Category Archives: Crime

Hospitality Industry Theft Risks: Hawaii Hotel Employee Arrested For Stealing $11,000 Worth Of Jewelry And Goods From Luggage In Storage Room

“…a review of video surveillance of the storage room revealed that Bueno allegedly entered into the storage room through the service elevator, picked up and concealed the bags within his work cart and exited the hotel securitystorage room…a few minutes later shows (him) allegedly reentering the storage room and placing the bags back on a bellman cart, then exiting again through the service elevator…”

An employee from a hotel in Wailea was arrested on Monday on suspicion of theft after a couple visiting from Maryville, MI, reported more than $11,000 in jewelry and other goods missing from their bags after check-in, police said. Maui police arrested resort houseman, John Bueno for alleged second degree theft in connection with the incident.

According to police reports, the couple arrived at the hotel at around 1:20 p.m. on Monday Feb. 11, checked their bags with a bellman, and proceeded to the pool area to wait until their room was ready.

A few minutes later, police say the female visitor returned to the bell desk and inquired about one of the bags to retrieve an item from within. A check of the storage room found all of their bags missing, and a search of the area by security personnel and hotel managers turned up with negative results.

A few minutes later, another check of the storage room revealed that the bags were returned; however, upon checking each bag, it was learned that various pieces of jewelry and a camera totaling $ 11,100 were missing, said Maui Police Lt. Wayne Ibarra.

Bueno was placed under arrest later that afternoon, and posted bail, which was set at $1,000. He is scheduled to appear in court at 10:30 a.m. on March 14, 2013.

For more:  http://mauinow.com/2013/02/14/wailea-hotel-worker-arrested-in-theft-case/

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Filed under Crime, Guest Issues, Labor Issues, Liability, Risk Management, Theft

Hospitality Industry Security Risks: Hotels Should Employ “Motherboard Fix” To Make Electronic Door Locks Secure From Hacking And Break-In

“It’s the older Onity locks that are subject to hacking,” Seiders said. “With the old locks, which were the best at the time, the encryption code that authorizes the lock to open has been installed on all of those individual Onity Electronic Locklocks. The hacking device, when it’s plugged into the lock, fools the lock into thinking it’s an authorized programmer. The newer locks don’t have the encryption code in each one; the code is issued at the front desk.”

Following a robbery at a Houston hotel in which thieves exploited security flaws in Onity locks first revealed at the Black Hat conference in July, Hotel Management spoke with Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, for tips on how hoteliers can keep their rooms secure.

“[Onity] immediately started offering the caps and screens to block the port that causes the vulnerability, but I don’t think that’s a very valuable option, because if you block these terminal ports and you have an emergency in the room and the lock has failed, you have to be able to plug in the portable programmer or you’ll have liability issues,” Seiders said. “The thing to take advantage of now is the motherboard switch out. If you mail it in within a reasonable amount of time they’ll replace it for free. The motherboard fix, that’s what these hotels should be doing.”

While Seiders noted that the recession has meant less money available for full-time security staff and new equipment like cameras, he emphasized the importance of staff training in hotel security. “My advice is to go walk the halls and if you see a person standing in the hallway go and look at him for 60 seconds. He’ll either go to a room, or, if not, approach him and say ‘what’s up,’ find out if you can help him. Customer service is the best security.”

Seiders also pointed out that the newer models are not as vulnerable to hacking.

In a statement from Onity, the company said, “Over the next several weeks, we will ensure all hotel properties in our database receive the mechanical solution. These mechanical caps and security screws block physical access to the lock ports that hackers use to illegally break into hotel rooms. The mechanical solution remains free of charge to customers. Technical solutions vary depending on the age, model and deployment of locks at properties.”

