Posted by Michael de Andrade.

Volkswagen, one of the European auto giants, admitted to “installing defeat device software in 11 million cars.” These “defeat device software” lets carmakers to change performance settings of the engines before a pollution test. These software would not only switch the performance settings of an engine but also detect when “they were being tested for nitrogen oxide emissions.” The installation of such defeat device rose a huge debate as to whether or not Volkswagen’s “emissions-test trickery” is a violation of European testing rules. The question at hand as described by Paul Willis, top Volkswagen official in Europe, was “whether the software officially constituted a defeat device” under European Union regulations.

The Volkswagen scandal, not only questioned whether Volkswagen is cheating or not, but questioned strongly Europe’s permissive testing practices and the compatibility of American and European auto regulations. This scandal led to Trans-Atlantic trade talks to rapidly increase so the United States and European nations can agree to a mutual auto regulation rules. In Europe “the setting of the engine and of the vehicle’s controls shall be those prescribed by the manufacturer;” making Volkswagen alteration of engine settings not a clear cut violation of European rules. But what makes the debate become such a big issue is that roughly 11 million Volkswagen vehicles carry the software, which about 500,000 are in the United States alone. This can cause Volkswagen to lose billions of dollars despite the penalty enforcements by auto regulators in Europe are very passive and rare.

Volkswagen came out by stating they are “committed [themselves] to fixing the vehicles.” Volkswagen is being comprehensible and trying to fix the issue that they commenced. As stated by Ms. Caudet, “European legislation implies that a vehicle must use the same engine setting during the regulatory emission test and in real driving,” which would make Volkswagen’s actions a violation against European auto regulations. The situations at hand continued to cause tension when the Environmental Protection Agency discovered that Volkswagen used another defeat device in some larger cars and sport utility vehicles that had not previously been implicated” making the cost to fix the issue grow substantially. In the end, the European system is known for its loopholes, for “allowing automakers to test preproduction vehicles that will never be sold” but actions need to be done so auto regulation rules in Europe and the United States, through the Trans-Atlantic agreement, can become more enforced. The “phony system of testing” as described by Gerben-Jan Gerbrandy, a Dutch member of the European Parliament, must be improved and by “simply making the road emission tests easier to pass,” is simply not the right step by the European government.

Michael is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Brennan Smith.

A judge, a deputy constable, and a supervisor of all police, fire, and emergency operations walk into a bar…

Although a common play on the setup of a hysterical joke, the indictment of John I. Waltman, Robert P. Hoopes, and Bernard T. Rafferty is not something the members of Bucks County and Lower Southampton Township are laughing about. The three men named are the judge, supervisor, and deputy constable—respectively—referenced above, who just got indicted for money laundering.

Here’s what happened: “The trio conspired to launder about $400,000 in funds represented by investigators to be the proceeds of health care fraud, illegal drug trafficking and bank fraud, according to a federal court indictment unsealed Friday morning, a statement from the U.S. Attorney’s Office said. The men allegedly took laundering fees of $80,000,” (theintell.com). In order to launder the money, the trio went through a series of processes. One source of revenue, and by far the most prominent one, was through Raff’s Consulting LLC—a company with which Rafferty had full control—with which the three used “bogus documents” in order to turn a profit.

To understand how they did this, the facts of the case must be examined. Per the research done by theintell.com, Robert P. Hoopes would arrive to an office building in an unmarked Lower Southampton Township Police car, exchange the false documents for $100,000 cash, and bring the money back to the car (where John I. Waltman and Bernard T. Rafferty would be waiting). From there, Waltman and Rafferty would go to the Philadelphia Credit Union to deposit the money—after paying Hoopes and pocketing their own cuts—into the Raff’s Consulting LLC accounts. The operation lasted from June 2015 to November of 2016 with the trio laundering $400,000 between June and August of 2016—earning $80,000 in laundering fees (Philadelphia.cbslocal.com).

Because of their crimes, the FBI was forced to get involved and finally caught them in an undercover sting. The three will each face one count of conspiracy to commit money laundering, and three counts of money laundering. District Judge John I. Waltman has been suspended without pay, with the other two removed from their positions.

Brennan is a sports management and marketing major at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

http://www.theintell.com/news/crime/bucks-county-district-judge-constable-lower-southampton-public-safety-director/article_f23e17b6-f07a-5e1b-8abb-6edf11a47ecc.html

(Article)

http://philadelphia.cbslocal.com/2016/12/16/authorities-judge-director-of-public-safety-deputy-constable-charged-with-conspiracy-money-laundering/

(Article)

Posted by Shakil Rahman.

Americans pride themselves on the idea that their country is the land of the free, where people of different parts of the world could have the equal opportunity to live as they wish, pray freely, and be free to live without being persecuted for their beliefs. It is stated in the constitution and laws are created to make sure people’s rights are not infringed upon or people are discrimination for their beliefs. But there are times when the people seem to be discriminated against because of their beliefs and it spills into the national spotlight.

Abercrombie & Fitch are multimillion dollars clothing store and in one of their stores a Muslim woman named Samantha Elauf applied for a job but she was rejected. When inquired about why she was being rejected, the company replied that the company’s dress code is “classic East Coast collegiate style” and since she wore head scarf, a headwear named Hijab that Muslim women wear, which went against the dress code, she was not hired. Ms.Elauf filed a discrimination lawsuit against Abercrombie & Fitch and the case went to the Supreme Court after being going through trial court and appeals court. The defendant claimed that since the plaintiff did not specifically state that the head scarf was worn for religious reasons they did not discriminate the plaintiff. The Supreme Court justices voted 8-1 for the plaintiff stating that the company should have understood that the head scarf had a religious significance, since it is of common knowledge and therefore the plaintiff was being discriminated and that is prohibited by the Title VII of the Civil Rights Act of 1964.

The lawsuit against the company is based around the claim that the company rejected the applicant’s application for a job due to dress code violations knowing that it had religious significance. The reasoning given by the company was that the applicant did not specifically ask for religious accommodation, therefore there was no discrimination. While it is true that the applicant did not request religious accommodation, head scarves are commonly used for religious reasons in various religions and being ignorant of the fact is not valid argument. Therefore, when the company rejected Ms.Elauf’s application due to her wearing a head scarf, they were discriminating her based on her religious practices. Being ignorant of law is not sufficient excuse either, since the company is supposed to know the laws of the land it is conducting its business in.

In the modern world where globalization has brought the world, and the business world, laws are created to make sure that people are not discriminated for their personal life choices. But sometimes the laws are not interpreted in the same manner by people. For instance, for this lawsuit, the trial court granted the Plaintiff $20000 for the lawsuit, but the appeals court saw the same case and decided that there were no signs of discrimination and overturned the ruling, only for the ruling to be overturned by the Supreme Court. Interpretation of the law is an important part of the business world that must be done in a prudent manner by the courts but also by companies and individuals in order to avoid situations where a wrongdoing does not occur due to ignorance.

