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 Client Relations
DANGERS OF ONLINE DATING FOR ALL GENERATIONSPART THREE – THE PROFESSIONAL
In previous postings in this series, I have discussed a widower and a divorcé who were victims of online dating scams. Many believe online dating scams only occur when victims do not meet the perpetrator in person and when the perpetrator lives out of the country. This is far from the truth. Lauth Investigations International, Inc. has handled several cases of scam and fraud in relation to online dating sites. Many of these relationships have been in person, long term, and heading towards marriage. The scammers are committed to their end goal and they stay the course of the scam for months, even years.
The following Lauth Investigations fraud case focuses on a professional woman in her mid-thirties. We hear of the cases often where the victims are older, retired, or just plain lonely. Lauth Investigations has found young, successful professionals are just as prone to falling victim to these scams.
The Professional Woman
Julia works for a Fortune 500 company in downtown Indianapolis. She owns her home, drives a nice car and has a hefty 401k. Julia has a multitude of friends she spends her time with including traveling often. One of her friends announces she is now engaged. Julia is in her mid-thirties and eventually wants to be married with children someday. The engagement announces gets her thinking how she would like to meet someone. In that moment, she decides to join an online dating website. Managing an online profile would be an easier way to meet someone instead of leaving it to chance, especially with her busy lifestyle.
Julia begins receiving a lot of interest from various men. She meets a few of them for coffee; however, there was no chemistry. Finally, she begins receiving email communication from Scott, a professional man within downtown Indianapolis who travels often. They communicate for a few weeks and they really get to know each other. After feeling extremely connected, they decide to meet.
Scott and Julia meet for dinner. It was an immediate connection. Julia enjoyed everything about Scott and the relationship begins. Although Scott is out of town quite often for his job, they spend all their free time together. Julia finds herself waiting at home for Scott instead of spending her time with her friends. Months pass by and the relationship begins to get extremely serious. Julia is in love.
The love Julia feels for Scott grows to the point she is ready to be married. She only focuses on him and their time together, until the holidays roll around. Julia understands Scott’s job is a lot of traveling; however, he is out of town over Thanksgiving, then he must go out of town for Christmas and finally New Years Eve. Julia begins to question what kind of job makes you travel and miss Christmas with your loved ones.
The questions start to rush inside Julia. She realizes Scott never has her over to his house, he only stays at her house. He takes a lot of calls while he is with her and he always walks out of the room for these calls. He has canceled a lot of dates with her at the last minute for “work”. Julia thinks back over the year with Scott and she realizes, he has never invited her to work event, she hasn’t met his family, and he has slowly alienated her from her friends and her family.
Julia reached out to Lauth Investigations International, Inc. for a simple background check on Scott. She began to fear he may be married. Even in the initial phone call to Lauth Investigations, Julia was questioning her decision to hire a private investigator as she felt guilty for not trusting Scott. Finally, she realized it is better to be knowledgeable instead of continuing blindly further into deepening this relationship.
The beginning of the investigation, Lauth Investigation’s private investigators found Scott was not married; however, he did not work where he claimed. It was found Scott was unemployed. Further investigating into his background, investigators discovered a long list of criminal activity including Identity Theft, Fraud, Tax Evasion, and Forgery. Julia was advised of our findings and she requested to know more. Surveillance and interviews of his past relations begin.
Rather quickly, investigators discovered Scott was a professional scam artist. He dates and marries women eventually taking their money and/or identity. He had opened credit cards under these victim’s names, he married some of these victims and when he divorces them, he is entitled to a portion of their retirement and checking accounts. Scott was a career criminal.
Had Julia not decided to hire Lauth Investigations International, Inc. to investigate Scott’s background, she would have been just another victim in his long line of scams. Julia was lucky as the scam hadn’t reached the money exchange or theft phase. Julia confronted Scott and she has never heard from him again.
Hiring a private investigator when beginning to date someone new seems deceptive and costly; however, it is better to go in with your eyes wide open. Be proactive and spend some money up front before the scammers take your money and your pride on the back end. Julia has since hired Lauth Investigations to complete background checks on two potentially new boyfriends over the past couple of years. She saw how close she was to becoming a victim and refuses to be in that situation ever again.
Oftentimes Private Investigators are thought of as serving mainly the private sector. They are who you would call when you have a missing persons case, a case of infidelity or a private issue that you need resolved. In reality, this is a misconception based on common stereotypes. Private Investigators frequently serve the professional sector, and there are many careers where you may find yourself one day needing the help of a private eye. In this blog post we outline the 7 main professions that use Private Investigators, and what they typically rely on them for.
Doctor’s office- Doctor’s offices and hospitals rely on private investigators to research cases of potential abuse for their patients, background checks for employees and most importantly, malpractice lawsuits against the doctors, nurses, or technical professionals on their team. Private investigators often also research malpractice cases for patients who were the victim of malpractice. This can go both ways; however, oftentimes it is the doctor’s office that relies on the private investigation firm to help protect them from unfair accusations.
