Los Angeles will pay 24 million dollars to two men who spent decades in prison for crimes they did not commit. In one case, lawyers and a team of students from Loyola Law School challenged a key witness’s testimony. In 1979, Kash Delano Register was charged with the armed robbery and murder of Jack Sasson, 78, after eyewitness testimony placed him at the scene at the time of the shooting. The witness told police she heard gunshots and she saw Register fleeing the scene. The witness selected Register out of a photo lineup, but her sisters told police that her story was untrue. No murder weapon was recovered and no fingerprints were found. Based solely on this witness’s testimony, a jury found Register guilty and he spent 34 years in prison.

The witness’s sister testified she tried to tell a detective that her sister had lied, but in response, the investigator allegedly put a finger to his lips indicating she should keep quiet about it. Her other sister told the police that she was lying, but even her pleas were ignored. Register’s attorneys claimed that the witness selected him under the threat of being prosecuted for credit card forgery and a recent theft if she failed to choose someone out of the lineup.

In the other case, Bruce Lisker was accused of murdering his mother. “At the time of the murder, Lisker, who had a reputation for fighting with his mother and a history of drug abuse, told police he saw her lying in the foyer and broke into the home to help her. They did not believe him.” During a hearing challenging the conviction, lawyers undermined or disproved key elements of the prosecution’s case, including that a bloody shoe print that could not have been made by Lisker’s shoes. His attorneys claimed “that the lead detective ignored evidence that Lisker’s friend may have been a possible suspect.”

In every arrest and criminal prosecution, someone’s liberty is at stake, and these cases illustrate the importance that prosecutors and police get it right. Money can always be replaced. But no one can ever get back all those years lost in prison, as a result of being falsely accused.

Posted by Nadia Haddad.

Throughout the article, “Intellectual Property,” the author Darren Dahl talks about four different common fallacies that small business is unaware. The two most precious resources for any small business owner are time and money. Small business owners believe that it is not worth the time or effort to secure intellectual property rights. A patent can cost up to $25,000 to secure, in comparison to trademarks and Web addresses, which are cheap and can be obtained with the help of a lawyer.

In one case, Daniel Lubetzky, chief executive of New York City, Kind Snacks, heard that one of his competitors had copied the packaging, look, and feel of his bars. Lubetzky had secured components for his property like trademarks, trade dress, and Web addresses after founding his company. Mr. Lubetzky sent a competitor that was stealing his IP a cease-and-desist letter in order to stop the offender.

The above example stresses the erroneous belief that “once I get a trademark, my brand is safe.” In another case, Tracey Deschaine, who runs a restaurant called Dixie Picnic in Ocean City, N.J., secured trademarks, logo and name of her signature item, cupcakes. Even though she had trademarks for her business, someone else was monitoring the activity on the United States Patents and Trademark Office’s website and her spotted her application. They secured the Web address, or URL, before she could. This shows that, just because you have a trademark, it does not mean you are completely protected.

The third topic mentioned was about how “having a patent gives me the right to produce something.” What a patent does is gives you the right to prevent someone else from producing what your patent covers. Mr. Kocher of Cryptography Research says, “having a strong IP position helps ensure that other pay you for your innovation like they would on a toll on a road.” (Dahl).

Another fallacy mentioned is “If I have a patent or trademark in the United States, I don’t need to worry about the rest of the world.” In some countries, like Japan, it is expensive to acquire patents. The author suggested when deciding what your international IP strategy should be, consult a lawyer, and conduct some cost-benefit analysis to see if expanding your IP rights makes proper sense.

The last fallacy the article states “people who collect patents but don’t actually make anything are ‘patent trolls.’” In many cases, companies invent something, obtain a patent, and license it out for manufacturing by another. An example described was how a patent for wireless e-mail delivery held by NTP, a small holding company, something that R.I.M eventually would pay millions of dollars to license from them. The problem with this was NTP was trying to enforce its patent when it did notmake any products itself from the beginning.

Nadia is a business administration major with a minor in international business at Montclair State University, Class of 2016.

Hacking into computer systems is nothing new, and government and businesses alike have always been aware that they must be one step ahead of computer criminals. But the attack on Sony Pictures Entertainment was more than that. It was a shot across the bow in what appears to be a potentially rampant future form of warfare. As a result, every cyber attack on government or business systems must now be carefully examined to see whether it is either criminal or an act of war.

In the face of evidence from the FBI that North Korea was responsible for the Sony attack, senior Republican senators disagree with the administration that it was only a form of “cybervandalism.” Sen. McCain stated this attack “is a new form of warfare, and we have to counter that form of warfare with a better form of warfare.” Sen. Lindsey Graham called “the cyberhacking ‘an act of terrorism’ and suggested re-imposing sanctions on North Korea and adding the country to the terrorism list.” In 2001, President George W. Bush called North Korea part of the “Axis of Evil,” along with Iran and Iraq.

The FBI concluded the attack on Sony was evidenced by IP addresses directly linked to North Korea. This attack was similar to those that occurred last year against South Korean banks and media outlets. The FBI stated:

We are deeply concerned about the destructive nature of this attack on a private sector entity and the ordinary citizens who worked there. . . . Further, North Korea’s attack on SPE reaffirms that cyber threats pose one of the gravest national security dangers to the United States. Though the FBI has seen a wide variety and increasing number of cyber intrusions, the destructive nature of this attack, coupled with its coercive nature, sets it apart.

North Korea’s actions were intended to inflict significant harm on a U.S. business and suppress the right of American citizens to express themselves. Such acts of intimidation fall outside the bounds of acceptable state behavior.

There will most likely be more cooperation between business and government in sharing information and technology. Only together can this new threat to our national security and economy be defeated.

Posted by Keith Cleary.