Shakil is a student at the Stillman School of Business, Seton Hall University.

Posted by Jessica Page.

In 2008 and 2009, there was a huge salmonella outbreak traced to peanut butter produced by the Peanut Corporation of America. Nine people died from this incident and 700 were reported ill. The $30 million company was shut down and liquidated after the incident and the CEO, Stewart Parnell, was indicted and prosecuted. In late September, he was sentenced 28 years in prison.

What’s intriguing about this article is the comparison to the GM faulty ignition case. In this particular incident, the defect caused 124 deaths and over 200 injuries. GM has recently settled for $900 million and a three year prosecution agreement. The major difference between the two cases though – indictment of employees. Preet Bharara, one of the best federal prosecutors in Manhattan, explained, “it is unusually difficult to prosecute auto industry executives” and because of the national auto safety laws, there is a call for punishing the corporation as a whole, rather than any one individual.

The main conviction in the salmonella case is the fact that Parnell committed fraud by “knowingly introducing tainted peanut butter paste into interstate commerce.” The fact of the matter is though, there were GM executives who knew about the faulty ignition but failed to report it within the five-day span. The company itself was fined as a corporation for this matter, but there was not specific indictment of GM executives. The real issue at hand is how much harder it is to prosecute auto executives when it comes to cases of product liability. There is currently a bill that many senators are working to pass that would make this process easier and hold executives accountable, if they were knowledgeable of the faulty auto product or provided false statements to consumers, as GM did. This could change future product liability cases within the auto industry and as Senator Blumenthal stated, “one sentence like Parnell’s [within the automotive industry] would change auto safety dramatically and enduringly.”

Jessica is a finance and marketing major at the Stillman School of Business, Seton Hall University, Class of 2016.

Posted by Azhanae Evely.

I am going to tell you about my first encounter with being inside of a court room.  I was given a ticket for “No parking in a handicap zone.”  Through this experience, I learned a lot about how to prepare for a court hearing and what it is like being in court.

I live in East Orange, New Jersey, and there is a requirement for the overnight parking.  In front of where I normally park are two handicap spots back to back.

I woke up one morning finding a parking ticket. The ticket stated, “Court Appearance Required: The undersigned further states that there are just and reasonable grounds to believe that you committed the above offense and will file this complaint in this court charging you with that offense.”

The very first thing to do if you get a ticket is read the ticket. I had never thought to turn the ticket over and read the print there. Had I not read the back of the ticket, I would have been missed these words:  “If you intend to plead not guilty, to the offense charged in this complaint and summons and have a trial, you must notify the court administrator . . . of your intentions at least 7 days prior to your scheduled court date. If you fail to notify the Court Administrator, it may be necessary for you to make 2 court appearances.” The original court date that was printed on the ticket was 3/3/16. However, when I called into the court’s administrator’s office 7 days prior to the court date, I learned that they had never set a court date. Had I not called, I would have gone on the date given to me just to have to come back because it was not scheduled.

The next thing I learned is how to fight a ticket. The first thing I did was take pictures of my car in the spot. I took multiple pictures from different angles. The weather also worked to my advantage because at the time it snowed a lot and the salt on the ground actually made a ring around where my car was which gave sufficient proof that I did not tamper with the car to make it look like I was never over the line.

I looked up the statutes on what is an offense to parking in a handicap zone. The New Jersey Handicapped Parking Law in (C.394:4-207.9) says, “Access to parking spaces, curb cuts, or other improvements designed to provide accessibility, shall be unobstructed.”  I found that having the information helped when going into court because it can aid you in determining whether to plead guilty or not guilty. I had decided that I wanted to plead not guilty.

In East Orange, they have everyone that has tickets for parking sit in one room, which I found weird because everyone could hear you.  I can see why they do it; it is about having an open trial. The first thing that is done is the roll call. After a little while, the prosecutor comes into the court room and calls everyone up one-by-one by last name.

The first thing the prosecutor asked me was why I was there. After telling him what kind of ticket I got, he asked me why I committed the offense. This threw me off because we learned in business law class that you are innocent until proven guilty; yet, he was taking the stance as if I was already guilty of the crime.  So, I told him I wasn’t in the spot. This is where I showed him the pictures that I had taken.

The pictures indicated where the signs began as well as that there was no sign behind my car. I also showed him that there was a car in that handicap spot, which means I was not obstructing the spot. After they hear from you, they either tell you the best plan of action, or like in my case, just tell you to sit back down.

While in court they do ask you to turn off your devices, so my suggestion is to always have hard copies. The judge was the one to read everyone their rights and even talked about how they could appeal. He even mentioned the fact that the court can decide whether to go to trial depending on the severity of the case. When it was my turn, they asked me to state my name for the court records which I did. Then at that point the judge let me know because of the sufficient proof I provided his prosecutor, the ticket would be dismissed. It is almost like depending on what you show the prosecutor in the beginning affects the judge’s decision.

So, because I took the time to actually make sure I had images of that moment really helped me. It was better going in knowing as much as you can about the system, because you do not ever know what can really happen.

Azhanae is a business law student at the Feliciano School of Business, Montclair State University.

Posted by Justin Ihnken.

For many years, especially those who found themselves in an area of economic success, investors who succeeded because they worked with a financial advisor. The roll of the advisor is to assist individuals in asset portfolio management. Investments in both fixed market vehicles, and those driven with equity in the market, have [for the majority of advisors] been the number one and two sources of financial security investments. Both of these categories are tied together with the strategic planning and goal orientations of specific individuals. This theory comes primarily because “your advisor” would allocate dollars in a way that would ultimately secure monies for specific reasons and even more so, provide an aspect of future practical growth.

As time continues, there are still many individuals that work with advisors and insist that they do planning and individual investments on their own. Coming changes in investments will show that there is a driving need for RIA’s (Registered Investment Advisor). Unfortunatly, the traditional fixed income and equity allocations are rather lacking for specific individuals that wish to diversify their portfolios accordingly. A recent study done by Bridget Bearden, director of retirement research at fund industry consultant, Strategic Insight, went as far as to say many folks do not understand that the effects of falling short on their diversification strategy may have a serious impact in the long run.

“The fund industry generally advocates a 10 percent to 20 percent allocation to liquid alternatives for risk mitigation. But many off-the-shelf asset allocation portfolios seem to fall short of that.”

Many RIA’s are of traditional thought, however the coming realization of alternative investments is proving itself to be a more prominent tool to properly advocate clients. An example of a small and “up and coming” firm that shows its mindset is multiple footsteps ahead of the curve would be that of Circled Squared Alternative Investments. Circled Squared was founded in 2014, by Jeffrey Sica, CEO and President of Sica Wealth Management. With the changing times and ability to allocate dollars properly will prove to be a huge outlet for this small powerhouse. In an interview with a Berkshire Hathaway associated press, Sica spoke on his outlook and thoughts on the future for both Circle Square and alternative investments.

