Category Archives: Crime

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

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Filed under Claims, Crime, Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Theft Risks: Wisconsin Restaurant Employee Arrested For "Cashing Two Unauthorized Businsess Checks" In His Name

“…the owner of Espana Restaurant and Bar discovered Johnson had cashed two unauthorized checks from the business in his name for $160 and $350…the checks were kept in a locked desk drawer in the basement of the business and were pre-signed to pay vendors…”

A 37-year-old Wauwatosa man is facing charges after he allegedly stole two checks from his employer and then cashed them in his name. Dana James Johnson was charged Thursday in Milwaukee County Circuit Court with one count of theft. If convicted, he faces up to nine months in prison and $10,000 in fines.

Officers then went to Community Financial, 4525 W. North Ave., where they found security video footage of Johnson coming into the bank and cashing the checks.

For more:  http://wauwatosa.patch.com/articles/tosa-man-charged-with-stealing-checks-from-a-milwaukee-restaurant

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Filed under Crime, Labor Issues, Liability, Management And Ownership, Theft, Uncategorized

Hospitality Industry Crime Risks: Pennsylvania Hotels Victimized By "Con Artist" Who Checked In, Charged Meals To Room And Then Left Without Paying

“…the man who passed as a hapless hotel guest was actually a skilled  con artist who claimed he had been robbed of his wallet to persuade  receptionists to let him have a room…he promised to pay the next day, offering a phony bank  statement as proof that he was good for it…”

Larry Raymond grew accustomed to the high life during his short stays in the  city’s finest hotels, where he dined in restaurants, patronized gift shops and  enjoyed a cup of Starbucks coffee now and then. He ran up hundreds of dollars in tabs — police said he spent more than  $1,500 at the Uptown Marriott — and had it all billed to his room.

But Mr. Raymond never settled up. Mr. Raymond’s lavish run came to an end late Wednesday when police arrested  him in Room 216 of the Cambria Suites in Uptown less than an hour after he  checked in. He told a manager his wallet and credit card had been stolen.

Mr. Raymond, 55, who has no permanent address, spent Thursday in the  Allegheny County Jail. Court records show he was unable to post $50,000  bail.

“He’s a nationwide con artist,” said Detective Jack Mook of the city’s Zone 2  police station, who began investigating Mr. Raymond’s suspicious stay in  Pittsburgh last week when the security director of the Omni William Penn  Downtown told him about a guest who claimed his wallet was stolen and skipped  out on a $753 bill.

Read more: http://www.post-gazette.com/stories/local/neighborhoods-city/police-arrest-man-who-skipped-several-pittsburgh-hotel-bills-651267/#ixzz258KJUWtK

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

Hospitality Industry Legal Risks: Wisconsin Restaurant Owners Sued For $550,000 For "Negligence" In Alcohol-Related Shooting Death Of Patron

“… the defendants (are accused) of violating the Illinois Wrongful Death Act… were negligent for failing to take reasonable actions to protect customers, allowing a patron with weapons to be on the premises and allowing people inside the restaurant who were “quarrelsome, disorderly, hostile and vicious.”

The family says they have lost their means of support while also suffering a loss of society, consortium, guidance and companionship. The Ortizes ask to be awarded more than $550,000 in damages plus courts costs.

A Pontoon Beach restaurant is accused of causing the death of a Granite City man who was shot and killed there last year. Brenda Ortiz, as special administrator of the estate of Jesus Ortiz-Flores, and Luis F. Ortiz filed a lawsuit Aug. 15 in Madison County Circuit Court against La Mexicana Inc., also known as La Mexicana Restaurant Inc., Orlando Gudino, Berzain Gudino and Oscar Guidno. Choteau Properties Inc. is also listed as a defendant.