Attorneys- Attorneys often use private investigators to help them build a case against opposing counsel. Private investigators help them to collect evidence, conduct background checks on the opposing counsel, check their facts, disprove allegations they may be making against a client and generally dig up information surrounding the case. Private investigators also help clients and attorneys understand the laws surrounding common issues arising in court, such as a spouse’s right to surveillance family computers or a business owners right to spy on its employees. As lawyers commonly need to have a comprehensive idea of legal restrictions, and often are caught in cases of mistrust, betrayal, and suspicion; they are one of the private investigation industry’s most common clients.
Business owners- Business owners need to hire private investigators for various activities, which also makes them one of the private investigation industry’s most popular clients. As expected, P.I.’s often are hired simply to conduct background checks on employees, but more importantly, they are known to investigate suspicious activity in the workplace and investigate possible identity theft, monetary theft or fraud within the company or between competing companies. Private investigators can also help to regulate accounting irregularities or help handle publicity concerns for businesses. No matter the issue, business owners can rely on private investigators for confidential, fast investigations into sensitive issues.6
Human Resources Departments- Human resource representatives are another common client of private investigators because of their concern for employees. HR reps mainly use private investigators for background checks, but they also commonly use them for investigation into employee misconduct, such as fraud, employee theft and sexual harassment. Private investigators also commonly help human resource representatives look into fraudulent insurance claim investigations, mainly when employees abuse the disability insurance offered by the company. There are multiple issues where HR departments hire private investigators to look into their employees and regulate disputes, often in the attempt to avoid legal action.
Accountants- Accountants are focused on tracking numbers and answering financial questions, which is why their line of work often intersects with private investigators. Accountants have been known to use private investigators to help investigate bookkeeping issues like missing funds, fudged numbers or fraudulent checks.
IRS representatives- The IRS also sometimes needs to enlist the help of private investigators when researching tax fraud. Tax fraud can be a complex and complicated web that is difficult to untangle without the technology and knowledge that a industry specific private investigator can offer.
These professions comprise the issues of the majority of private investigation work. If you are someone in one of these positions and dealing with an issue listed above, don’t hesitate to get in touch with us here.
CNC (Covenant Not to Compete) agreements are being breached left, right, and center as the rise of entrepreneurship continues to grow and human resource departments are feeling it. More and more people are quitting their jobs in order to become freelancers while human resource departments continue to struggle with the increasing number of unexpected losses.
COVENANT NOT TO COMPETE (CNC) AGREEMENTS
When an employee leaves a company unexpectedly it causes a lot of challenges. Traditionally, CNC agreements are signed by newly employed persons once their job position has been approved. In this agreement, there is a clause stating the employee consents to not enter or start an identical trade or profession in competition with its employer. This contract acts as a provision to prevent an unfair advantage that a former employee may have when beginning a new profession or trade.
The CNC agreement is put in pursuance of protecting the firm from confidential information being leaked about their operations, upcoming products, business practices, client/customer lists and marketing plans, just to name a few. Under this clause, the employee agrees not to create schemes with the company’s trade secrets. Depending on the exact terms of a CNC agreement, a company is also protected from the soliciting of their clients by former employees as well as the recruiting of other employees to the former employee’s competing job.
HUMAN RESOURCES DEPARTMENT
According to Entrepreneur.com, “a human resources department is a critical component of employee well-being in any business, no matter how small.” Their main responsibilities include recruitment, training and development, safety, benefits and compensation, employee relations, compliance with labor laws and employee agreements, as well as termination. Once an employee decides to depart from a firm, the human resources (HR) department’s responsibility is to update the records. If a former employee breaches a CNC agreement, it is the responsibility of the HR department to find a resolution.
What’s worse is when the person that recently quit is entitled to employee benefits as he or she is probably using that money to help in their scheme against the company. You can see why the HR department would have issues. The expected action from an employee who wishes to quit a job is to provide a standard resignation letter containing a two week’s notice. Normally, when this is the case, an employer will continue to pay the employee for two weeks while they go through their employee ending checklist.
If the employee is a threat, however, it is in the best interest of the firm to terminate their contract immediately. After which, the HR department is going to have to scramble to make a replacement while the executives delegate the extra work to the remaining employees in order to maintain a smooth workflow. Next, the former employee’s building/property access needs to be revoked, and anything within their possession belonging to the company should be handed in such as IDs, company books, cell-phones, computers, etc.
THE PROBLEM
Just as more employees are leaving their companies, employers are making sure their trade names, logos, and operations are protected, their clients are secure and slanderous comments towards their company’s credibility are dealt with properly. With the help of a private investigator, companies can rest assure all proprietary information for staff lawyers and HR departments are recovered, the exposure of their trade secrets are prevented, and the purging of vendors and clientele cease.
Former employees normally capitalize on the opportunity to steal their employer’s former clients by using communication methods such as the client’s phone number or email address resulting in the company having negative credibility in the market. The most common form of CNC violation is the manipulation of clients. When there are such violations, it’s up to the HR department and the executives of the company to take action. Usually, this comes in the form of a lawsuit.