Add to this the inescapable conclusion that investors are growing increasingly dissatisfied with the stagnant performance and unacceptable volatility they’re getting from traditional investments like stocks and bonds, and you have a situation in which advisors have fewer and fewer ways to provide value to their clients.

As the stock market continues to be a murky water, few dare to try to understand the various inlets and outlets of the market. With the change of alternative investments slowly phasing themselves into our everyday planning as RIA’s, we must work above and beyond the curve and enable our’ clients and potential clients alike to take advantage of the various opportunities that alternative investments withhold.

**About Circled Square Alternative Investments

“Circle Squared Alternative Investments is a firm devoted to providing independent financial advisors with access to a range of innovative alternative investments previously available only to institutions and ultra-high net-worth investors. The suite of investment products will include real estate, private equity, private credit, natural resources, private placement offerings, entertainment and media.”

Justin is a student at the Stillman School of Business, Seton Hall University.

Sources:

1. D’Allegro, Joe. “A Retirement Riddle Placing $1 Trillion at Risk.” Cnbc.com. CNBC, 10 Nov. 2015. Web. 12 Nov. 2015.

2. Healy, Andrew. “Jeff Sica Launches New Alternative Investments Firm for RIAs; Unlocks Door to ‘Real Economy’.” Business Wire: A Berkshire Hathaway Company. Berkshire

Posted by Abier Mustafa.

Cell phone Company, AT&T, has agreed to pay back $105 million in what is being called ”the largest cramming settlement in history.” AT&T has been adding unauthorized charges to tens of thousands of customers’ monthly bills. The charges are usually for the amount of $9.99 per month, coming from third-party services, including trivia, horoscopes, and love tips.  ”AT&T is accused of keeping at least 35% of the fees, as well as obscuring the charges on bills and preventing customers from securing full refunds.”

There have been previous lawsuits against other cell phone providers besides AT&T.  For example, the Federal Trade Commission has filed a similar lawsuit against T-Mobile in the past also due to unethical charges to customers.  “For too long, consumers have been charged on their phone bills for things they did not buy,” Wheeler, the Federal Communications Commission chairman, said- “It’s estimated that 20 million consumers this year are caught in this kind of trap, costing hundreds of millions of dollars.”

AT&T has released a statement saying that they have provided customers with “Premium Short Messaging Services” in the past. However, they have discontinued third-party billing.  To resolve all claims, $80 million of the settlement has been set aside for customer refunds, along with $25 million in penalties due to regulators.

So if you’re an AT&T customer and have been wrongfully charged, you may be eligible for a refund!

Abier is a finance major at Montclair State University, Class of 2016.

Posted by Jessica Page.

General Motors Co. has recently been in the news for its faulty ignition switches in over 2.6 million of the company’s Chevrolet Cobolts and other models that were recalled in 2014. The faulty ignition switches were found to “slip out of the run position and disable features including air bags.” This product defect has been connected to over 100 deaths and over 200 injuries. In September, the U.S. Justice Department brought a criminal case against GM. They agreed to pay $900 million to settle and a $35 million fine for not reporting the defect.

On Monday, Judge Robert Gerber stated that it is possible GM will also face punitive damages to compensate consumers who were harmed by the defect, even though the company sought to block plaintiffs making these claims. Judge Gerber has suggested the punitive damages could amount to billions of dollars if the legal claims are settled or successful. This is partially due to the fact that GM admitted in the original settlement that they “[mislead] regulators about the defective switch and [failed] to recall millions of vehicles.”

Another interesting factor for this case is the bankruptcy restructuring GM went through. In the restructure, they assumed responsibility for “future product-liability cases involving older vehicles.” Since this is so broad, it is likely that GM could be held responsible for claims on both compensatory and punitive damage because of its knowledge of the defect and conduct, but only to the extent that the “New GM” holds. GM has agreed to spend over $500 million to settle these cases and over the next few months, the company is expected to face even more death and injury cases that have yet to be settled.

Jessica is a finance and marketing major at the Stillman School of Business, Seton Hall University, Class of 2016.

Posted by Brianna McCoy. 

In the very end of August of this year, 2018, a court ruling involving the FCPA could potentially limit the government’s power to go after foreign companies and individuals in bribery cases. This type of court situation is dealt within the U.S. appeals court. The appeals court supported a ruling that tightens and limits the jurisdiction under which prosecutors can bring foreign bribery charges. Attorneys involved in this ruling recognize that “affirming a lower-court ruling that dismissed conspiracy charges against a foreign national accused of facilitating a bribery scheme could have a significant effect on future enforcement,” (WSJ Samuel Rubenfeld). This statement demonstrates the limits of the Foreign Corrupt Practices Act (FCPA). The FCPA was passed in 1977, with the primary purpose to prohibit the payment of bribes, in any form, to foreign officials in order to secure or retain business. It is interesting how this act is for business purposes by American individuals, companies, and issuers of American stock, yet if a foreigner is involved in a corruption scheme while in the U.S. they are also subject to the law.

However, now that there is a narrower view of this statute, the Justice Department is going to see a drawback on their ability to go after foreign companies and foreign individuals. You may wonder where this idea is coming from… This appellate decision is focused “on an individual’s challenge in the foreign-bribery case involving Alstom SA. The French transportation manufacturer agreed in December 2014 to pay $772 million to settle the case, which involved allegations in several countries,” (WSJ Samuel Rubenfeld). Several other people have been charged, one being Lawrence Hoskins, a U.K. national. Hoskins was probed because while he was working for a French unit of Alston, it was alleged that he approved payments to third-party consultants related to a bribery scheme in Indonesia. Luckily for Hoskins, he wasn’t subject to the FCPA because he “didn’t work directly for the U.S.-based unit of Alstom and didn’t participate in the bribery conspiracy while physically in the U.S.” However, the appellate court revised this lower court ruling because prosecutors can argue that Hoskins colluded with the Alstom’s employees while they conducted bribery acts in the U.S., even though Hoskins wasn’t physically in the U.S.

Now, the Justice Department is “reviewing the ruling and considering next steps.” By doing this, questions may come up about whether the U.S. has jurisdiction in an FCPA case earlier in an investigation. In the past, it has been uncommon for an individual to challenge the U.S. government’s affirmation in jurisdiction in an FCPA case, but the appellate decision could provoke more attempts to do so. Because in the past these FCPA settlements have relied on conspiracy theories, now prosecutors will turn toward developing evidence regarding conduct in the U.S. by foreign nationals to bring its FCPA cases. In addition to this, the government may continue its tendency of using money-laundering statue where necessary.

Brianna is a management major at the Stillman School of Business, Seton Hall University, Class of 2021.

Posted by Jasmine Lightburn.

In this law suit, a content moderator is suing Facebook for causing her post traumatic stress disorder (PTSD). Content moderators are responsible for sifting through often criminal and disturbing posts that users all over the world upload and removing them from the web before the general public sees. She claims that the violent images and other brutal content she viewed caused immense trauma and led to this disorder. The former moderator, Selena Scola, viewed the harshest material ok the web. This included rape, suicides, and other killings every day and claims that she was not protected fairly. According to Scola, the correct psychological services were not in place.

