be Ferris Bueller, but while he only cost his friend’s dad money buying a new car, malingering Americans cost billions of dollars a year. According to a study available in the US National Library of Medicine, malingering adult mental disorder claimants costs were $20 billion in 2011. Below are some ways you can nip malingering in the bud.
Apply standards consistently
In order to make sure employees understand expectations and don’t feel singled out, standards and practices have to be enforced consistently. If you make one employee get a doctor’s note after calling in sick then you need to make every employee do the same. Medical issues are a sensitive topic and companies can get into hot water if an employee feels they’re being treated unfairly due to their health. Consider printing out a guide explaining expectations and having employees sign a sheet acknowledging they received one so there’s no confusion if this becomes an issue.
Ask for proof
If an employee is having bad enough medical issues to miss work then they should see a doctor to find out what’s going. Getting sick for a day isn’t uncommon, but when a medical issue regularly prevents an employee from working, something needs to be done. It’s not unfair for an employer to ask for documentation of the problem.
Knowing ahead of time that proof will be required when they come back to work will help deter malingering and prevent excuses about why they couldn’t provide proof. Even if you trust the employee, always get documentation for company records and to ensure consistently applied standards.
Be accommodating to employees needs
Even if you suspect an employee is malingering, be open to accommodating their needs. If they are malingering then they’ll lack excuses for not working when the company shows it’s ready and willing to work with them. If they’re not malingering then the company will have already done the right thing by creating an accommodating and inclusive environment. Making it tougher for employees to excuse their lack of work actually makes it easier for employees with genuine issues to work.
Be patient whether they’re faking it or not
Determining if an employee is malingering can take time. One of the most famous cases of malingering is the 1927 Bruneri-Canella. Brunei, a petty thief and con-man, pretended he had amnesia and was mistakenly identified as an Italian professor that went missing in World War I. The thief kept up his charade for years even pretending not to remember his family despite them identifying him. Eventually a court determined he was faking it. Patience is needed because if an employee is faking it, eventually they’ll be caught, but if they’re being honest, rushing to judgement is a big mistake.
Investigate
When an employee continues to claim they’re having medical issues, but you suspect something is off, contact a private investigator to look into the matter. It’s never fun to accuse someone of lying, but it’s a lot less fun to lose money to a scammer. Private investigators will be able to quickly find out if the employee is malingering or genuinely having problems.
by admin_lauth | Nov 2, 2016 | Corporate Investigations, Tips & Facts
Is an employee selling drugs from their job? What are signs of drug trafficking in the workplace? What can human resources do to stop drug dealing at work? These are questions every business owner and human resources department should be asking themselves before contacting a private investigator.
Why is an employee meeting with people in the parking lot on break?
It’s common for drug deals to happen in cars. It makes for a quick and private way to do an exchange in plain sight. In the backseat of car, on break from work, is where Jade Violes sold heroin while working at a Pizza Hut in Indiana.
In 2015, Violes was arrested for selling heroin after an undercover police officer purchased from her in the Pizza Hut parking lot. If an employee is meeting with people in cars during work hours it’s not unreasonable to suspect they may be selling drugs.
Why do employees keep meeting in the bathroom?
Do employees sell drugs in the bathroom at work? At the Senate mail room in Pennsylvania they did. This past March two employees of the Pennsylvania Senate were charged with crimes related to the distribution of heroin. A third employee was also fired from their job in connection to the drug peddling.
Police were alerted to the crimes when an employee not involved in the inter-office drug trade found 20 packets of heroin in the bathroom. Corey Miller was charged with possession with intent to distribute a controlled substance after police found eight more packets of heroin in his wallet. Bathrooms can offer privacy to employees that some find too tempting to resist exploiting.
How can they afford all that stuff?
Does driving a fancy car mean someone is selling drugs? What about buying a new big screen TV and the latest smart phone? What if an employee is doing all of this and more? If this is the case then you may want to call an investigator.
Human resources departments know how much an employee earns from their job. If an employee is suddenly showing up in expensive clothes with fancy accessories and they haven’t picked up a second job then something could be up. It’s one thing to live outside your means, but there are limits to how much one can acquire on credit alone.
We recently fired an employee for using drugs at work. Could there be more?
Was an employee recently fired for using drugs at work? Were they the only person using on the job? Were they buying drugs at work? These are questions every human resources department should be asking when an employee is caught using drugs on the job.
Some businesses believe the nature of their work precludes them from having drug dealers in their midst, but that’s a mistake. It may be easy to write-off drug dealing from Pizza Hut, but it’s tougher when someone like 53-year-old James Peter Kranyecz gets busted selling marijuana, cocaine and methamphetamine from the church he worked at.