For more: http://www.hotelmanagement.net/operations-management/keep-your-rooms-secure-from-door-lock-hackers

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Filed under Crime, Guest Issues, Liability, Maintenance, Management And Ownership, Risk Management, Theft

Hospitality Industry Safety Risks: California Hotel Explosion And Fire Caused By “Illicit Drug-Making Operation” In Guest Room; Walls “Blown Out” And Property Evacuated

“…all guests were evacuated and it took firefighters about 35 minutes to fully contain the flames which had reached into the third story and the attic of the hotel…Because of the drug-making substances that had caused Hotel Explosionthe hotel explosion, a hazardous-materials crew and the U.S. Drug Enforcement Administration were called in to investigate the illegal drug-making operation…”

An apparent drug-making operation in a hotel room caused a hotel explosion in San Diego on Wednesday shortly after 11 a.m. The explosion which happened in one of the hotel rooms blew out several windows and three walls, reported San Diego’s 10News on Jan. 30, 2013.

“An explosion apparently caused by an illicit drug-making process blew out walls and windows at a Midway-area hotel Wednesday and set part of it ablaze, leaving a young man gravely burned and two other people less severely hurt, authorities reported.”

The hotel explosion occurred in a hotel guest room on the second floor at the three-story Heritage Inn on Channel Way, just south of San Diego’s Interstate 8.

The man who was gravely injured during the hotel explosion had apparently lit a cigarette while using a butane spray can to try to extract hashish oil from marijuana. The flame from his lighter ignited the chemical fumes and caused them to detonate powerfully. The man who is in his early 20s suffered life-threatening burns.

Hash oil is made by packing finely ground stems and leaves of marijuana plants in a pipe and pouring butane through it. The liquid typically is then cooked on a stove to separate the butane. Hash oil averages about 15 percent THC, the chief intoxicant in marijuana. A drop or two is about as potent as a marijuana cigarette.

For more:  http://www.examiner.com/article/illegal-drug-making-hotel-room-causes-hotel-explosion-san-diego

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Filed under Crime, Fire, Guest Issues, Injuries, Insurance, Management And Ownership, Risk Management

Hospitality Industry Theft Risks: Pennsylvania Restaurant Manager Charged With Stealing Over $160,000; Made “Unauthorized ATM Withdrawals, Credit Card Purchases”

“…a certified public accountant’s review found that (he) made a string of unauthorized ATM withdrawals, unauthorized credit card purchases and unauthorized check card purchases totaling $163,601 from the employee theftbusiness accounts of Cosmopolitan…in addition to dinner cruises and visits to a strip club, (he) allegedly spent the money on household items at a retail store…”

A former general manager of Cosmopolitan in Allentown allegedly stole $163,601 from the restaurant and spent it on things like dinner cruises and visits to a strip club.

Cosmopolitan opened in October 2010. Fortunato was hired in September 2010 and promoted to general manager about a month later, District Attorney Jim Martin’s office said today in announcing the charges.

Fortunato’s responsibilities included overseeing the daily operations of the restaurant, handling employee payroll, paying bills to suppliers and collecting receipts for the business.

Fortunato also was given check-signing authority for the restaurant’s various bank accounts and ATM/debit card account at Wells Fargo Bank, a Visa card, an American Express account and access to cash receipts at the restaurant, Martin’s office said.

His responsibilities included using any of the accounts, but only for operations of the restaurant, according to the district attorney’s office.

Last June, Cosmopolitan co-owner Myron Haydt was reviewing the restaurant’s financial records and found a series of suspected unauthorized purchases by Fortunato, according to the statement.

For more: http://www.lehighvalleylive.com/allentown/index.ssf/2013/01/former_manager_of_allentowns_c.html

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Hospitality Industry Business Risks: Texas Hotel Loses Reservations After Gas Line Damaged By Woman In Stolen Vehicle; Thousands Of Dollars Lost As Property Was A “Crime Scene”

“…the gas company had to shut the gas off and hotel hot water boilers run on gas…(hotel) was without hot water for almost 12 hours and as a result lost 26 reservations…the woman who ran over the gas main will have business interruption insuranceto pay (hotel) back in restitution fees that could be assessed to her in court but that doesn’t mean it’s feasible…”

An Amarillo hotel is out thousands of dollars after it’s forced to shut off it’s gas while police investigate a crime scene on the property. Saturday, the Holiday Inn near I-40 and Ross had to shut off its gas after its gas main was run over by a woman who stole a van.