In order to protect other content moderators, Scola urges Facebook to implement effective psychological support services to ensure that employees are receiving the necessary help. She also wants to incorporate mandatory medical testing on a regular basis to further guarantee on site medical attention. She believes that this will reduce the amount of workers who suffer from extreme disorders like herself and other issues that do not get reported or addressed.

In my opinion, Facebook should offer Scola a package deal to cover any medical costs associated with her diagnosis of PTSD. I do not think the company should have to pay any other money other than those costs related to her individual psychological appointments. Moving forward, I agree that Facebook should take deeper measures to monitor the content moderators. In the job description, the company should also include possible health effects that may result from the work that needs to be done. I don’t believe all of the blame can solely be put on Facebook, but they should be responsible for some of what happened.

Jasmine is a business management major with a non-profit minor at the Stillman School of Business, Seton Hall University, Class of 2020.

Article:

Posted by Marisol Ramirez Ugarte.

In the recent years there has been an upheaval in the legal profession. Legal services, more than ever, are being required by the population. In the rise of employment for attorneys comes the need to manage legal firms in a manner which exploits the large increase in demand.

In fact, speculation on whether legal firms should adopt the structure of corporations has become prominent. According to Frank Carone, executive partner at Abrams Fensterman, “Law firms that are able to consistently bring in high-quality business and ensure that a sizable portion of the revenues go to the bottom line are the ones that will seriously excel” (Prince). He concedes that while the best interests should remain on the clients, the firm should pay attention to growth through the introduction of new legal matters, as well as a focus on profitability. A firm would do well to systematically reach out to potential clients, and referral sources through business development activities. Firms would be able to benefit their client as much as possible, which would in turn provide the greatest profitability for the firm.

Provided that a firm’s management decides to manage the firm like a business, they must consider a key element. The ability to develop and use metrics. The firm’s management would need to clearly identify which areas of law were most profitable, as well as which lawyers participated in the largest monetary gains. Inversely, those areas and attorneys seen as underperforming would need to be identified. In concert with the law firm’s strategic vision, metrics could aid the firm to reach the highest profits through the pursuit of a business model.

Given the success of those firms who have already chosen this path, many others should soon follow suit. I suspect that upon realizing they can continue to serve their clientele to their greatest potential leaders in management will rise to the task with vigor. I find most curious that most firms do not view themselves are businesses; in providing services, albeit legal ones, they are participating in a commercial transaction. Thus, I believe it only natural for the firms to manage as businesses for the benefit of its customers, and the sake of the legal firm.

Marisol majors in finance and philosophy at the Stillman School of Business, Seton Hall University, Class of 2020.

Sources:

https://www.forbes.com/sites/russalanprince/2018/01/29/how-to-dramatically-increase-law-firm-profitability-by-running-the-firm-as-a-business/#5fc6a2d2bd61

Posted by Deana Curis. 

Mattress Firm has been known as the largest mattress chain in America for several generations. However, it seems that this time is coming to an end. Traditional means of purchasing mattresses are slowly diminishing as online shopping has become more and more popular. Consequently, Mattress Firm has run into the need to file for Chapter 11 bankruptcy. Mattress Firm claims that they will still have timely deliveries and continue to pay suppliers in full, as Chapter 11 bankruptcy allows for companies to keep businesses active while they pay back creditors. The filing of Chapter 11 bankruptcy will ultimately allow Mattress Firm to try and fix the downfalls in their company that had previously prevented them from success.

Again, the availability of online shopping has caused several companies to file for bankruptcy. Brookstone, Nine West, and now even Sears have needed to file for bankruptcy due to “online culture”. In terms of the mattress industry, online platforms, such as Amazon, have put Mattress Firm and other mattress companies at major risk. However, Mattress Firm faces many more issues that prevent them from prosperity. The existence of multiple locations in close proximity to one another is a large matter in question for the company. Luckily, Chapter 11 bankruptcy is frequently used to “reorganize” a corporation, and this is exactly what Mattress Firm plans to accomplish by filing it as well. For example, the company plans to reorganize by closing down seven hundred locations that are in close proximity to others by the end of this year alone. The company also claims that they will use the money that is saved by closing locations in order to overall improve the brand as a whole.

Universally, it is evident that more and more physical stores will be obligated to shut down due to online trends in today’s society. The mattress industry began to plummet with the closing of Sleepy’s, and is now continuing with the filing of bankruptcy from Mattress Firm. Yet, it is not solely the mattress industry that is being damaged by online shopping, but retail and other corporations as well. It is interesting to think about what this may propose for the future of shopping as a whole, and the amount of companies that may also need to file for bankruptcy as a result.

Deana is marketing major, pre-dental track at the Stillman School of Business, Seton Hall University, Class of 2021.

Works Cited
“’A Wake-up Call for Traditional Mattress Chains’: Mattress Firm Files for Bankruptcy.” The Washington Post, WP Company, 5 Oct. 2018, www.washingtonpost.com/business/2018/10/05/wake-up-call-traditional-mattress-chains-mattress-firm-files-bankruptcy/?noredirect=on&utm_term=.c16972a2522b.

Posted by Leigh Ann Rofrano.

In 2003, a class action lawsuit was filed against Ticketmaster, entitled Schlesinger v. Ticketmaster. The lawsuit claimed that Ticketmaster “failed to fully disclose to consumers all aspects of its UPS and order processing fees” (Ticketmaster). Ticketmaster settled the case in 2013, but the courts did not grant the final approval of the settlement until early 2015. The settlement includes all customers who purchased tickets on Ticketmaster’s website between October 21st, 1999 and February 27th, 2013.

As a part of the settlement, all class members were eligible to receive discount codes or ticket vouchers. Each class member was given a discount code worth $2.25 for every purchase they made during the class period. Class members who used UPS delivery during the class period were provided with a $5 UPS discount code for each purchase that included UPS delivery. Additionally, each class member was given one ticket voucher (which was redeemable for two tickets for an event at a Live Nation venue) for every purchase made during the class period on Ticketmaster’s website.

I choose to research and discuss this case because it is extremely relevant in my life. I am a frequent Ticketmaster and Live Nation customer, as I attend many events every year. The lawsuit was filed against Ticketmaster due to its ridiculously high order processing fees that are tacked onto every ticket. As a Ticketmaster customer, I agree and can attest to the fact that when browsing tickets for events, the magnitude of the order processing fees in not clearly outlined; it is not until you are in the checkout process that you are fully aware of the fees. I was notified through email this past summer about this lawsuit and the discount codes and vouchers in which I was entitled. Many customers were quick to complain that Ticketmaster acted unjustly in notifying customers about the settlement and the class members’ potential benefits. I agree with this argument on the basis that I too was notified of my voucher and discount codes after all of the eligible tickets had been already claimed. I feel Ticketmaster should have notified customers of their vouchers and discount codes sooner, in an attempt to give all class members a fair chance at receiving free event tickets from their vouchers. Overall, I do appreciate the small compensation that was provided to me from the lawsuit, since it is extremely rare to receive discounts on Ticketmaster.com, but would have liked to have been notified earlier and provided with more details about the settlement sooner.

