This is a presentation I assembled for the ASIS International Seminar in 2011.

1. ASIS International 57th Annual Seminar and Exhibits ORC: We’ve Come A Long Way Joe Davis CPP, CFI Director-Field Loss Prevention T-Mobile Rob Koperski Sr. Investigator- AP Wal-Mart Alan Greggo CPP, CFE Director- Loss Prevention Thirty-One Gifts LLC

2. Organized Retail Crime Defined Organized Retail Crime is Theft/Fraud from retail stores by professional criminals known as (Boosters) with the intent of converting into financial gain. Characteristics Multiple subjects Multiple locations Theft and Financial Crimes Involves more than just the removal from the store

3. What Makes it ORC?

4. How the Relationships Work

5. ORC’s Statistical History According to the National Retail Federation

6. ORC’s Statistical History According to the National Retail Federation

7. ORC: Top Affected Cities

8. Size of the ORC Problem? According to Congressional Testimony and reporting by Industry Experts ORC losses are up to $30 Billion Annually.

9. Who Benefits from ORC? Not USA; States Lose $1.8 Billion A Year in Taxes From ORC

10. ORC Affected Industries

12. Configurable User Dashboard Controls

13. Advanced Data Searching to find the information you are looking for

14. Link Analysis Tools to help surface patterns and trends

16. LERPnet 2.0 LERPnet2.0 has an easy navigation system, simple data entry and a variety or reporting displays available to help you make the most of the data…

18. Locate/Network with retailers and LE contactsOnline System Help and Training

19. LERPnet 2.0

20. ORC Coalitions CLEAR- Coalition of Law Enforcement And Retail The Coalition Against Organized Retail Crime International Anti-Counterfeiting Coalition in Washington, DC

21. David George, CFI, LPCVice President of Asset Protection for Harris Teeter Supermarkets : “Are Retailers Causing ORC?” Each of us in the Loss Prevention profession has a responsibility to build an anti-ORC buying program by which our companies must abide. Only then can we win the battle against ORC. To do this, one must:Step 1: Meet with their executives and explain how buying stolen product creates the demand for more stolen product.Step 2: Get a Commitment That Your Company Will NOT Purchase Stolen Product. (This may entail revamping incentive structure for buyers.)Step 3: Communicate Expectations to suppliers (i.e., send vendors letters, establish procedures for violations, etc.).Step 4: Create a "Right to Audit" clause in all supplier contracts that allow unannounced visits to supply warehouses.Step 5: Audit for Compliance. (Inspect Lot Numbers after you receive product).

22. Just one of the Gang!

24. December 8th 2010 – Beaumont, TX Tommie M – Investigation / Analysis / Indictment At 09:00 hrs the Retail Sales Manager for the T-Mobile Beaumont, TX Parkdale Mall kiosk discovers that the storage room has been burglarized. Approximately $60k to $70k in phones are stolen. T-Mobile Regional Loss Prevention Manager for south Texas is advised of the burglary. He determines that the Zoombak GPS locator device was taken in the burglary and proceeding at 78 mph 700 miles west of Beaumont on I-10 nearing El Paso. Parkdale Mall – Beaumont, TX

25. December 8th 2010 – Beaumont, TX Tommie M – Investigation / Analysis / Indictment Texas Rangers stationed in El Paso are advised on the progress of the Zoombak in an as yet unknown vehicle. A black van is determined to be the suspect vehicle When the GPS data indicates a precise stopped location on I-10 in El Paso, TX . Three suspects are arrested in possession of 180 T-Mobile phones from the Beaumont store. The suspects are Los Angeles, CA residents. El Paso, TX

26. December 7th 2010 – Beaumont, TX Tommie M – Investigation / Analysis / Indictment Previous night : Arrested suspect / T-Mobile Customer Tommie M’s MSISDN is in the Parkdale Mall area at 18:20 hrs, pings tower A3H0057A located 0.4 mi from the store at 22:04 hrs and remains in the area until 23:37 hrs. At 23:37 hrs Tommie M. MSISDN travels west on I-10 in pinging off multiple towers until stopped by Texas Rangers in El Paso.