Normally, a business might turn to its insurance company for damages like these, but not in this case.

“According to our insurance company there was no liability for them because of the fact that it was a crime scene,” added Muse. “It if had been a gas company issue, a faulty main or something, then it would’ve been something we could go to out insurance company for.

“Most of the time, in order to collect stuff, they’ve got to be have the ability to pay for it. With fines, court costs, all of that, restitution, it’s a matter of do they have the ability to pay. So, assessing and collecting are two different things.”

Even if the defendant is able to pay, if they serve any time, probation or parole, it could be years before the person they owe sees any of that money.

“So, even if it’s assessed and could be collected, they could pay, it could be a long time before they actually pay it?” NewsChannel Ten asked Sims. “Correct,” he answered. “And, like I said, probation is like an interest free loan.”

“It looks like we’re just going to be eating the loss,” said Muse.

Muse says he’s fortunate his hotel is older and more established, otherwise this blow to the business’ wallet would’ve hurt them a lot worse.

For more:  http://www.newschannel10.com/story/20609001/crime-scene-investigation-costs-amarillo-hotel

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Hospitality Industry Crime Risks: Arkansas Hotel General Manager Arrested For “Promoting Prostitution At Property”; Rented Rooms Hourly To Accommodate Sex For Money

“…a serious crime because it’s such a spider web into other facets, robberies stem from this, assaults, rapes…Police say the activity not only violates state statutes regarding prostitution but violates the city’s Hotel Prostitution ringssexually oriented business ordinances…”

The general manager and employee of a Fort Smith hotel were arrested Tuesday (Jan. 15) for promoting prostitution in the business, according to police. A six-month investigation revealed general manager John Lee Rohlin, 42, and his employee Jonathan Richard Bean, 28, regularly rented rooms at the Season’s Inn on south Waldron to individuals by the hour to accommodate men and women engaging in sex for money, a police report states.

The arrests stunned guests Thursday afternoon. “It will be scary because it’s something illegal you know,” said Monsour Alhussain, a hotel guest. A confidential informant tipped off the police about the prostitution in June, according to police.

Both men were booked into the Sebastian County Detention Center and released on $1,500 bonds.

For more:  http://5newsonline.com/2013/01/17/hotel-employees-arrested-on-promoting-prostitution-charge/

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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership

Hospitality Industry Security Risks: Illinois Hotel And Restaurant Sued For “Negligence” After Guest Attacked By Man With Knife In Restroom; “Allowed Unauthorized Access To Property”

“…The lawsuit claims the hotel and restaurant at 909 N. Michigan Avenue were negligent when they allowed Restaurant Crime“unauthorized persons to gain access to their hotel, restaurant and restroom facilities” and didn’t perform proper security checks…”

An Oak Brook doctor who was stabbed in the neck and face during an attempted holdup at a Gold Coast restaurant in November is suing his alleged attacker along with the restaurant and hotel that houses it. Mir Shah says he was violently attacked and stabbed several times by Jimmy Harris in the bathroom of the Westin’s The Grill on the Alley on Nov. 17, according to a lawsuit filed Monday in Cook County Circuit Court. The restaurant’s bartender was also injured when he chased Harris, who cut him with a knife, police said.

Harris, who also goes by the name Jimmie Harris, had been freed from prison eight days prior to the attack. He has at least 60 arrests and nine felony convictions dating to the late 1970s, according to Chicago police, state and court records.

Shah, an oncologist, was out to dinner with his family that night after attending the Lights Festival along the Magnificent Mile. While in the bathroom, Harris approached Shah and announced a robbery before stabbing the doctor in the right side of his neck and face, prosecutors said. Shah is now disfigured and disabled, according to the suit.

