The KPMG Australian survey has revealed that bosses are committing large scale frauds click here . I don't suppose that's a suprise to many given the recent media here in NZ.

The problem with a boss committing fraud is that the entire company is in jeapordy of collapse and we have been involved in several such cases where good keen workers have lost their jobs because of greedy dishonest bosses.

Actually the question is, what can a staffer do if they believe the boss has their nose in the trough ?? They might try the whistleblower approach and contact the owners direct or they could contact "Report a Crime" click here or indeed call us and we wil see what can be done.

The quicker action is taken the sooner the thieving can stop and jobs might be saved.

Slightly changed but a true story this. 

Being a PI and catching crooks stealing product gives you a big high. But sometimes you have to go the extra mile to get a result for your client.

This job was typical, the client suspected a staffer was stealing product on the late shift, after all the management had left for the night sharp at 5pm. My task was simply to conduct observations and see if any product went astray.

One issue was the lack of cover to conduct surveillance. There was no chance of installing covert cameras and nowhere to park the surveillance van. It had to be a "hard lay" job. Being a dilligent PI and having watched every episode of "Man versus Wild" a cunning plan was created. So on the Sunday afternoon, in the paddock just opposite, a new bush appeared, brought there by me, having cut the same down from another location. The bush gave a good view across the road and into the loading bay but we only had a few days until the greenery would wilt and die.

That Monday I crept into the Obs position equipped with camera, RT and dictaphone. My mate was parked up the road ready to follow anyone who might remove product.

About an hour into the task, it had just gotten dark, when a Holden Commodore appeared on the scene, circled around before stopping next to my spot. The driver got out looked around and then walked straight towards where I was lying.

What to do ? Jump up ! Run away ! Had we been sprung ? All these things flash into your mind in an instant. Nope, I just curled into a ball and waited for whatever might happen. Next thing I know a torrent of P is soaking my back and lasts for what seems ages but is actually less than a minute. Happy, the guy shakes himself off and then drives to the loading bay where he is seen stealing as suspected. He was stopped up the road by my mate. He and the staffer were interviewed and admitted the offending.

So there you have it. P only ends up getting you in trouble.

Ron McQuilter

Hiring a PI is one way to obtain information, but if you are looking to "check yourself out" there are a number of sites that can help. They are easy to use and very helpful as well.

The two main issues people want to know are whats on record in respect to their criminal and/or credit records.

If you want a copy of your own Criminal History click here Note: you need to send the original signed request document, not a copy and it takes about 7 weeks for the reply.

If you want to check out your own credit record click here Note: especially good to see just who has been checking on you.

There are a lot of other checks you can do yourself. Most just require a simple letter signed by you asking for a copy of what's on record, pursuant to The Privacy Act 1993. You don't need to be too technical as the agencies will usually appreciate you are doing it yourself. Sending a copy (not the original) of photo ID id a good practice.

Of course, you can engage a PI and again most are reponsive to what you are trying to achieve click here.

Cheers, Ron McQuilter

How good is it to see the Police have created a new Missing Persons Website.

As someone who has been involved in many missing persons investigations, I am all too familiar with the trauma for the families of loved one who just vanish without a trace.

Good on you NZ Police for this proactive move see the site

Ron McQuilter

After a naming contest in 1937, Hormel Foods came up with the name SPAM (SPiced hAM). The ingredient ? well here goes: Chopped pork shoulder, ham meat, sugar, salt, water, and sodium nitrite, a color preservative, often dubbed "mystery meat".

I fondly recall as a boy raised in a poor area of Glasgow thinking how lucky I was when my mum put SPAM as opposed to just JAM on my bread. If you had SPAM people in our scheme thought your were a snob.

How times have changed !! Who can say they like SPAM now or feel priviledged to receive SPAM. The modern day electronic version is still a mix of ingredients and could now be dubbed "Mystery mail".

I despise, but can understand that there are professional SPAMMERS, typically trolling the Web for your email, then sending out their rubbish. I suppose in business and using the Web to advertise, it's now just another cost to ensure you have good firewall protection and mailmarshall software.

