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Breaking News in the Industry: January 10, 2017

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Drug Wholesaler Cops To $100M Prescription Meds Fraud

The United States Attorney for the Southern District of New York, announced that Randy Crowell, a/k/a “Roger,” pled guilty to fraudulently distributing more than $100 million worth of prescription drugs obtained on a nationwide black market. Crowell used a Utah-based wholesale distribution company to sell illicitly procured drugs to pharmacies, which in turn dispensed them to unsuspecting customers.

Crowell purchased more than $100 million worth of prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.

To maximize their profits, Crowell and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The profitable scheme was potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. Many of the bottles purchased had in fact been previously dispensed to others. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently insanitary and insufficient to ensure the safety and efficacy of the medication.

Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed. They would then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle.

Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels. The corrupt wholesale companies then resold the bottles as new, at full price, to pharmacies, including potentially the very same pharmacies that initially dispensed these medications.

To convince pharmacies to buy these medications, and health care benefit programs to pay for them, Crowell and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold from a manufacturer to the pharmacy. In truth, none of the medications purchased or distributed had come from legitimate sources of supply, and the pedigrees were intentionally fabricated so that the medications could be sold, as new, to pharmacies and so that health care benefit programs would be duped into paying for these illegitimate second-hand drugs. [Source: Insurance Fraud News]

 

Police officer shot, killed; suspect still being sought

Hundreds of law enforcement officers are searching overnight for a fugitive who is accused of killing a cop at dawn on Monday when she tried to chase him down at an Orlando Wal-Mart and arrest him. A second law-enforcement official died in a crash just hours later as officers and deputies scrambled to find the murder suspect.

“We are going to bring this dirt bag to justice, and he’s going to jail,” Orlando Police Chief John Mina said.

Loyd has been wanted for murder since his pregnant ex-girlfriend was shot at her front door on December 13th.He has a long criminal history and on Nov. 30 wrote on his Facebook page: “Goals!!!! To be on Americas most wanted.” He also has a long criminal record and served 10 years in prison and five years on probation for conspiracy with intent to distribute cocaine, according to federal court records.

The violence started at the Wal-Mart when someone spotted Loyd, knew he was wanted for murder and told Orlando police Master Sgt. Debra Clayton, who also happened to be at the store. She was on the job, in uniform and wearing body armor, Mina said. She called dispatch, then started chasing after Loyd. She yelled for him to “stop” but instead the felon opened fired. She shot back but didn’t hit him, Mina said.

Backup officers who arrived 28 seconds later tried to save Clayton with CPR, according to the city, but she was pronounced dead at 7:40 a.m. at Orlando Regional Medical Center. A short distance from the Wal-Mart, a captain at the Orange County Sheriff’s Office spotted Loyd. Loyd pulled into an apartment complex and fired at least once at the deputy, who was in an unmarked SUV. The bullet missed him but hit his SUV. The suspect then carjacked a vehicle and fled. He abandoned that vehicle near Cinderlane Parkway, officials said.

A massive manhunt for Loyd resulted in two motorcycle crashes by Orange County Deputies, one fatal. Deputy Norman Lewis, an 11-year Sheriff’s Office veteran, was killed 2-1/2 hours after the shooting when his motorcycle was struck by a van, the Florida Highway Patrol said. The search is still ongoing. [Source: The Orlando Sentinel]

 

2017 Retail Predictions

As the new year gets underway, it’s time to look forward to the changes and trends 2017 will bring. For retailers, that includes some new consumer behaviors in addition to the always-expected technological advances. While change might seem overwhelming, it can also provide fresh opportunities for sales. And with a little planning, retailers can stay ahead of competition to meet the demands of their customers. To help guide you into the new year, here are a few of our 2017 retail predictions.

Non-Traditional Revenue Sources. Many retail organizations are beginning to explore non-traditional revenue sources to keep profits up. One of the easiest turnkey ways to build revenue? Credit protection and warranty solutions. These products not only offer a positive impact on the bottom line, but they’re also a great way to build customer loyalty.

Automated Online Returns. As online shopping continues to become more common, you can anticipate a push for easy, automated return processes from online retailers. Convenience can help breed confidence, allowing customers to make a purchase online knowing they can easily return if they’re not satisfied.

Retailer Transparency. From manufacturing details to corporate values, the average consumer desires greater transparency from retailers. Businesses that embrace the same values as consumers can anticipate a boost to brand loyalty, which is a great reason to let your customers know you’ll always be up front with them.