The 37-page lawsuit stems from a shooting that happened at La Mexicana on Chouteau Trace Parkway in Pontoon Beach on August 19, 2011, the suit states. According to statements made by police to media immediately following the incident, Jesus Ortiz-Flores, 20, was shot once in the head in the parking lot of the La Mexicaca restaurant and died immediately. Plaintiff Luis Ortiz, who was 18 at the time, was allegedly shot multiple times during the incident but survived.

Brenda Ortiz and Luis Ortiz accuse La Mexicana restauraunt, the owners and managers and Choteau Properties, the owner of the building, of directly contributing to the shootings. The Ortizes contend the restaurant served alcohol to the alleged shooter, Fernando Gallegos, 17, allowing him to become intoxicated and then attack Ortiz-Flores, causing his death. They say the defendants’ actions constitute a violation of the Illinois Dram Shop Act.

For more:  http://www.madisonrecord.com/news/246266-la-mexicana-restaurant-in-pontoon-beach-sued-over-shooting-death

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Filed under Crime, Injuries, Insurance, Liability, Management And Ownership

Hospitality Industry Payment Fraud Risks: Woman Arrested After Using Stolen Credit Card With "Illegitimate Authorization Code" To Scam Florida Hotels

Police believe the alleged Discover employee was actually Betancourt’s accomplice, who gave an illegitimate code to the hotel clerk. According to investigators, codes are sold on the black market to help crooks override the system.

According to authorities, 53-year-old Debra Betancourt used an old, stolen Discover credit card linked to a closed account and a fake Arizona state ID to scam a number of hotels on Miami Beach. Police say at 11:30 p.m. Monday, Betancourt went to the Alexander Hotel on Collins Avenue. She informed a hotel employee that she made an online reservation with the stolen Discover card.

However, Betancourt’s card was declined for a charge of $4,100. Betancourt got on the phone, police said, and called someone who she said worked at Discover. The alleged employee gave the hotel clerk an authorization number, but the hotel would not complete the transaction.

Less than an hour later, at 12:15 a.m., Betancourt headed south and tried the scam again at the Cadet Hotel on James Avenue. This time, Betancourt got lucky: Her card was approved for 10 nights for a grand total of $10,105. Another hour passed, and the 53-year-old headed even further south to the Anglers Hotel on Washington Avenue, where she tried to pull the scam for the third time.

Betancourt once again ran into problems, and called the mystery Discover employee. However, the card was declined and the hotel manager contacted police. According to authorities, Betancourt kicked the manager in the groin and took off, but officers caught up with Betancourt and arrested her.

Read more: http://www.wsvn.com/news/articles/local/21008278197692/accused-hotel-scam-artist-arrested/#ixzz23ieeFMyM

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

Hospitality Industry Security Risks: Louisiana Hotels' Guest Rooms Burglarized By Thieves Who "Checked For Unlocked Doors"; Suspects Walked Out With Laptops And Electronics

“…(suspects were) walking in the hotel, walking out with the victim’s property…laptops, electronics, iPods, and iPads…cell phones, bags of clothing, jewelry…in some cases thieves got into rooms by checking for unlocked doors…”

After arresting two suspects in a string of downtown hotel burglaries, New Orleans Police confiscated loads of property. Police say rooms at several hotels in the downtown area were burglarized in early July. It was later determined to be the work of the same set of crooks.

“I noticed my door in my room even if I just walk out it doesn’t close,” one hotel guest said. Carroll says an anonymous tip from the public led detectives to arrest this modern day Bonnie and Clyde.

A search warrant executed at her home turned up loads of evidence.

For more:  http://www.abc26.com/news/local/wgno-property-stolen-from-hotels-returned,0,6918670.story

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

Hospitality Industry Crime Risks: Wisconsin Hotel Employee Arrested And Charged With 65 Counts Of Credit Card Fraud And Identity Theft

“…(the former employee) used customer credit card numbers to pay tuition and insurance bills. An alert customer notified police and an investigation led to his arrest…”

 A 19-year-old who worked at a hotel in Medford is facing 65 credit card theft charges. He worked at the AmericInn until late last year, and was accused of using the card numbers that hotel guests had put on-file to cover room-expenses. Nicholas Johnson is facing 59 counts of identity theft, and six counts of fraudulently using a credit card for more than $10,000. He’ll be back in court on August 14th.