Leigh Ann is a marketing and management major at the Stillman School of Business, Seton Hall University, Class of 2021.

Article Links:

https://insider.ticketmaster.com/frequently-asked-questions-schlesinger-v-ticketmaster/?_ga=2.76895829.1994249424.1539478038-1512211698.1510348971

http://www.ticketfeelitigation.com/

Posted by Thomas DeFrancesco.

South Dakota has a state tax for sales of goods and services that are made by retailers of the state. Out-of-state retailers were making sales to customers in the state of South Dakota and not collecting and remitting sales tax in South Dakota. However, these retailers are allowed to do that based on the ruling made in Quill Corp. v. North Dakota, 504 U.S. 298 and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U.S. 753. The state was worried they were losing funding due to out-of-state retailers not collecting and remitting the South Dakota’s sales tax. To solve this concern, South Dakota created a law that commanded out-of-state retailers who make more than 200 sales transactions and at least $100,000 in revenue from those sales to collect and remit sales tax as if they were located in South Dakota. Companies who met those requirements failed to follow the newly made law so the South Dakota legislature brought the issue to court.

Should the respondents have to register for licenses to collect and remit the sales tax regardless if they are physically present in the state or not?

South Dakota law is permitted to tax sales from sellers who are outside of that particular state as long as the seller collects at least $100,000 in sales revenue or more than 200 sales transactions.

The court derived its reasoning from other cases including Quill v. North Dakota and National Bella Hess v. Department of Revenue of Ill. The court explained how the physical presence rule in Quill v. North Dakota is “unsound and incorrect.” Since the internet has such a great impact on business, retailers who do business through the internet must pay taxes in that particular state of the sale. Therefore, the Quill v. North Dakota reasoning is no longer relevant.

Thomas is a finance major at the Stillman School of Business, Seton Hall University, Class of 2021.

Source:

https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf

Posted by Justin Cunha.

The federal government’s rollback of many different rules has been a highly discussed topic throughout media, however one of the topics that is truly standing out currently is net neutrality. Net neutrality is a principle in which internet services have to treat all data equally and not charge consumers for any specific data. This was put in place by the Obama administration but was removed last year. The event created a lot of outrage as “more than 20 states” have challenged this decision in court (Kang). On Friday August 31, 2018, California lawmakers passed a bill that guaranteed full and equal access to the internet and is the fourth state to create a new net neutrality law.

The state put the bill in place in order to block internet services from slowing down, blocking, or charging for specific services. The bill not only reinstates net neutrality, but it is also even stricter than the one put in by the Obama Administration. The bill would prohibit promotions of free streaming for apps, something that telecommunication companies are pushing to endorse. Prohibiting the promotions would put businesses on a more even playing field, as there are many business who simply do not have the resources to put out these promotions. The change would also ensure that streaming websites all put out the same speed and quality without charging an extra price. These changes are all in an attempt to restrict the amount of power these services have over consumers and the industry. This would be California’s second major internet law in the last year, recently creating a privacy law that allowed users to ask companies such as social media platforms what data they are collecting on them. California is very influential to the rest of the world, with New York already considering a bill similar to this one. One example of the influence the state has was its auto emission laws which inspired many other states to follow in their direction, and in turn giving telecommunication companies worry that something similar will follow.

Though telecommunication companies are attempting to challenge this decision. The companies feel that having these strict rules put on them would hinder their ability to grow and develop. For example, the strict rules will hinder these companies from trying out different business models and thus hurts innovation. Such is the example with the promotion of free streaming for apps, as this was one major experimentation that these businesses wanted to try out. President of US Telecom even argues that, “The internet must be governed by a single, uniform and consistent national policy framework, not state-by-state piecemeal approaches” (Kang). This quote emphasizing that these telecommunication companies want to flow the singular federal law and that these states are simply complicating their business. The companies even went out to promise that they would not slow down or block any websites, a major concern that many consumers had. Telecommunication companies, just like California, do have a lot of influence and power that could possible stop this bill from being implanted. In 2017 they blocked a state broadband privacy bill and are looking to do the same with this bill.

Governor Brown has until the end of September to make his final decision on the matter, and sign his name on the bill. The bill is heavily consumer friendly attempting to give everyone equal access to the internet. This does restrict some freedom of these telecommunication companies, however some restrictions need to be put in place. Power can corrupt and promises can be broken, thus giving these companies too much power can be a scary prospect. So even though there are some flaws with this bill, since it is one of the strictest net neutrality bills, I do believe that California is making the right decision.

Source: https://www.nytimes.com/2018/08/31/technology/california-net-neutrality-bill.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

Justin is an accounting major at the Stillman School of Business, Seton Hall University, Class of 2021.

Posted by Samantha Staudt.

One in five Americans have reported that they have skipped medicine doses or failed to fill a prescription each year because of the cost of the medicine.  This statistic is outrageous and states have to start doing something about it because the federal government will not.  Certain states, like Nevada, have passed a new law that manufactures must disclose more information about why drug prices are rapidly increasing.  In the past few year, prices in Nevada have increased as much as 325 percent, so this law will help regulate the prices of prescription drugs.  Maryland provides another example of steps that must be taken in an order to regulate drug companies.  The attorney general sued generic drug manufacturers whose prices rose more than fifty percent in a year.  States are partly responsible for the funding of the Medicaid program, spending more than 20 million dollars a year on prescription drugs for public employees and prisoners.

Drug manufacturers have recently pushed opioids while denying and misunderstanding their addictiveness.  This may be enough to cut the political power of the pharmaceutical industry.  This statistic is not settling well with anyone and more than 100 states have filed lawsuits against pharmaceutical companies related to tobacco.  This is in an effort to recover the costs of dealing with the epidemic of addiction and overdoses.  Oklahoma’s attorney general, Nolan Clay, is making strides to fixing this rising issue by refusing to accept donations from drug companies.

Of course, pharmaceutical companies fight the big changes that would affect the company.  The industry has been at the top of the lists for lobbying expenditures and campaign contributions at the same time managing to block reform proposals.  During Nevada’s fight to lower drug prices, drug companies hired more than seventy lobbyist to descend on the bill.  When state drug pricing bills pass, the drug industry challenges them in court.  There have been several lawsuits filed, but none have succeeded yet.  In order to prevent drug companies from overpricing prescription drugs, states must enforce regulation laws immediately.

Samantha is a finance major at the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Elizabeth Win.