For more:  http://www.chicagotribune.com/news/local/breaking/chi-doctor-stabbed-after-mag-mile-lights-festival-sues-suspect-20130107,0,4498714.story

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Hospitality Industry Crime Risks: Washington Hotel Room Used By “Major Identity Theft And Forgery Ring”; Police Seize Laptops, Lamination Machine And Bags Of Stolen Mail

“These labs tend to be mobile…they go from hotel to hotel…the room contained a computer, two laptops, laminating paper, card stock, check stock and a hot laminator machine along with identification, checks and identity theftbags of mail that had been stolen. Also seized were more than 100 licenses and other IDs, roughly 20 hard drives and numerous other media storage devices, such as thumb drives and memory chips.

Police and U.S. Secret Service agents believe they have taken down a major identity theft and forgery ring involving at least a dozen suspects and more than 100 victims. The number of victims could grow as experts analyze computer hard drives and video surveillance footage from businesses where the suspects tried to get money. As of Friday evening, authorities estimated more than $45,000 had been stolen, but said that amount is likely to grow.

Evidence is being examined at the Secret Service’s Electronic Crimes Task Force lab in Seattle. Many of the victims — both individuals and businesses — are from Everett, but the center for the operation was traced to a hotel room in Shoreline.

That’s where police and the Secret Service found what amounted to a ID-theft factory Thursday.

For more:  http://heraldnet.com/article/20130105/NEWS01/701059947

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Hospitality Industry Theft Risks: Chicago Restaurant Guests Warned About Thieves Targeting Cell Phones

“…The thieves put a flyer on top of the customers’ cell phones. The men pick up the flyer and the cell phone as Cell Phone Theft (2)they leave. They know they can turn these cell phones over to a pawn shop and get a couple hundred bucks.”

Chicago police are warning people about a cell phone theft ring that is hitting downtown restaurants. Customers at restaurants on Michigan, Fairbanks, Wabash and Ontario have been robbed in the last four days.

Police say a group of young men approach diners to say that they are raising money for a basketball team. “I was eating by myself tonight and scrolling on the phone and didn’t even think that someone might come and swipe it,” diner Todd Ganz said.

The team of thieves is operating in three different areas, police say: in the 400-block of East Ontario, the 600-block of North Fairbanks, and in the Loop along Michigan Avenue and the 100-block of North Wabash.

For more:  http://abclocal.go.com/wls/story?section=news/local&id=8941275

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Hospitality Industry Theft Risks: California Hotel Guest Arrested For Using Stolen Credit Card To Pay For Room; Used Laptop On Open Wi-Fi Network To Steal Account Information

“…(suspect) allegedly rented a room at the Montage by using a stolen credit card. The fraud went undiscovered for two days while Larson accrued a $2,134 tab, but he disappeared from the resort prior to the arrival of cyber securitypolice…he used a laptop to collect credit card information from people making purchases or checking their accounts…”

An admitted identity thief, apparently expert at stealing credit card account information over open wi-fi networks, was arrested last week after skipping out on a $2,134 bill at Montage Laguna Beach, police said. Police tracked Harold Eric Larson, 37, to his hometown of Orange and arrested him on Thursday, Dec. 27, on several theft related charges, Capt. Jason Kravetz said in a statement. He is accused of using stolen credit card numbers to rent hotel rooms to for himself and friends in Laguna Beach, Newport Beach and Costa Mesa, Kravetz said.

Coincidentally, on Dec. 26 police received a complaint about guests using drugs in a room at Laguna Cliffs Inn and arrested Edward Richard York, 40, of Tustin, allegedly for possessing methamphetamine and marijuana, Sgt. Louise Callus said. Officers learned the room was rented with a stolen credit card number provided by Larson, said Kravetz.

Larson was previously arrested by Laguna police last April on 23 felony counts of fraud and theft after he was caught using stolen credit card information to rent hotel rooms.  He pled guilty to the charges and was sentenced to three years probation, one year in jail and restitution.

For more:  http://www.lagunabeachindependent.com/2013/01/02/identity-thief-held-hotel-scam/

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