What I hate though are those people that steal client lists or send me an email or newsletter when I have not asked them (the sender of the SPAM) to do so. There are rules to prevent this and complaints can be made, the problem is it's just easier to delete. Even trying to "unsubscribe" can be a nightmare.

Sorry Mum I don't like SPAM anymore.

It was interesting to hear the story on Close Up tonight about door to door salesperson selling vacuum cleaners.

For the past 30 years we have investigated these types of sales people and fondly recall filming a salesperson at a relative's house in Tauranga in 1990.

Hard sell, overpriced, no refunds...It all sounds horrible and it's hard to believe that this practice still exists today.

Don't sign anything without first getting independent advice. If they insist, tell them you want your friendly PI to check it out first. However, be careful about the dust getting in your eyes when they take off at a hundred miles an hour. 

A lot has been written today about mining with the Government taking on board the public opinion. At Paragon, we have been mining for years and whilst we do not seek coal or gold, we do find nuggets of information  in our quest to catch fraudsters or thieves in the workplace.

Data Mining is a modern tactic using clever computer processes to establish commonalities in an organisation's financial records. Some companies even use data mining to assist with sales, client trends and other management processes.

Data mining is not solely the domain of large entities. Small businesses are able to link sales, account and bank information simply, quickly and importantly it is no longer cost prohibitive due to the latest programmes.

If you would like to hear more, or talk to one of our "miners", just send us an email or call.

For some years now Paragon has been sending out a monthly newsletter to over 2100 persons (currently). Paragon respects and values our recipients valuable time, and has a quick and easy tab for our recipients to unsubscribe. The Department of Internal Affairs website says Spam is the generic term for the electronic commercial 'junk mail' you receive without having requested it. This includes unwanted messages sent to people's email accounts or mobile phones.

The negative effects of spam are significant and far-reaching. Current estimates suggest that around 120 billion spam messages are sent every day. These emails clog up the Internet, disrupt email delivery, reduce business productivity, raise Internet access fees, irritate recipients and erode people's confidence in using email.

The Unsolicited Electronic Messages Act 2007 came into effect on 5 September 2007. The Act defines spam as 'unsolicited commercial electronic messages'.

One of the main purposes of the Act is to Prohibit unsolicited commercial electronic messages (spam) with a New Zealand link (i.e. messages sent to, from or within New Zealand) Read More  

Paragon will not send out spam emails. If you wish to receive our Newsletter, please register on this site. Register here
 

A few true snippets from “The good old days” of PI work

Then: Spending three 16 hr days, in the cavity between the 1st and 2nd floors of George Courts Store, K Road, Auckland peering through a hole and making notes of staff steal from the till.

Now: Install a covert camera, watch it from you desk on-line

Then: Driving to Lorne St, City, parking and spending hours just to establish the directors of a company.

Now: Login into Coys.co.nz and do the same in 60 seconds

Then: Chop down a bush, drag it to your surveillance location, hide underneath, get pee’d on by a passing motorist and make wet notes of occurrences.

Now: Park your surveillance van, leave it and return later to uplift the footage.

Then: Follow a suspect truck driver stealing product at slow speeds and around various commercial premises to see if they make unauthorized deliveries.

Now: Install a snitch tracking device and watch from your desk.

Then: Be excited about starting a “database” on a Commodore 64 “computer” with 64mb of memory

Now: Operate a fully integrated client login management system with investigation updates in real time

It all started with a casual conversation over a beer about honesty. My mate was boasting how his long serving staff was totally on his side. He explained that just the other day a client paid by Bank Cheque made out to "cash" and how he would never had known about the payment had it not been pointed out to him. When I asked how often people paid by this method it soon became apparent that in fact something was odd. The next morning I was waiting in his office as the staff arrived. The first person in was the receptionist who receipted the payment. By the time the manager arrived the receptionist has told me she had obtained the Bank Cheque at lunch time to make up for a previous cash payment only after a client had queried her account. It transpired that between the manager and receptionist they had been systematically stealing some cash payments for years. It ain’t pleasant seeing a grown man cry like a baby in a large city office, his entire trust having been destroyed after being robbed blind by people he regarded as family even to the point of helping them buy their first home.

