Category Archives: Crime

by | March 15, 2013 · 6:41 am

Hospitality Industry Legal Risks: California Restaurant Sued By Woman “Sexually Assaulted” By Employee Near Restroom; Failed To Perform Background And Reference Check

“…the lawsuit filed in San Mateo Superior Court alleges that Straits owners failed to provide a background or Hospitality Industry Criminal Background Checks (2)reference check for Guicoy that could have shed light on his “mental instability and propensity toward sexual assault…”

A Foster City woman is suing a restaurant where a dishwasher attempted to rape her as she waited to use the restroom on New Years Eve 2011. Now Mary Hagan, 35, has filed a $1 million lawsuit against Straits in Burlingame, claiming it could have performed a background or reference check on Jose Mauricio Guicoy before hiring him.

Guicoy allegedly grabbed Hagan and began pulling her into a closet with his pants unzipped, reported the San Mateo County Times. She was able to fight him off.

Guicoy pleaded no contest to sexual battery, and was sentenced a month later to two years in prison.

For more:  http://sanmateo.patch.com/articles/foster-city-woman-sexually-assaulted-by-dishwasher-files-lawsuit-against-restaurant

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by | March 12, 2013 · 6:31 am

Hospitality Industry Legal Risks: Hotel And Restaurant Management Must Conduct Criminal Background Checks To Avoid “Negligent Hiring Lawsuits”; Screening Must Be Relevant To Job Description To Avoid Discrimination

“…Hospitality employers (conduct criminal-background checks) to avoid negligent hiring lawsuits – a lawsuit from a guest or customer, for example, based on a hotel’s failure to properly screen an employee who later does Hospitality Industry Criminal Background Checks (2)harm…for each job description, (management) should prepare a memo that describes the relevance of, and need for, such information and how it is related to the particular job description…it is inconsistency in the selection of what type of background check each applicant gets that can often get employers sued for discrimination…”

According to some studies, over 90% of employers conduct criminal-background checks for some job applicants and over 70% of employers conduct background checks on all potential new hires. This includes many hospitality-industry employers. Most decision-makers want information about criminal behavior and other related data before bringing a candidate into the organization.

For example, the Equal Employment Opportunity Commission (EEOC) and some states are taking the position that, given the disproportionate rate of minorities that are arrested and convicted of crimes, an employer’s policy of disqualifying all applicants with criminal history can have a discriminatory impact on minority candidates and thereby violate Title VII’s discrimination laws.

Each state has its own position on the use of arrest and conviction records. Even when abiding by those parameters, there is still the need for a comprehensive, consistent set of procedures regarding the use of criminal history to avoid claims of discrimination. The key here is to identify by job description prior to hiring candidates, what kind of criminal background information (including how many years back) the company will look for and to ensure that the same level of background check is done for every applicant for that position.

Establishing a policy and procedure to make sure each applicant for a job description gets the same background check and having a defensible job-related justification for the relevancy and need for the information for each job position is critical to defending against future discrimination claims.

For more:  http://www.mondaq.com/unitedstates/x/225564/employee+rights+labour+relations/And+By+The+Way+Are+You+A+Criminal

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by | March 7, 2013 · 7:18 am

Hospitality Industry Payment Risks: Hotel Tech Trade Association Releases “Secure Payments Framework For Hospitality”; Best Practices Advocates “Tokenization” And “Removal Of All Guest Credit Card Data From Systems”

Hospitality Industry Secure Payment Framework-page-001

Click on “Hospitality” to view online

Hospitality Industry Secure Payment Framework Executive Summary-page-001

For more:  http://www.scmagazine.com/hotel-tech-trade-association-offers-best-practices-for-reducing-payment-card-risk/article/283129/

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by | March 5, 2013 · 8:21 am

Hospitality Industry Theft Risks: Alabama Motel Clerk Arrested For Stealing 23 Guests’ Credit Card Information; No Background Check Because It Was “Too Expensive”

“…(the motel clerk) used his position to remove credit card information from 23 customers from the motel database and used 12 of the card numbers in a fraud scheme to steal cash from the business…the owner Hotel Credit Card Fraudadmitted that he did not do a background check prior to hiring this person…the background check was too expensive…”

Mobile police have arrested a man for credit card fraud and trafficking in stolen identities after they say he took credit card information from 23 motel customers. Police said Bryant Onell Niles, 28, worked as a desk clerk at the Baymont Inn Suites in Mobile, where the alleged crimes took place.

Police said he was found in possession of the 11 unused credit card numbers with names and expiration dates belonging to former customers of the motel. Mobile police said last year, Niles was working as a desk clerk at an unnamed hotel when he stole credit card information from a person who had stayed at the hotel.

Police said he used the guest’s information to book hotels for himself and his friends. That’s how authorities say they caught him.