We caught an employee bringing drugs to work. Were they the only one?
Catch an employee with a small amount of drugs? Don’t just assume it was for personal use. The packaging and quantity of drugs should be taken note of when considering what to do next. Did the employee bring drugs on-site for personal use or were they distributing to coworkers? Was the employee acting alone or with their coworkers?
Earlier this year five United States Postal workers were arrested after conspiring to help distribute marijuana through the postal system. First, the postal workers gave their work schedules and routes to a drug dealer. Then the dealer timed when he mailed the drugs to make sure they ended up in the postal workers’ hands. According to News 5 Cleveland, Michael Tobin of the US Attorney’s Office said, “These are folks who had jobs, decent jobs as mail carriers, and they threw it all away for $200, $300, $400 of cash.”
For Private Investigation Inquiry contact Thomas Lauth, Lauth Investigations 317-951-1100
David Schroeder, Blog Writer, Lauth Investigations International
by admin_lauth | Oct 8, 2016 | Tips & Facts
1. Keep your employees safe
Keeping employees safe is the humber one priority for most businesses. According to the United Stated Department of Labor Occupational Health and Safety Administration, 2 million workers report being the victim of workplace violence every year. 4,679 fatal workplace injuries happened in 2014 with 749 of those deaths being ruled homicides.
Protecting your business from the threat of violence must be a top priority in order to create a safe and productive space for your employees. Employees shouldn’t be anxious about their safety and neither should you.
Increased emphasis on pre-employment background checks can keep potentially violent people off of a company’s payroll. Annual background checks of current employees will help detect changes or rising threat levels before anything bad can take place. Private investigators can screen employees for red flags and let you know about them before it’s too late.
2. Save money through employee retention
“Where do you see yourself in five years?” Some form of that question is asked in every single interview across America. Businesses don’t want to hire people for the short term. They want people that will stick around and be part of their company for years to come. Long term employees bolster company culture and cohesion. They also save businesses money on training costs.
The Center for American Progress reported in 2012 that the average cost to replace an employee fell between 10% and 30% of that employee’s annual salary. Searching for new employees sucks time and money from other activities managers could be working on. Improved background checks will protect any company’s investments by helping them make the right choice the first time they fill a position.
3. Protect your assets
Employee theft is a major problem for businesses. Costing up to $18 billion annually, everything that can be done to prevent employee theft must be done. Companies won’t always know before hiring someone if they’re more likely to commit theft, but expansive background checks can help detect early warning signs.
Credit checks are an excellent indicator of an increased risk of theft. For years the government and military have run credit checks on all personnel seeking security clearances. The higher someone’s debt and lower the credit, the higher their chances of being compromised by financial gain.
Has the employee stolen before? Do their former coworkers consider them honest? Beyond credit checks, a deep look at past employment can help indicate if someone might steal. Private investigators can find all this information and more.
4. Investigate social media history to prevent going viral for the wrong reasons
Going viral is all the rage for companies in 2016. Everyone wants to be the talk of social media and to trend on FaceBook and Twitter. Companies spend a lot of money on marketing and promotion aimed at creating the next online sensation. But what happens when you go viral for all the wrong reasons?
in 2012, Jessica Harr was a bartender for Proof Nightclub in Chicago when her Facebook page regrettably caused the club to become the talk of the internet. In an extremely racist FaceBook post Harr described African Americans as “ignorant” “stupid,” and “apes.” Harr even swore she’d never hire an African American for those reasons.
The post quickly went viral and numerous people threaten to boycott the club. Other club owners came out and said they’d had issues dealing with Proof Nightclub as well. Harr was quickly fired, but Proof’s brand was damaged and they had to commit serious time and money to repairing their identity.
In the age of social media, companies cannot afford to ignore their employee’s social media pages. One post is all it takes to stoke outrage and retaliation against a business for those they employ. If your background checks don’t include extensive online research then you need to make a change fast. Protect your brand and go viral for the right reasons.
5. Trouble with past employers
When companies interview job candidates it’s important they not only verify their work history, but investigate it as much as possible. Verifying the dates of employment is a good start, but finding out how the candidate interacted with coworkers and management is vital to thorough vetting.
Private investigators are perfect for building a profile of any candidate to better evaluate their chances of success if hired. Was the candidate considered a team player at their last job? Did they show up early and leave late or cut corners to get out as quick as possible? Don’t waste your time on employees who won’t give your company 100%. Find out who they are before you pay them for who you think they might be.
For Private Investigation Inquiry contact Thomas Lauth, Lauth Investigations 317-951-1100
David Schroeder, Blog Writer, Lauth Investigations International