Dollar bills might as well be worth as much as computer paper now. Cryptocurrency has been on the hot seat for the past few months because of its financially growing nature and easy accessibility. Now, as we are starting to see a slow downfall of people investing in Bitcoin; the I.R.S. is starting to detect serious problems with the millennial choice of currency. One of their main concerns is that this cryptocurrency fad has created another giant, financial bubble. If this bubble were to burst, this Bitcoin “bust” could wipe out millions of spectators leading to a huge loss in tax revenue.

A main contender to this potentially huge loss is Bitcoin’s anonymity. For those unaware, Bitcoin’s underlying technology, blockchain, thrives on anonymity. When a person makes a transaction, the transaction only links through an electronic address, making blockchain more attractive to buyers. Now, the I.R.S. has many problems with this missing identification of creative transactions. The anonymity fuels the underground economy, a significant factor in the source of lost tax revenue. Most of the underground economy is conducted through cash transitions; however, what the I.R.S. fears is that cash will slowly transition to cryptocurrencies because of its convenience. An anonymous buyer of bitcoin can easily pay fewer taxes by cheating the cryptocurrency system – also known as major tax evasion. The solution? The government might have to accept the hardships of directly taxing cryptocurrencies and raise tax rates in order to offset the loss of revenue. Understand that the public would highly disagree with this solution, they generated a smarter response: a switch from taxing income when it is received to taxing income when it is spent. Although this switch would require a “major overhaul of the tax code,” many economists support this decision and believe it is future of the economy.

On the contrary, the I.R.S. understands cryptocurrencies offer major reductions in the cost of financial transactions, making it very appealing to the lower classes. There would also be less reliance on banks, which would increase the power of the Federal Reserve to control money. However, the opportunities are too great for tax evasion and illegal operations that the I.R.S. cannot continue to allow it. Although the cryptocurrency economy is growing steadily, it will need to find a way to prevent tax evasion while preserving anonymity in order for it to survive and stay attractive to buyers. For cryptocurrencies to be successful, societies will have to learn to trust the government, a very difficult task for many to grasp. With the rise of extremely advanced technology, it is inevitable that the economy will eventually transition to the cryptocurrency movement. Figuring out how to smoothly transition from worthless green pieces of paper to slick, glassy pieces of technology worth thousands of dollars each, the challenge to adjust will be difficult by eventually necessary.

Elizabeth is a marketing and information technology major in the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Hailey Arteaga.

One of the biggest businesses in America is college sports.  Men’s Basketball is the second highest grossing sport of colleges across the nation.  According to Business Insider, a Division 1 Men’s Basketball teams alone drive-in an average yearly revenue of $7,880,290 (Gaines).  With this much money being streamed to a school each year for a single sport, some critics of the NCAA believe that Division 1 players should receive a salary.  However, some schools took this idea to the next level.  In a recent scandal, the FBI uncovered around 25 D1 colleges committing acts of bribery and corruption in the sport of basketball in an article written by the New York Post (Masisak).  One college under fire for violating the NCAA rule is Seton Hall University.  Recently though, the University has argued that they “have nothing to hide” (Braziller).  So, who is in the wrong?  This post serves as an analyzation of Seton Hall’s past and the basketball allegations that might hurt the business of the athletics department.

The NCAA defines an “eligible” athlete as one that does not accept outside payments because of their athletic status.  This extends to a professional agent bribing players with food, rent, cash, etc.  (Athnet).  Seton Hall was named as one of the schools by the FBI. They reported that the university was paying now New York Nets player, Isaiah Whitehead, extra money to play for the Pirates.  Agents discovered a spreadsheet with players past and present from multiple universities indicating the amounts of money they were being paid to attend and play basketball at their schools.  The spreadsheet revealed that Whitehead in particular received $26,136 his freshman year and was “setting up a payment plan” (Braziller).  This would go against the NCAA rules of amateurism as stated previously.  In more recent news however, The Hall came out and stated that they will be bringing in New York City law firm, Jackson Lewis P.C. to disprove the corruption scandal (Braziller).  Kevin Willard noted regarding the development that “I have a lot of confidence in my staff and ourselves in what we’ve done in the past.  I’m glad the school moved quickly on this so we can move on from it.”  With such a strong assurance of the team’s actions, Willard and the university should be expected to move on from the situation unscathed.

If Seton Hall were to be found guilty of the corruption, it would greatly affect the basketball team and success of the athletic department.  It could potentially risk the Hall’s ability to compete in the NCAA tournament.  The payout for the 2017 NCAA tournament that Seton Hall earned for the Big East Conference last year was $1,711,784 (Kesselring).  This means that not only would an inability to compete in the tournament affect the university itself, but also it would affect the entire Big East Conference.  Some even argue that Seton Hall could risk their 2016 Tournament Champion Title or even Kevin Willard’s position as head coach.  In the end, Seton Hall is risking a lot putting their name in the forefront of one of the biggest, recent scandals to rock college basketball.  If found that they have been giving players money under the table, the university will immediately face heavy financial cuts due to their disobedience of NCAA rules, hurting other sports, other schools, and the entire conference.

Hailey is a student at the Stillman School of Business, Class of 2020.

Sources:

http://www.businessinsider.com/college-sports-revenue-2016-10

https://www.athleticscholarships.net/ncaa-loss-eligibility-payment-agent.htm

https://nypost.com/2018/02/24/analyzing-how-scandal-will-affect-ncaa-tourney-coaches/

https://nypost.com/2018/02/24/seton-halls-plan-to-prove-innocence-in-fbi-corruption-probe/

https://herosports.com/ncaa-tournament/how-much-money-ncaa-tournament-earned-conference-2017-basketball-fund-a7a7

Posted by Dan Lytle.

David Ganek, the former owner of a hedge fund in Greenwich, Connecticut, had lost his business in 2013, three months after an FBI investigation took place for alleged insider trading. Two years later, in 2015, Ganek attempted to sue the FBI for $400 million, citing “lost income and lost business reputation.” The reason Ganek went through with the lawsuit is because he did not believe it was fair to investigate his office when he was not involved with insider trading. However, the Second Circuit panel disagreed, saying, “there was at least a fair probability to think that his office was a place where evidence of an insider trading scheme would be found.” While some evidence was found to hold against Ganek, he was not ultimately charged for anything. Ganek still does not believe this was right to do, since it cost him his business. He said of the situation, “’this is a dangerous day for private citizens and a great day for ambitious, attention-seeking prosecutors who are now being rewarded with total immunity even when they lie and leak.’” Just recently, it was announced that Ganek had lost this case against the FBI.

In my opinion, the FBI was acting both legally and morally in searching the office of David Ganek for insider trading evidence. From a legal perspective, the FBI searched the office because they had reason to believe there was evidence present in order to uncover a larger insider trading scheme. Furthermore, morally, the FBI acted correctly, as their search aimed to crack down on insider trading. While I do believe that it is not right that FBI agents can be rewarded with immunity when investigating businesses, this is an exception, as the investigation of this “hedge fun and others sent shockwaves through Wall Street’ and led to the indictment of investment bankers and traders.” Therefore, while Ganek was not necessarily guilty of insider trading, the FBI was able to use information found throughout the raid of his hedge fund that led to the arrests of others, which is a crucial factor as to why Ganek lost this lawsuit.