In another case, a staffer caught stealing over $100,000 from their employer when interviewed dobbed in the boss who was also charged and convicted.

And, in more than one occasion investigations for overseas companies have resulted in their New Zealand managers who raised the matter in the first place being caught in the investigation net.

What’s going on here you might ask? well there is indeed one common theme and in every case, the bosses simply reaped what they had sown.

We have all heard the expression a "family business" and to my mind starting a business can be just like starting a family. You look forward to many years of happiness raising your child to follow your example ever hopeful they will grow to become successful in everything they attempt. Good examples and sound principles generally produce success, poor examples and bad habits open the door to failure or in business - theft.

In the cases above, the staff had repeatedly watched their employers doing "cashies", "back-hand deals with suppliers" and "raiding the petty cash". The staff were all quite able, in their minds, to justify that they were only doing what the employer would have done had the roles been reversed.

The point here is that as leader, your integrity is paramount. How can you expect staff to remain honest when they see you tickling the till?

To test this point, I asked my local café owner about his methods. We agreed that from that date when he wanted a coffee or offered to shout his PI mate a lunch, then he should make a point of asking an employee to process the transaction and that he must pay by EFTPOS or cash. Less than a week later he told me the change in profitability was immediate. His employee’s immediately stopped asking to give their family and friends free coffees or discounted lunches, etc. Even the kitchen staff started accounting for their diet cokes.

It really doesn’t matter the size of the organisation, the same rules must always apply. Remember the old 10-80-10 rule "10% of people are totally honest, 80% of people need to be kept honest and the other 10% will rob you blind" In business this means you should do two things: 1. Have as little as possible to do with the last 10% and 2. Work on the middle 80%. If only it were so easy.

Which brings me on to the obvious question, what do you do when it turns to custard and irrespective of standards staff do decide to steal.

Employment law is a minefield when it comes to dishonest or problem employees. Employers need to be "justifiably correct" and have followed the "proper procedure" when conducting an investigation otherwise they will end up having to dip into their profits to pay for their lack of proper process.

The use of covert cameras in the workplace should be carefully considered beforehand. The Privacy Commissioners "Case Note 32277" deals with a matter where a covert camera was installed in a work changing room. Certain strict conditions were applied and the offender was caught breaking into the lockers and prosecuted.

Accepted guidelines in respect to the use of covert camera is to install a camera without telling staff when the client has reasonable suspicion an offence such as theft is being committed but only for the duration of the investigation period. That is, not on fishing trips and the camera is removed after the matter has been resolved or the investigation closed. The main factors are "reasonable suspicion" and limited time frame" as the camera is there to get the evidence. These guidelines protect innocent staffers from intrusion and arguably suspicion. "The camera doesn’t lie"

So take good advice when you see a problem and always act promptly.

Whether a family or a business, it’s quite the same, good principles and solid examples help set the foundation. Organisations need rules and limits. If instead staff sees sloppy habits and dishonest deeds then whose fault is it really?

Tips on setting good examples to staff:

Let them know that you are running a real business. Don’t act like the company is just a vessel for giving you an easy lifestyle with lots of freebies.

Ensure you have and that they see that the company adopts proper accounting processes and systems. If a discrepancy is noticed involve them in the solution.

If possible share the profits with them by way of an agreed formula. It might be cheaper in the long run.

Consider using modern technology. There are good point-of-sale and sales –v- stock equipment nowadays. GPS tracking and overt CCTV cameras also show staff that you take business seriously and should be promoted as being in everyone’s interest and safety.

Much has been said about Ministers using their credit cards for personal expenditure. 

Our spin on this is comes from the many cases we have investigated where there is a direct correlation between the misuse of cards and outright dishonesty often starting with long lunches, progressing to after work drinks, then cash withdrawals, strip clubs, and from then it just spirals out of control.  