Police began looking for things in common among several reports of fake credit card charges. They focused on Johnson when several of the card-holders who’d been ripped off had stayed at the same hotel. Johnson hasn’t worked there since late last year.

For more:  http://wsau.com/news/articles/2012/aug/10/hotel-worker-charged-in-credit-card-fraud-scheme/

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Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership, Theft

Hospitality Industry Theft Risks: Former Pennsylvania Hotel Manager Pleads Guilty To Stealing $52,000 During Two Year Period

He was charged with stealing from the Wingate Inn in Unity Township from April 2007 to August 2009 — which he managed while also serving as mayor — before he left to buy a competing business, the Mountain View Inn.

The former mayor of Latrobe has pleaded guilty to misdemeanor charges that he stole about $52,000 from hotel restaurant where he worked and will serve two years’ probation after paying back the money.

Forty-two-year-old Thomas Marflak was charged by Westmoreland County detectives in September 2010, a few months after finishing a four-year term as the first Republican mayor in Latrobe since 1965.

Marflak has claimed the money he spent using hotel credit cards was for legitimate expenses, not his own use, but pleaded guilty Friday to avoid trial and possible prison time on felony charges.

Read more: http://www.sfgate.com/news/article/Ex-mayor-pleads-guilty-to-theft-from-W-Pa-hotel-3765751.php#ixzz22s3DAuN6

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Filed under Crime, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: South Carolina Restaurant Group Pays $1.1 Million To Settle "Alcohol-Related Death" Lawsuit Caused By Assistant Manager

“…the 32-year-old (defendant) has just left his job as an assistant manager at Husk restaurant last December when he rear-ended a car being driven by 32-year-old Quentin Miller on the Ravenel Bridge. Miller died in the fiery wreck, and police say Burnell’s blood-alcohol level was 0.24 percent…”

The parent company of a Charleston restaurant will pay $1.1 million to the family of a man killed in a drunken driving crash that authorities say was caused by one of the restaurant’s employees.

The Post and Courier of Charleston reports the settlement calls for Miller’s parents to get $518,000, Miller’s common-law wife to get $91,500 and the remaining $490,000 to go to attorneys’ fees and costs. The settlement should be finalized at a hearing later this week.

Read more here: http://www.charlotteobserver.com/2012/08/05/3432731/charleston-restaurant-to-pay-1m.html#storylink=cpy

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Filed under Crime, Injuries, Insurance, Labor Issues, Liability, Management And Ownership

Hospitality Industry Employee Risks: Kentucky Restaurant Employee Arrested For "Falsely Reporting A Crime" And Stealing Over $500

“…police discovered Dyer took the money and made up the story to cover up the theft…Police arrested Dyer and charged her with falsely reporting an incident and theft by unlawful taking over $500 – a felony charge…”

A local restaurant employee who told police she was robbed at gunpoint Thursday night at work has been arrested for theft and falsely reporting a crime. According to a statement released Friday by Frankfort Police, 28-year-old Amanda Dyer, of Frankfort, reported around 11 p.m. Thursday that she was robbed at gunpoint by a black male while working at the Sonic restaurant on Louisville Road.

Dyer told investigators the man pointed a gun at her when she went outside to take an order, said Maj. Fred Deaton. She told police he threatened to kill her and other customers if she didn’t give him money, Deaton said.

Deaton said police interviewed other employees and customers and found “none of them said anything that helped corroborate her story.”

Dyer was lodged in Franklin County Regional Jail but has since been released.

For more:  http://www.state-journal.com/local%20news/2012/08/03/sonic-employee-accuses-black-man-of-theft

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