Speaking legally, the FBI was protected under Amendment IV of the Constitution, which protects citizens against unreasonable searches and seizures. However, in this case, the FBI had probable cause to search Ganek’s hedge fund, as they believed that Ganek’s hedge fund was involved with an insider trading scheme. While the Fourth Amendment states that nobody can be unreasonably searched, it also mentions that “upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, persons or things [can] be seized.” In short, while Ganek did not agree with the ruling because he believed the FBI was granted “immunity” for searching his office and causing his hedge fund to fall apart, the reality is that the FBI acted legally according to Amendment IV.

Dan is a marketing major at the Stillman School of Business, Seton Hall University, Class of 2020.

Sources:

http://news.findlaw.com/apnews/53ca32d894c44c5ea64185ab462b6e72

https://www.billofrightsinstitute.org/founding-documents/bill-of-rights/

Posted by Brennan Smith.

A judge, a deputy constable, and a supervisor of all police, fire, and emergency operations walk into a bar…

Although a common play on the setup of a hysterical joke, the indictment of John I. Waltman, Robert P. Hoopes, and Bernard T. Rafferty is not something the members of Bucks County and Lower Southampton Township are laughing about. The three men named are the judge, supervisor, and deputy constable—respectively—referenced above, who just got indicted for money laundering.

Here’s what happened: “The trio conspired to launder about $400,000 in funds represented by investigators to be the proceeds of health care fraud, illegal drug trafficking and bank fraud, according to a federal court indictment unsealed Friday morning, a statement from the U.S. Attorney’s Office said. The men allegedly took laundering fees of $80,000,” (theintell.com). In order to launder the money, the trio went through a series of processes. One source of revenue, and by far the most prominent one, was through Raff’s Consulting LLC—a company with which Rafferty had full control—with which the three used “bogus documents” in order to turn a profit.

To understand how they did this, the facts of the case must be examined. Per the research done by theintell.com, Robert P. Hoopes would arrive to an office building in an unmarked Lower Southampton Township Police car, exchange the false documents for $100,000 cash, and bring the money back to the car (where John I. Waltman and Bernard T. Rafferty would be waiting). From there, Waltman and Rafferty would go to the Philadelphia Credit Union to deposit the money—after paying Hoopes and pocketing their own cuts—into the Raff’s Consulting LLC accounts. The operation lasted from June 2015 to November of 2016 with the trio laundering $400,000 between June and August of 2016—earning $80,000 in laundering fees (Philadelphia.cbslocal.com).

Because of their crimes, the FBI was forced to get involved and finally caught them in an undercover sting. The three will each face one count of conspiracy to commit money laundering, and three counts of money laundering. District Judge John I. Waltman has been suspended without pay, with the other two removed from their positions.

Brennan is a sports management and marketing major at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

http://www.theintell.com/news/crime/bucks-county-district-judge-constable-lower-southampton-public-safety-director/article_f23e17b6-f07a-5e1b-8abb-6edf11a47ecc.html

(Article)

http://philadelphia.cbslocal.com/2016/12/16/authorities-judge-director-of-public-safety-deputy-constable-charged-with-conspiracy-money-laundering/

(Article)

Posted by Michael Del Piano.

When people hear the word CPA, they think of an accountant that is normally behind a desk working on some taxes. However, this was not the case for Ronald L. Durkin. Durkin was not your ordinary accountant. Instead, he was an FBI agent that was working undercover to establish a business relationship between a crime ring and Durkin’s fake accounting firm. Durkin came into the face of danger early on in his investigation. When he was undercover eating dinner with some of the criminals, he accidentally pulled out his personal credit card to pay the bill. Luckily for him, he was able to get out of it by yelling at the waiter and accusing him of incorrectly charging them. This would not be the last time that Durkin would find himself in danger. On another occasion, Durkin was on SWAT duty and engaged in a fire-fight. After a great carrier, Durkin left the FBI to work in the private sector. Durkin worked for Arthur Andersen and then later was the partner in charge of fraud and misconduct for investigation for KPMG.

Another individual that did not follow the traditional path of traditional accountant was Letha Sparks. Sparks is well-known for her work of investigating a $100 million fraud involving life insurance policies. A&O Resource Managements Ltd.’s owners did not pay the premiums on the life insurance policies. Instead, they used the money to buy fancy cars and multimillion dollar homes.

Generally, people do not see accountants as crime fighters. However, forensic accounting has been widely used to catch white collar criminals. Accounting is one of the five “FBI Special Agent Entry Programs” that qualify an individual for possible employment. In fact, the FBI employs around 700 CPAs as special agents. They even have 600 forensic accountants employed. Another interesting fact is that not all of these forensic accountants that work for the FBI are CPA’s.

CPA’s and accountants greatly help the FBI catch criminals. I personally believe that it is important to let other people know the different kinds of roles that accountants can play. You do not always have to follow the traditional path of accountants and sit behind a desk doing taxes. There are other options available and the world needs forensic accountants to help catch criminals.

Michael is a graduate student in accounting with a certification in forensic accounting at the Feliciano School of Business, Montclair State University, Class of 2017.

Posted by Ismail Surakat.

This is a case between Southern District of Georgia and Vania Lee Allen, a native of Jamaica, who committed a fraud and falsely impersonating a United Sates FBI special agent in connection with an international lottery fraud arrangement based in Jamaica. According to the indictment, 30-year-old Vania Lee Allen was charged for conspiracy to commit wire fraud and also, impersonating United States employee. Allen and her co-conspirator from Jamaica illegitimately enriched themselves through fraudulent lottery plan, targeting elderly residents of Evans, Georgia.

According to this case, Allen traveled from Jamaica to United States in May 2015 and presented herself as an FBI special agent in order to convince her victim. Though, before getting to this stage, Allen had made some movement such as informing the victim by phone that they had won money in a lottery game and instructed them to make some certain payments to her co-conspirator in Jamaica for them to collect their lump sum winnings. She also discussed with a co-conspirator in Jamaica on how to impersonate an FBI using a fake law enforcement badge with the “FBI” logo and the words, “Federal Bureau of Investigation.” Upon arrival at the victim’s place, Allen presented as an FBI special agent and asked the victim to speak on-line with her co-conspirator in Jamaica. All of this was made to look real; no doubt elderly citizens can fall victim to this type of  fraudulent act.

The case was investigated by the U.S. Postal Inspection Service and the Columbia County Georgia Sherriff’s Office, and is being prosecuted as well by Trial Attorney Clint Narver of the Civil Division’s Consumer Protection Branch and Assistant U.S.  Attorney Troy Clark of the Southern District of Georgia.

If Allen is eventually convicted, she faces up to 20 years in prison for the wire fraud, five years for the conspiracy count, as well as, up to three years for the false impersonation count.