For more:  http://www.fox10tv.com/dpp/news/local_news/mobile_county/mpd-hotel-clerk-stole-23-credit-card-numbers

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by | March 3, 2013 · 7:40 am

Hospitality Industry Payment Risks: Restaurants Can Utilize New “Smartphone Apps” To Reduce Credit Card Fraud, Increase Guest Satisfaction

“Tabbedout” is a new free app for smartphones. The credit card number is encrypted in the phone and tied to a tab…(the guest) can walk in, open (their) tab and show the phone to TabbedOut Merchant Payment Smartphone Applicationthe bartender (or waiter) and literally start ordering food and beer right away…when they feel like leaving the venue, press one button on (the) smartphone and leave…”

Crooks are constantly stealing credit card numbers. Often times it’s skimmers attached to credit card machines or some other crafty way to lift information. Now a new app may help reduce the chances of that and simplify the dining out experience.

Denver is a test market for a new service that makes paying a tab in a restaurant or a bar as simple as just one quick click. It’s a legal way of “dining and dashing.”

Who hasn’t been frustrated while waiting to pay a tab? And how safe is sending a credit card off with a waitperson? Now there are options. “Credit card fraud is the handing the cards back and forth. Someone will snap a picture of it and then steal your identity or take your credit card,” bartender Josh Finocchiaro said. “With this, it’s set up through your phone, so the card isn’t passed back and forth.”

Restaurants like the Ice House in LoDo like it because it means the wait staff can focus on serving good food and drinks without worrying about serving up a check at the end of a meal. Diners gain more control over their experience and there’s no waiting around to pay.

Tabbedout is now in 25 restaurants around Denver and some in the mountains as well.

For more:  http://denver.cbslocal.com/2013/03/02/tabbedout-app-helps-pay-restaurant-bill-avoid-credit-theft/

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by | February 25, 2013 · 6:48 am

Hospitality Industry Legal Risks: Texas Club Owner Ordered To Pay $10.5 Million To Family Of Woman Killed By “Monster Truck” In Parking Lot; “Dram Shop” Laws Hold Company Liable For Over-Serving Alcohol To Driver

“…(the plaintiff) sued Crutchfield and High Expectations Hospitality, the corporate name for Spearmint Rhino, pointing to state “dram shop” laws that allow a business to be held liable if it serves alcohol to someone who Alcohol Drink Responsiblywas clearly intoxicated and ended up causing harm to others…”

The parents of a 23-year-old woman killed by a monster truck outside a gentlemen’s club have won a $10.5 million civil verdict against the driver and the club for serving him alcohol. Kasey McKenzie died after she was run over in March 2011 by a pickup truck elevated on monster tires in the parking lot of the Spearmint Rhino club in Dallas. The driver of the truck, Eric Crutchfield, was drunk and has since pleaded guilty to manslaughter.

A Dallas civil jury on Tuesday awarded $4 million to the parents for mental anguish and $3.5 million for loss of companionship, along with about $3 million in other damages and expenses.

Michael Schmidt, an attorney for McKenzie’s parents, said the club served Crutchfield 10 or more drinks and shots on the night of McKenzie’s death. “This case basically is addressing a problem that we have, certainly in Dallas, of irresponsible establishments over-serving patrons and violating the law,” Schmidt said.

Schmidt said McKenzie was hit by Crutchfield’s truck while walking in the parking lot after 2 a.m. on March 17, 2011.

According to a police report, Crutchfield “had no idea he had run over” McKenzie. A blood test after the incident showed his blood-alcohol level was 0.18 percent, more than twice the legal limit.

For more:  http://www.azcentral.com/news/nationworld/free/20130220texas-monster-truck-death-lawsuit-verdict.html

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by | February 24, 2013 · 7:39 am

Hospitality Industry Insurance Risks: California Restaurant Owners Charged With “Felony Worker’s Compensation Fraud” For Failing To Insure Twelve Employees; Fines Totalling $18,000

“…an anonymous complaint (alleged) that the restaurant did not have workers’ comp insurance as required by law…following a visit to the restaurant, a civil citation (was issued) with penalties totaling $18,000 for failing workers comp fraudto insure their 12 employees…businesses not carrying valid workers’ compensation coverage are considered uninsured and face a “Stop Notice and Penalty Assessment” from the Labor Commissioner and fines of $1,500 per employee, up to $100,000. If an injury occurs, the fine increases to $10,000 per employee. A worker injured while working for an uninsured employer can sue for damages and the employer is presumed negligent in such cases…”

The owners of a restaurant in San Marcos, Calif. have been charged with felony counts of workers’ compensation fraud and forgery following a referral by the California Labor Commissioner Julie A. Su’s criminal investigation unit to the San Diego District Attorney’s Office.

The district attorney’s charges, filed in San Diego Superior Court on Jan. 29, allege that Rhythm City Grill owners John Fletcher Johnson and Annette Lucille Thomas each committed two felony counts of forgery of a workers comp insurance policy and a misdemeanor charge of conducting business without workers’ compe insurance. Johnson was also charged with an additional felony for submitting a false document to a government agency. He and Thomas were arraigned Feb. 14.

