[vimeo https://vimeo.com/113722566 w=500&h=281]
Petra Risk Solutions’ Loss Control Manager, Matt Karp, offers a P3 Hospitality Risk Report – ‘Preventing Credit Card Fraud at Hotels’.Â
P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.
For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.
“In one scheme, Koger had been hired by Host, the country’s largest hotel owner, to sell two properties. Instead of selling to the highest bidders,
Koger allegedly sold the properties to straw buyers, who then immediately resold them to the interested buyers for a profit. Koger allegedly orchestrated a similar deal in which a straw buyer purchased promissory notes backing European hotels that Host was interested in and then resold them to Host at a higher price, pocketing the difference.”
Former hotel broker Robert T. Koger was sentenced Tuesday to 11 years in prison for orchestrating a series of fraudulent schemes resulting in more than $55 million in losses, according to the U.S. Attorney’s Office of the Eastern District of Virginia.
Koger, 48, served as president and sole owner of Molinaro Koger, a hotel real estate brokerage firm in Vienna. According to court records, charges against the 48-year-old were tied to various schemes, including a pair that cost Host Hotels & Resorts more than $22 million.
For more: http://wapo.st/1pNSO7V
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Filed under Crime, Hotel Industry, Risk Management
Comments Off on Hospitality Industry Insurance Risks: Workers’ Compensation Fraud Accounts For 25% Of All Insurance Fraud, Costing $5 Billion Annually
November 14, 2013 · 9:05 am“…(the defendant) used her job with the hotel’s management team to allow her husband — who owns two supply firms that outfitted the hotel with items like wallpaper, tiles and carpeting — to overbill for more supplies than were actually ordered….(she) was in charge of purchase 
orders for the hotel, and inspected guest rooms for damages to determine what needed replacing…the two went as far as concealing their relationship so as not to arouse suspicion from co-workers or auditors. The 22-page arrest affidavit also claims the couple produced fake bids so it appeared Jorge Maquilon’s companies, Decomax and Emporium Supplies, were the best supply source for the airport hotel. In some instances, the affidavit says, Jorge Maquilon ordered supplies — primarily wallpaper — that the hotel had four years’ worth of in storage…”
A husband and wife hired to oversee the purchase of supplies at the Miami International Airport Hotel were arrested Monday, accused of bilking Miami-Dade County out of $222,000 by jacking up prices and lying about the quantities of items purchased.
Jorge Isaac Maquilon and his wife, hotel employee Ivy Evans-Maquilon, both 54, were taken into custody by Miami-Dade police and charged with a single count of organized fraud and two counts of grand theft. Peruvian nationals, both were required to turn in their passports. They were behind bars at the Turner Guilford Knight Correctional Center late Monday afternoon, with bond set at $60,000 each.
Read more here: http://www.miamiherald.com/2013/07/15/3501584/arrests-made-in-overbilling-probe.html#storylink=cpy
Comments Off on Hospitality Industry Theft Risks: Florida Hotel Employee Arrested In “Fraudulent Overbilling” Scheme; Over $220,000 In Orders And Fake Bids
Filed under Crime, Labor Issues, Liability, Management And Ownership
“…(the ring leader) organized the scheme by paying the defendants, who were employees at the various establishments, to skim credit card information of paying customers using a small credit card reader provided to them by Woods and Washington. The employees swiped 
approximately 175 cards through the readers, enabling Woods to reproduce counterfeit credit cards and allowing Woods, Washington and Alex Houston to rack up thousands of dollars in charges…”
Sentences were handed down against seven defendants who illegally obtained personal banking information from patrons visiting Chicago area restaurants and attractions, including Wrigley Field and the Magnificent Mile’s RL Restaurant, according to Illinois Attorney General Lisa Madigan.
Defendants Joseph Woods, Britain E. Woods, Alex Houston, Jenette Farrar, Essence S. Houston, Kenyetta Davis and William Washington pled guilty and were sentenced for “skimming†personal banking information, which was used to make purchases of more than $200,000. The banking and credit card account information was stolen from customers who patronized Chicago area establishments, including Wrigley Field, RL Restaurant, a Chicago Taco Bell location and a McDonald’s restaurant in Berwyn.
Madigan said financial institutions with accounts that were compromised in the scheme include Chase, U.S. Bank, Citibank, Harris Bank, American Express, Bank of America and Fifth Third Bank. The banks assisted in the investigation and notified victims to secure their personal information.
Madigan said identity theft is a significant threat to Illinois consumers. Last year, more than 2,500 identity theft complaints were filed with her office’s Consumer Fraud Bureau. Consumers reported incidents of fraudulent charges on their existing accounts, thieves opening new accounts in their names (including credit card, utility and cell phone accounts) and instances of bank fraud, such as stolen checks or fraudulent withdrawals made to a victim’s bank account.
For more:Â http://www.claimsjournal.com/news/midwest/2013/04/18/227236.htm
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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Theft
In 2007 State Fund discovered Safehome Inc. was under reporting their employee payroll to avoid paying the proper premium. An audit was completed and indicated that Safehome Inc. had failed to pay the proper 
premiums for their workers’ compensation policy in the amount of $477,285. Additionally, State Fund determined the business was operating out of its classification, and related payroll was never reported to either State Fund or EDD, according to investigators.