We investigated one such incident that involved over a million dollars over a period of years.  

A company card should be a privilege earned and in the business world, profits belong to the shareholders and cards must be audited.Once the employee or manager realises their expenditure claims are not formally audited they are in effect given a licence to steal.

John Key is correct, in government you need full disclosure or publicity.

In a commercial environment you need to ensure there exists accountablity by way of a proper audit process. 

Following our Special Announcement on 30 June, we are pleased to announce that our Managing Director Ron McQuilter is back hands-on and working alongside our team to ensure we provide the very best service possible.

Our Board, now comprising Bryan Mogridge (chairman), Atul Mehta CA, and Ron McQuilter, provides a sound credible entity.

Paragon’s team throughout the country is very excited about our new structure and is looking to develop our brand based on integrity, experience and most importantly servicing our clients.

See Our Board

As previous blogged about, Paragon featured in a TV3 expose of security lapses at our main airports after the introduction of new self check-in facilities 

It was difficult to be restrained about these lapses, not the least because we all travel up and down the country

Certainly no-one would like to think that after you have checked in and gone through Security (estimated $4.66 cost to each traveler) that anyone could just then wander up to the check-in machine and add luggage under your name. They are then provided with a printed luggage tag allowing them to send whatever they liked on your plane.

The terms espionage, safety, security, privacy all spring to mind though great to see they have since fixed the problem.

View the video here

Paragon are pleased to announce that Atul Mehta has been formally appointed to our Board.

Atul is a partner at Markhams MRI, Auckland and has been our company accountant for 8 years. Atul brings a wealth of financial governance experience as well as being an independent advisor. 

The combined strength of our Board allows us to deliver a trully well structured and experienced company focussed on meeting our clients needs under formal governance.  

A London lawyer runs a stop sign and gets pulled over by a Glasgow copper. He thinks that he is smarter than the cop because he is a lawyer from LONDON and is certain that he has a better education then any Jock cop. He decides to prove this to himself and have some fun at the Glasgow cops expense!!

GC = Glasgow Cop NB: Photo shows a Paragon agent aged 19 years in Glasgow Police

LL = London Lawyer

GC ' Licence and registration, please.'

LL 'What for?'

GC, 'Ye didnae come to a complete stop at the stop sign.'

LL 'I slowed down, and no one was coming.'

GC 'Ye still didnae come to a complete stop. Licence and registration, please.'

LL 'What's the difference?'

GC 'The difference is, ye huvte to come to complete stop, that's the law, Licence and registration, please!'

LL 'If you can show me the legal difference between slow down and stop, I'll give you my licence and registration; and you give me the ticket. If not, you let me go and don't give me the ticket.'

GC 'Sounds fair. Exit your vehicle, sir.'

The London Lawyer exits his vehicle.

The Glasgow cop takes out his baton and starts beating the crap out of the lawyer and says 'Dae ye want me to stop, or just slow doon?

As reported on Campbell Live tonight at 7pm, the new check in system at Auckland Airport is sadly lacking in even the basic security features. The gorgeous reporter Rebbecca Wright (who, trust us does not look like a man), was able to travel on a man's ticket, even boarding the same plane as the same man and travelling together on the same Boarding Pass. Then to make matters worse, they were able to check in an extra bag after a passenger (an MP) had already checked in and went through Aviation Security screening. The bag could have contained anything defamatory, illegal or worse.

Airport officials need to act on this now and actually engage security experts as opposed to computer people. Do we pity the person who signed off on this new system ?? No we pity the person who might fall foul of this basic "security 101" error.

Sunday Star Times 20 June 2010

BURNING DOWN the house. And the car. And the boat. You name it, New Zealanders have been setting it on fire in often desperate attempts to cope with the recession.

Statistics New Zealand figures show that the number of arsons has increased by 20% over the past two years to 2768, while the number of cases solved has decreased by 12%.

Ron McQuilter, of Paragon Investigations, one of the country's largest private investigators, says much of that increase can be put down to fraudulent insurance claims.