27. Tommie M – Investigation / Analysis / Indictment February 11th 2010 Northridge Mall Burglary Tommie M’s phone seized at the time of arrest was stolen from the Northridge, CA T-Mobile store 10 months earlier on February 11th 2010. This is Tommie M at the Northridge T-Mobile store at 09:54 hrs on February 11th 2010 Northridge Fashion Ctr Mall – Northridge, CA The MO for the Northridge CA Burglary : Black male wearing T-Mobile shirt empties out mall kiosk of phones before or after hours has been seen in other burglaries.

28. Tommie M – Investigation / Analysis / Indictment Tower pulls from burglaries with similar MOs show Tommie M outside the Greeley, CO burglary on August 10th 2010, The Las Vegas burglary on June 30th 2010, And the Olympia WA burglary on March 5th 2010.

29. Tommie M – Investigation / Analysis / Indictment Tommie M’s call history identifies an associate, David R, whose Cell tower activity, along with Tommy M’s indicates their collusion in burglaries in Escondido Mall – Escondido, CA

30. Tommie M – Investigation / Analysis / Indictment Puente Hills Mall – City of Industry, CA City of Industry, CA

31. Tommie M – Investigation / Analysis / Indictment Santa Anita Mall – Arcadia, CA Arcadia, CA

32. Tommie M – Investigation / Analysis / Indictment Burglary warrants have been issued for Tommie M for the Beaumont , Texas and Northridge CA burglaries. Burglary warrants have been issued/requested on David R and Tommie M for the Arcadia, City of Industry and Escondido, CA burglaries. Federal prosecutors in Texas are pursuing Interstate Transportation of Stolen Property charges against Tommie M

33. States Have Taken Action

35. STATE LEGISLATION Maine- Act to Prohibit Organized Retail Theft- defines the category of organized retail crime, as two people working in concert. Stolen merchandise must equal $1,000 to be considered a felony currently.

36. STATE LEGISLATION Ohio- Ohio's Organized Retail Theft Law, April 2009 The law makes clear that organized retail theft is a corrupt practice that can be prosecuted under Ohio's corrupt practices law It defines the crime as theft of retail property valued at more than $500 with the intent to sell, deliver or transfer it to a fence for resale The law also ensures that prosecutors can seek forfeiture of the criminal's property

37. H.R. 1173, the Organized Retail Crime Act of 2009- defines ORC- for the first time ever, makes ORC a federal crime - establishes that the operation of auction sites could be considered "facilitation" of ORC unless the operator shows specific steps had been taken to ensure goods being sold were not fraudulently obtained or stolen- require operators to adopt new tracking and reporting - allows retailers to sue over the sale of stolen merchandiseH.R. 1166, the e-Fencing Enforcement Act of 2009- requires online auction operators to retain information about high-volume sellers - requires operators to provide the above information once a valid police report is filed Federal Legislation

38. S.470, the Combating Organized Retail Crime Act of 2009- enhances sentencing guidelines for those engaged in ORC activities - requires online marketplaces to retain certain information about high-volume sellers- requires physical and online marketplace operators to review the accounts of sellers engaged in possible criminal activity and file suspicious activity reports with the Attorney General- requires physical and online marketplace operators to suspend the activities of sellers when there is clear and convincing evidence that they are selling illegally-obtained goodsH.R. 4011, the "Organized Retail Crime Prevention and Enforcement Act of 2009- amends existing federal offenses of transportation and sale of stolen goods to encompass offenses linked to organized retail crime, subject to a lower offense threshold than in current law- establishes task forces in six federal districts to combat organized retail crime, and authorize appropriations for them- the legislation would not impose any new duties on online marketplaces or auction sites Federal Legislation

39. Federal Legislation In November 2010, H.R. 5932, the Organized Retail Theft Investigation and Prosecution Act of 2010 , passed in the House of Representatives This bill would have protected both retailers and consumers against the massive economic costs and risk to public health and safety The new Congressional session started in January 2011 and NRF is working with members of Congress to explore similar legislation this year

40. We Have Come a Long Way Questions?

41. ORC: We Have Come a Long Way Alan Greggo Thirty-One Gifts LLC Agreggo@Thirtyonegifts.com (614) 414-4667 Joe Davis Joe.Davis133@T-Mobile.com (425) 233-0628 Rob Koperski Robert.koperski@wal-mart.com (479) 657-8822