Once such case can be found on Forbes.com, Ariana Gardella speaks about Instant Technology of Chicago suing five of their former employees who left to form a competing firm called Connect Search. The reason Instant Technology wanted to sue was because they believe the former employees breached their agreement to not recruit Instant’s employees to other jobs, disclose Instant’s “proprietary” information, or solicit business from Instant’s clients.
However, when the case went to trial in 2014, the employees agreed they breached all but the non-disclosure provision agreement arguing the provisions were unfair. Unfortunately for Instant Technology, the judge ruled in the favor of the 5 former employees. After losing the case, Instant Technology appealed ending with the same ruling.
THE SOLUTION
Save your HR department some time and your executives the trouble by hiring a private investigator today. Lauth Investigations International (LII) can not only help you win the lawsuit against former employees but will also work rapidly to prevent the exposure of trade secrets, the purging of vendors and clientele, and work steadfastly to recover lost credibility. LII work towards an evidentiary solution focused on a presentation of discovered facts to resolve each conflict with corporate risk solutions.
Our private investigators assist HR departments using varying investigative methods, such as surveillance, to see if former employees are setting up similar operations and using trade secrets or marketing materials and much more. Putting a stop to the scheming before it affects your company.
Even though there are limitations to some agreements, depending on the firm, such as the geographical location and time period of the departure of an employee, HR departments are still having issues with former employees breaching their contract. Fortunately, however, due to the hard work of private investigators, there has been a rise over the past decade in the number of departing employees being sued by their former employers for breaching their agreement. In fact, this number has risen by 60% over the past 10 years.
CONCLUSION
Employee departures are already bad for companies and small businesses, but what’s even worse is that as these former employees turn to websites such as peopleperhour.com and upwork.com to advertise their expertise often times violating their CNC agreements with the firm.
In order to prevent potential market downturns, it’s important to hire a private investigator who can minimize the impact of the scheming of trade secrets by surveilling former employees, conducting research on their newly formed business, and collecting evidence in order to prove a breach in the CNC agreement. Ultimately, saving you and your company time and money and allowing you to maintain great client relationships.
One of the most critical things private investigators do is collect and compile pertinent information to help bolster a legal case. Whether it’s to provide evidence of insurance fraud in a corporate investigation case or gather the proof needed to tip the scales in a child custody situation, the records filed in court can mean the difference between a nail-biter and a slam-dunk case. That said, there are certain things one should understand about court records before proceeding, including how to leverage them to help bolster your investigation. Let’s take a look.
They’re accessible to anyone. Unlike many other means that private investigators use to check the background of a subject, court records do not require any special permission to access them. They are public record and available to anyone who requests access.
They contain factual and reliable information.In most cases, court records contain information that is obtained under oath, including depositions, sworn statements, allegations, affidavits and proceedings. Because these documents are taken under oath, the info contained within is considered to be reliable and accurate, which makes them incredibly valuable to private investigators.
There are two different types of court records – state and federal. Each typically handles its own categories of offenses. For example, state court hears civil cases, such as divorce, child custody and small claims. Federal court handles higher-level scenarios, such as immigration, social security and any federal law that’s been violated.
Having all possible names is important. If you’re looking for information about a particular person in court records, the more identifying data you have, the better your chances. For instance, many people have nicknames and some have used aliases throughout their lives. Experienced private investigators know how to dig up these details when performing research.
Different types of cases will include different information. Court records for civil cases will typically only contain the name of the parties involved. Other identifying data, such as date of birth and social security number will usually not be included. This can pose a challenge for situations in which the party in question has a common name. Federal cases contain more details.
Searching multiple databases can provide better results.The problem with many court records is that they were completed and filed by humans, which means mistakes could have been made in the process. This is why private investigators cross-check multiple sources to help identify errors, omissions and other incorrect information and hone in on what’s accurate.
Going directly to the court house is the most effective option.While the internet has made searching court documents and other legal databases much easier, the only way to access actual court records is to visit the court in person.
When it comes to finding information and making a case stronger, court records can provide the ammunition needed. Understanding what these filings mean as well as how to best search and access them can make pulling the information you’re after much easier and more efficient. Of course, nothing replaces the services of skilled, seasoned private investigators. If you need assistance with anything from a basic background check to a detailed personal or corporate investigation, Lauth Investigations International, Inc. can help. Give us a call today at 800-889-3463to discuss your specific needs.
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 “Operation Thanksgiving Harvest” for selling drugs at work. 
The questions start to rush inside Julia. She realizes Scott never has her over to his house, he only stays at her house. He takes a lot of calls while he is with her and he always walks out of the room for these calls. He has canceled a lot of dates with her at the last minute for “work”. Julia thinks back over the year with Scott and she realizes, he has never invited her to work event, she hasn’t met his family, and he has slowly alienated her from her friends and her family.
Rather quickly, investigators discovered Scott was a professional scam artist. He dates and marries women eventually taking their money and/or identity. He had opened credit cards under these victim’s names, he married some of these victims and when he divorces them, he is entitled to a portion of their retirement and checking accounts. Scott was a career criminal.