If convicted, Johnson and Thomas face up to 16 years in prison for the felony charges. The failure to secure workers’ comp insurance carries a misdemeanor charge of 1 year and a fine.

For more: http://www.insurancejournal.com/news/west/2013/02/19/281769.htm

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by | February 19, 2013 · 6:58 am

Hospitality Industry Crime Risks: New York Hotel Thieves “Smash Jewelry Cases” And Walk Out With Over $160,000 In Watches And Diamonds

“…the hotel lobby has 18 display cases…the suspects chose to smash the one filled with jewels from Jacob & Company, a designer favored by celebrities from Jay-Z to Jennifer Lopez to former New York Mayor Rudy Hotel CrimeGiuliani…(police) released images of the suspects from a surveillance camera late Sunday night, and confirmed that police are still looking for them. The men were last seen heading east on 57 Street after the heist…”

It was nearly 2 a.m. on Saturday when two men smashed a display case full of jewelry in the Four Seasons Hotel in midtown Manhattan. The men walked out of the hotel with two high-end wrist watches, a diamond chain and a pendant — together worth more than $160,000 — according to the New York Police Department. No one stopped them.

New York City hotels appear to be an easy target for criminals looking for a quick, and valuable, steal. Last year, a New Jersey man was sentenced to one-to-three years in prison for walking out of the Chambers Hotel in June 2011 with five paintings, each valued at $1,800, stuffed in a canvas tote bag. Two weeks later, the same man pilfered a $350,000 sketch by the highly regarded modern artist Fernand Leger from the Carlyle Hotel.

This is the first time a theft like this has occurred at The Four Seasons in its 20 years, according to Tiffani Cailor, a hotel spokeswoman.

“This is an unusual incident,” she said. “We are very concerned and upset over the theft.”

For more:  http://money.cnn.com/2013/02/18/news/jewelry-heist-four-seasons/

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by | February 18, 2013 · 7:09 am

Hospitality Industry Information Security Risks: Hotels, Restaurants And Retailers Accounted For 78% Of “Data Breaches By Cyber-Criminals” In 2012; “Weak Or Guessable Passwords” Is Most Common Vulnerability

“…Almost one-third of all victims had critical systems administered by a third party…Attackers had no trouble exploiting that weakness, with vulnerable remote-access systems accounting for the method of entry in 47 cybercrime in hotelspercent of the cases…in most cases, users – not software vulnerabilities – were to blame. Almost 90 percent of systems had weak or easily guessable passwords, with “Password1″ continuing to be the most common, according to Trustwave’s report…”

An analysis of breach data for 2012 found that retailers and the hospitality industry continued to command the most interest from cyber-criminals, accounting for 78 percent of the breaches documented by security services firm Trustwave.

The businesses are typically easy targets, having outsourced the administration of important servers and business data to firms that focus more on keeping the systems functioning than on security, says Christopher Pogue, director of digital forensics and incident response for Trustwave’s SpiderLabs.

“An integrator may have 1,000 customers and may do remote administration for all of them using, not 1,000 passwords, but maybe two or three,” Pogue said. “That leaves a vulnerability that can be exploited by attackers.”

For more:  http://www.techweekeurope.co.uk/news/retailer-hotel-crime-107589

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by | February 17, 2013 · 6:57 am

Hospitality Industry Legal Risks: Illinois Nightclub Sued By Man Stabbed In The Chest By Patron Who Was “Over-Served Alcohol”

“…(plaintiff) required emergency surgery after he was stabbed in the chest…the lawsuit says (he) suffered severe and permanent injuries and “will be hindered and prevented from attending to his usual duties and Alcohol Drink Responsiblyaffairs…the suit alleges that Olaska’s intoxication played a role in the stabbing. A restaurant employee was also injured in the fight…”

A man who was stabbed during a confrontation that cost a Naperville teacher his life has filed a lawsuit against the club where the clash happened. William Hayes III is suing Frankie’s Blue Room in Naperville and owner Riff Menza, claiming the bar over-served Daniel Olaska, who is awaiting trial on charges that he wounded Hayes and killed Shaun Wild in February 2012.

Authorities have said that Hayes had been teasing Olaska about drinking beer from a wine glass when Olsaka stabbed him with a folding knife he was carrying. Wild, a second-grade teacher at a Naperville school and a friend of Hayes’, was attempting to stop Olaska from leaving the bar when Olaska fatally stabbed him, according to police.

Hayes was a senior at nearby North Central College when the incident occurred. Wild was a 2010 graduate of the college. Both played for the school’s football team.

For more:  http://articles.chicagotribune.com/2013-02-15/news/chi-naperville-frankies-blue-room-stabbing-lawsuit-20130215_1_daniel-olaska-shaun-wild-naperville-bar

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