“…the three types of most common workers’ comp fraud – injured worker fraud, provider fraud and premium fraud – haven’t changed much…”
Workers’ compensation fraud costs businesses $7.2 billion annually, roughly a fifth of all workers’ compensation payments, according to the National Insurance Crime Bureau.
In the past, it’s been challenging to prosecute workers’ compensation fraud, but recently passed legislation is making it easier for agencies like State Fund to work together to fight fraud. In June, as a result of a joint task force that included State Fund, more than 100 enforcement actions were taken against companies for failure to comply with state contracting, insurance and payroll requirements.
And earlier this year, State Fund partnered with other agencies on a fraud case that resulted in a conviction with restitution orders to both State Fund and the Employment Development Department.
For more:Â http://www.insurancejournal.com/news/west/2012/12/12/273777.htm
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Filed under Health, Injuries, Insurance, Labor Issues, Management And Ownership, Risk Management
“…(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: Â http://wsau.com/news/articles/2012/aug/10/hotel-worker-charged-in-credit-card-fraud-scheme/
Comments Off on Hospitality Industry Crime Risks: Wisconsin Hotel Employee Arrested And Charged With 65 Counts Of Credit Card Fraud And Identity Theft
Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership, Theft
“…He would apparently watch a guest leave then go into the room and claim he’s that person. Once in the room, police told WFTV Price would call the front desk and say he wanted to extend the stay, sometimes by 10 days…”
“…At the Portofino Bay Hotel at Universal, Price allegedly racked up nearly $9,000 in charges on an Ohio man’s credit card…”
A homeless man spent Friday night in the Orange County Jail. He was busted after police said he posed as a guest at lavish hotels and went on spending sprees that his victims paid for. David Price has been homeless for the past two years. On some nights he found shelter at the most lavish hotels in Orange County including The Ritz Carlton, Hard Rock Hotel and Loews Portofino Bay. He stayed at those hotels on other people’s dime.
A few days ago, police arrested Price after he finagled his way into a room at the Hard Rock Hotel that was previously occupied by a hotel worker. Security officers knew the employee had already left so they called the police. Officers apparently found items from other hotels in the room, including The Peabody on International Drive and the Four Seasons in Miami.
For more:Â http://www.wftv.com/news/news/local/investigators-homeless-man-arrested-stays-hotels-o/nPjTK/
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Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Theft
“…(three men)Â racked up roughly $15,000 in charges at several Disney hotels earlier this year and then left without paying before hotel staff ever realized what happened…Each man checked into a hotel with a legitimate 
credit card but then switched the room charges to prepaid debit cards that each had less than $10 in value…”
Falk, 36, told deputies they pulled off the scam by taking advantage of a loophole in the way Disney charges resort guests that he discovered during a legitimate vacation four years ago. Then they charged thousands in theme-park purchases to their rooms. Since the hotel limited charges to between $1,000 and $1,500 per room, the fraudulent purchases went undetected since they stayed below those amounts, they told deputies.
Nero, 39, told deputies they visited resort hotels seven times and reserved a total of 13 rooms from February to April. The three could still be living the high life had it not been for a vigilant cigar shop employee, a report says. The employee contacted authorities after Falk allegedly came into the shop several times to buy hundreds of dollars worth of pricey cigarettes.
The employee told police that Falk was spending more money than most of the other customers but what really made him suspicious was that Falk never seemed to care what brand of cigarettes he bought. According to the shop owner, most smokers are loyal to their brands.
Comments Off on Hospitality Industry Payment Fraud Risks: Florida Hotels Victims Of $15,000 Scam By Guests; Legitimate Credit Cards "Switched" To Prepaid Debit Cards
Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Theft, Training
“…(the man) was arrested on suspicion of using fraudulent credit card information at hotels and resorts in Laguna Beach, Costa Mesa and Dana Point…between Feb. 15 and April 12…”
“…it was common for Larson to give his hotel room to someone else before the end of his stay and move on to another hotel…”
Harold Eric Larson, 36, of Orange was arrested April 12 at the Costa Mesa Marriott, where detectives seized documents, hotel booking information and $32,000 worth of cashier’s checks from 39 different accounts.
Larson is facing charges of burglary, identity theft, grand theft and credit card fraud, said Laguna Beach police Sgt. Robert Rahaeuser.
According to court records, Larson pleaded not guilty Monday to 20 felony counts.
Laguna police first got a tip March 2 that Larson was committing fraud at a Laguna resort.
For more:Â http://www.dailypilot.com/tn-cpt-0420-larson-20120417,0,413551.story
Comments Off on Hospitality Industry Theft Risks: Man Arrested For Using Fraudulent Credit Card Information At California Hotels; Police Seize $32,000 Worth Of Cashier's Checks
Filed under Crime, Guest Issues, Insurance, Liability, Management And Ownership, Risk Management, Theft