Renting vs. Buying. The year 2017 may also see a rise in rentals — especially when it comes to larger or generational electronics. Knowing that a product’s lifespan lasts only until the release of next generation model may give consumers pause before taking the full purchase plunge. For example, full two-year phone contracts are becoming more expensive. With consumers aware the next iteration comes out in just in six short months, there’s far less incentive to sign up long term and more mobile customers are leasing devices rather than buying them.

Independent Retailers. Over the last several years, there’s been a growing demand for niche, independent retailers. Why? It starts with personalization — having access to a retailer that simultaneously caters to individual needs and likely knows their customer inside and out. For both new and existing brands, this trend leads to improved, more personalized service as well as a smaller store footprint.

Mobile, Mobile and More Mobile. Incorporating a mobile strategy can only benefit your brand — regardless of your company’s size. Simply ensuring a website is mobile friendly, or enabling mobile purchase, creates a sophisticated mobile interaction that improves the customer experience.
[Source: Chain Store Age]

 

 

Shoplifter in critical condition after shooting himself inside police car

Police in Austin, Texas are investigating how a suspect handcuffed inside a patrol car was able to get into the car with a gun. APD protocol calls for searching a suspect for weapons before they are placed inside a police vehicle.

Police arrested the young man at Barton Creek Square Mall for shoplifting and possession of a controlled substance. Officers couldn’t figure out his name, so they decided to drive him to APD Headquarters to get fingerprints. On the way, police say the young man was making suicidal comments. When the officer asked if he had the means to do that, the suspect said he did.

“He removed a pistol it appears from the back of his waistband, placed it towards his head while still handcuffed, was able to pull his hands around to the side,” explains APD Interim Chief Brian Manley. Manley says the officer then pulled over and got out of the car and started shouting commands at the suspect. “The officers were trying to get people a safe distance away from the scene while actively handling what was happening.”

According to Manley, after six minutes of pointing the gun at himself, the suspect shot himself in the head. “Absolutely there was a danger [to the police officer]” Manley said. “If this individual had chosen to remove that weapon and fire at the officer instead of saying something, we could be here discussing a very different incident here today.

Police believe the man is in his late teens or early 20s, but he still has not been identified. The suspect was sent to University Medical Center Brackenridge in critical condition.

Note: Keep in mind that the situation described would also infer that the shoplifting suspect had the gun in his possession when apprehended by loss prevention at the store where the incident occurred. [Source: CBS News]

 

Accused shoplifter arrested in police officer hit-and-run

Police in Massachusetts say a shoplifting suspect, accused in the hit and run of a Plainville police officer Sunday morning, is now in custody. That suspect, identified by police as Robert M. Camara Jr., was brought into police headquarters late Sunday night.

Police were called to the Plainville Target store after they got a report of shoplifting. Cellphone video recorded by a witness shows Officer Todd Holbrook down on the pavement, injured after confronting the suspect. The video only shows part of the incident but police say a moment earlier, Camara struck Holbrook with a car and then left the scene.

Camara will be charged with assault and battery with a dangerous weapon, reckless operation of a motor vehicle, leaving the scene of a crash causing personal injury, larceny over $250, using a motor vehicle in the commission of a felony and operating with a suspended license. Police also brought a vehicle into the station garage for processing. It’s a silver Ford, matching the description of the car investigators had been looking for.

Holbrook was taken to Rhode Island Hospital with non-life-threatening injuries to his lower body. He was treated, released and is now resting at home. [Source: CBS News]

 

Texas Organized Retail Crime Association (Texas ORCA) announces official launch

The Texas Organized Retail Crime Association has officially announced the launch of Texas ORCA. The Texas ORCA is a group of retailers who partnered with law enforcement aimed at reducing property crimes, keeping shoppers safer and lessening their chances of becoming victims. Texas ORCA was formed because of a need to combine efforts of law enforcement, security and loss prevention to combat the growing problem of Organized Retail Crime (ORC). Developed to allow members to share intelligence relating to the businesses and communities we serve, this shared information includes, but is not limited to, crimes of organized theft, robberies, counterfeiting, check and credit card fraud, prescription fraud, identity theft and other scams.

Texas ORCA welcomes Law Enforcement, Loss Prevention, Investigations, Security and Banking industry professionals to join and contribute to the fight against ORC. Several retailers, led by Macy’s, Walmart, Target, Lowes, Home Depot, CVS, Walgreens, Gap and Nebraska Furniture Mart formed a unified coalition with the Texas Retail Association and several key law enforcement agencies within the state. To learn more and to join the Texas ORCA, visit www.texasorca.org.

The post Breaking News in the Industry: January 10, 2017 appeared first on LPM.


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