Insurance Council figures suggest that each policy holder is paying up to $100 extra a year to compensate for fraud.

Earlier this month, Auckland married couple Antonio Banderas Carlos and Khalida Husen lost their appeal against one count of arson and one of attempting to gain a pecuniary advantage after causing a 2008 explosion which destroyed their restaurant, Cafe Hasan Baba, in Howick.

In sentencing them to four years' imprisonment each, High Court Justice Judith Potter heard they were in financial difficulty at the time they lit the fire and hoped to claim on insurance.

On the night of the fire, Carlos and Husen asked customers to pay for their meals in cash because, they said, the Eftpos machine had broken. They left the restaurant shortly after 2am and just before 3am a passerby reported a flash followed by a large explosion, which caused the windows and doors of the cafe to be thrown across the street. No one was injured, but the insurance company refused to pay out without a police investigation.

McQuilter says his company alone has seen a surge in the number of fraudulent insurance claims because of fire.

"Cars are a biggie, there's the occasional boat and certainly houses. People will go to the extreme. We'd be doing half-a-dozen [arson cases] right now."

Last month, he investigated a case of a man who couldn't pay his mortgage and so set fire to his house. But he had taken some "precious items" and stored them in the outside shed, making the fraud easy to spot.

"These are people who are not criminals, they are not seasoned criminals.

"They've found themselves in a position and have decided to go this route... The recession has definitely driven insurance fraud. In fact, it's still driving it. People are still struggling." Some insurance fraudsters are hiring others to do their dirty work for as little as $200.

"There's an awful lot of cars being burnt out. They'll leave the key somewhere for someone to take the car away and burn it.

"Just over the last couple of years we've seen a lot more insurers prosecuting people."

The penalties for fraud quickly rack up, as offenders are ordered to pay for the cost of their prosecution, as well as reparation.

leigh.stoep@star-times.co.nz

The case of Mr Norris who installed a covert camera in his wifes bedroom even when he was living elsewhere only serves as a reminder just how technology has changed. His various and ever changing reasons don't wash. The type of camera he used can be bought for around $750 and worse still even can record sounds. It was NOT an alarm as he told her, but a device designed to spy, nothing else. 

So when is it acceptable to use covert cameras in the workplace ??

The Privacy Commissioner publishes outcomes on her website and there are a few relating to covert cameras. In short, they can be used when an employer has a legitmate concern such as missing stock, and covert CCTV is deemed an appropriate tool. They must only be used for the duration of the concern, removed once the matter has been resolved and not left in situ. Better to let the staff know they were used, where they had been placed and that the matter has been resolved also at the termination. Done in a proper manner, the staff will realise the employer cares about keeping good workers employed and thieves out. 

Any good PI will be able to assist and will ensure you maintain the law.

Getting back to technolgy, there are any number of cameras, pens, watches and even chewing gum packets that have cameras. They are legitmate, they are affordable and as determined by Mr Norris, they are very dangerous in the wrong hands. 

There has been a lot of media in the past days about purchases on business or government credit cards for personal use. John Key was interviewed on TVNZ Breakfast programme this morning and Phil Goff has now censured his MP's. Whilst the media is about MP's spending, we see this type of activity in business all the time. Experience suggests that someone who falsifies a credit card entry will in all likelihood be scamming elsewhere in the business. Don't take a persons word and double check. Make this "audit" part of the "priviledge" of being issued with a company card.  

The Independent Business weekly is closing it's door this month after 18 years. In today's editorial Jenni McMannus talks about how the paper started in 1992.

I fondly recall sitting in a pub with her and Warren Berryman (RIP WOG) when they talked about the concept. I was their first advertiser and have remained loyal since, paying the same rate in all that time.

The deal when we first started was that I paid each week. If they had others that would pay more then I got bumped but still paid. "The good old days".

The other funy thing was my photo that has remained the same for 17 years !!! People always comment about NZ's PI Peter Pan.

I will miss the Independent and certainly miss my old mate Warren.