Ismail Surakat is a pre business major at Seton Hall University, Class of 2019.

Posted by Renaldo Nel.

Judge, Sheri Pym, of the United States District Court for the Central District of California, recently ordered Apple to assist the FBI in an investigation involving the San Bernardino terror attacks. The Apple iPhone belonging to one of the shooters, Syed Farook, was recovered by the FBI. The FBI wants to gain access to the iPhone, but faces security software that will wipe the iPhone’s memory after 10 incorrect password attempts. As a result, the FBI wants Apple to provide them with software that will enable them to unlock Farook’s iPhone, as they believe there is possible evidence on the phone.

Apple has appealed the decision made by Judge Pym stating “writing code is like speech, and so the request is a violation of Apple’s First Amendment rights.” Apple also argues that the government should not have the power to order a private company to alter its product. Apple wants to protect their consumers as they believe that creating a backdoor in the software compromises the security of all iPhone’s, including, iPhone users’ personal information, such as bank accounts and medical records.

The Department of Justice’s argument is that “it a single request for a single phone, and doesn’t not create a back door for bad actors, but rather a front door for law enforcement only when it has a warrant.” The Department of Justice is basing its argument on the All Writs Act of 1789. Apple believes that this law can simply not be applied in modern times and is long overdue for amendment.

Many tech companies such as Microsoft, Facebook and Google have stated that they support Apple. I am also in support of Apple. Firstly, it is known fact that the FBI has been hacked in the past and the probability that the software that the FBI is asking for will be leaked is huge. It would be catastrophic if hackers could get their hands on personal information such as credit cards in the Apple Pay function. Secondly, one should also take into account that people place faith in Apple to protect their personal data and if Apple is forced to provide this “unlocking software” they could suffer huge financial losses. Furthermore, if Appel loses this case it sets precedent in the tech industry and companies would in future be forced “to modify their products, on spec, for the FBI in ways that are contrary to their core values.”

I understand that the FBI wants to solve the case and protect the country, however their proposal opens the door for many other evils.

Renaldo is an economics major at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

Apple V. FBI Encryption Case Shows That Lawsuits Are Inherently Polarizing

http://www.abc-7.com/story/31521736/apple-vs-the-fbi-in-2-minutes

Posted by Michael DeCandia.

The people support our government. The FBI is trying to keep our country safe from the terrorists that surround the world.  The FBI was trying to work with Apple to get the shooters phone so that the FBI would be able to access the password/information they needed to find where the shooter might be going next or where his next target might be. In the article, Why Apple vs. FBI Might be the Worst Cybersecurity Dilemma Ever states, “Apple argues that the FBI is imposing unfair burden on the company and is violating its right to freedom of speech.” In Apple’s eyes it may be an unfair burden, but the FBI is irritated that Apple will not work with them to stop an event from happening against the United States. Silicon Valley was scared that the FBI would over rule the tech industry and companies would not be able to protect their future products.

Individual devices and our national security are very important things when helping protect in the United States. The NSA and other organization like the CIA or the FBI are designed to keep the nation safe from any attacks. If this event were to happen in the future with a more serious group of dangerous people how would the people feel about their safety? In the article Why Apple vs. FBI Might be the Worst Cybersecurity Dilemma Ever states, “The US government has helped develop and spread user-friendly encryption technologies for precisely this reason.”

Criminals may feel safer that they will never get caught communicating, but for right now this is the best option for the people. By working together with technology companies the government can stop more criminals lurking on the Internet today. The more the people in our country work together, the more we can accomplish to make our country a safer place.

Michael is a marketing major at the Feliciano School of Business, Montclair State University, Class of 2018.

Posted by Andres Garcia.

Following the explicit shooting in San Bernardino, California, the FBI insisted Apple create a software that would aid them in their process of investigation. The proposed software would be inserted into the iPhone device belonging to one of the suspects in the mass shooting. The FBI asked Apple, Inc. after they could not guess the shooter’s password.

Apple, Inc. opposed the request and did not want to search their servers for the correct password. However, on Tuesday February 16, 2016, the court ruled that Apple must assist the FBI by handing out such private and confidential information. The decision enraged Apple CEO, Tim Cook, he stated that the verdict would invade the privacy of Apple customers.

I would definitely agree with Apple CEO, Tim Cook; the government ruling will greatly affect many personal lives. The decision may be unethical. I believe the government was in favor of the FBI. The court only looked at how the decision will positively affect the FBI at the moment. However, there can be harsher repercussion for individuals in our society. By granting the FBI permission to search someone’s data and information, the US government is essentially attacking a person’s privacy and security. The decision will sooner than later lead to more hackers infiltrating our personal devices.

Andres is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2019.

Posted by Abul Hasnat Juned.

Apple Inc. and the U.S. government are headed to court because the government is trying to force Apple to hack into the iPhone of the dead San Bernardino attacker, Syed Rizwan Farook. The reason why the government’s wants to access Farook’s phone is that it may contain evidence regarding the San Bernardino shooting in which he killed 14 people.

Investigators are trying to find out what happened and also if there were any other collaborators from ISIS. Last month, Magistrate Judge Sheri Pym ordered Apple to create software to help the FBI disable security features on the phone. Also, the magistrate judge ordered Apple to make software that erases all the information from the phone if a password is wrongly entered more than ten times. If Apple creates such software, the FBI would be able to electronically run possible combinations to open the phone without losing data.

On the other hand, Apple risks losing business if they help the government in unlocking phones, because it would undermine the privacy of its customers. Apple wants to show that they are true to their customers. By taking a stand, they might bring in more consumers. There is also another risk for the Apple Company in unlocking the phone because phones could possibly be accessible to hackers and other countries. Companies, such as, Facebook, Google, Yahoo, and Microsoft are offering their support for Apple and using it as a market strategy to gain respect from the public.

Cindy Cohn, executive director of the Electronic Frontier Foundation, said, “It’s too much for the government to conscript a company into writing code that undermines the security of the products they sell.” While the government says that Apple has helped them to extract data from such phones at least 70 times for law enforcement, Apple says the government is trying to force them to create a software that does not exist. Apple is arguing that the government is violating the company’s constitutional rights by threatening the privacy of its customers. Apple is taking a stand not only for their customers’ privacy, but also for the company’s profit because if they help the government to access the phone, their business profits would rapidly drop.

Abul is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2019.

A district court judge has ordered Apple to unlock a cell phone used by one of the shooters in the California massacre. Apple is fighting the order, claiming that doing so could make it easier to for anyone to hack into phones.

Apple has secret keys that can open up the software that it will not give to the FBI. The FBI also wants Apple to create a program that will permit it to hack into phones at anytime. The problem lies with a toggle in “Settings” that will make the phone delete all information on it if someone fails to put in the right passcode more than 10 times. This would make it impossible for the FBI to use a program that can guess random codes.

The case has Fourth Amendment implications for various reasons, including conscripting a private entity to become a government agent.