A lawsuit has erupted between Exxon Mobile and the state of New Jersey, particularly two industrial sites in New Jersey, Union and Hudson counties, according to the New York Times (Sullivan). The lawsuit, “which has been filed in 2004 and litigated by four administrations, is a $8.9 billion dollar lawsuit.” (Sullivan). The lawsuit is about the contamination that Exxon left on the marshes and forestland, and New Jersey is willing to pay $250 million dollars to clean up the 1,500 acres of petroleum contaminated fields. The $250 million dollars that Exxon offered to pay is not nearly enough to pay the amount it would actually take to clean the fields.

The amount that Exxon offered to clean up the fields, “infuriated environmentalists and a state lawmaker, after experts determined that it would cost billions to clean up the properties in northern New Jersey.” (Sullivan). In particular, the areas that the lawsuit covers are the facilities of the Bayonne and the Bayway sites, where surprisingly, the use of chemical production and petroleum refining goes back to a hundred years. Those years of spills also contributed to the contamination of the lands. “A report compiled for the state by Stratus Consulting of Colorado determined that it would take $2.5 billion to clean the site up, and an additional $6.4 billion to restore enough wetland and forestland.” (Sullivan).

Many people are questioning why the state decided to settle for such a low amount of money. Debbie Mans, head of NY/NJ Baykeeper, said, “I think it’s criminal to settle so low.” (Sullivan). Settling an almost $9 billion dollar lawsuit with $250 million is by far criminal. It is like paying $500 dollars for a $250,000 Ferrari. However, along with making the state accountable for the cleanup of the area, they were trying to “reimburse taxpayers for the years of lost use—the same way a victim of a car accident can seek lost employment wages from the responsible driver.” (Sullivan). So, not only are they trying to make up for the damages but also lost time.

There was also speculation about donations made from Exxon to the Republican Governor’s Association while Christie was chairman of the organization. “The Exxon Mobile Corporation contributed more the $500,00 to the association in 2014 during Christie’s tenure, and $200,00 in 2013.” (Sullivan). Even though all of these contributions were made, apparently none of it had anything to do with Christie being chairman. With the small settlement, it was called into question what it would be used for. Prior to this, Christie’s administration used $130 million of a $190 million settlement with a Passaic River polluter to the state’s general fund.

Keith is a business law student at Montclair State University, Class of 2017.

Posted by Arben Bajrami.

Sweatshops, or a workplace with unacceptable working conditions, have remained a problem up until recent years in business and in our economy.  Companies such as Nike and Adidas have workers in foreign countries sewing and producing equipment, apparel, and footwear for very little pay.  It is said that these sweatshop workers receive something called “living wage,” which is only five hundred dollars a month, or just enough money to survive.

Laborers that work in sweatshops are considered highly unethical.  Also, these items cost very little money to make but sell at outrageously high prices in retail stores.  For example, if it costs Nike four dollars and eighty cents to make a shirt, retail stores often mark up the product for eighteen dollars.

At least certain companies, such as Knights Apparel, are making a conscious effort to raise awareness to the horrors of sweatshops. Knights Apparel works closely with a program called Worker Rights Consortium.  They work “‘to combat sweatshops and protect the rights of workers who sew apparel and make other products sold in the United States.’”

Arben is a marketing major at Montclair State University, Class of 2016.

Posted by Melissa Nomani.

Farmers across the United States are filing suits against Syngenta. As stated in the article, “The lawsuits allege the biotechnology company’s genetically modified Agrisure Viptera and Duracade seeds contaminated US corn shipments, making them unacceptable for export to China.” China does not allow the importation of GMO products that it has not tested. In February of 2014, China learned that the corn shipments from the U.S. contained Viptera. Agrisure Viptera is a seed that is genetically modified (known as MIR162) to prevent damage to crops by earworms and cutworms. As a result, China has rejected corn imports from the U.S.

Over 1,800 suits have been filed. Lawsuits filed against Syngenta state that the company put seeds on the market even though there was no approval from foreign markets. This has led to some farms having great financial losses. Even farmers who do not use GMO seeds could be affected due to accidental contamination from other fields. Syngenta has tried to refute the lawsuits by stating that they are not responsible for protecting farmers from GMO seeds. This arguments were rejected in September by Judge Lungstrum, who refused to dismiss the suits.

It has been estimated by The National Grain and Feed Association that as of April 2014 almost $3.0 billion worth of losses were caused by Syngenta’s Agrisure Viptera MIT162 corn seed.

The first of the lawsuits are expected to go to trial in June 2017.

Melissa is a finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Ola Mohammed Alghasham.

The world encounters cases where frauds are committed by white collar criminals. Executives whom fight against fraud are beneficial for the company. Although the board and management make strong efforts in composing fraud preventing policies, there are several behavioral, environmental, and fraud assessment elements which are ignored during the composition of such policies and their absence provides shelter to the fraudsters. White collar criminals often attain confidence from their role in the organization. This confidence gets transformed into arrogance which prohibits the criminal from applying organizational policies and rules on himself, as an employee of the company.

There is no doubt that the top management always looks for the creative and clever individuals as employees. They forget, however, this creativity and cleverness can be used against the company instead of in its favor. Employees with these traits can cunningly commit frauds by practicing unnoticeable unethical behavior. Companies should execute proper controls with the recruitment of talented people. The tone of top management can either promote or discourage the ethical behavior because it is supposed to set an example for the rest of the organization. The whistle-blowing attitude is shaped by the organizational culture. Moreover, an illogical increase in pay, without any improvement in the performance, allows the fraudsters to continue their unethical activities.

Board members and executives should identify the fraud tactics and fraud hidden strategies of these individuals to compose a fool-proof risk assessment process. Major warnings can appear from the financial data (e.g. unusual, frequent or large transactions), documents with missing or incomplete information or suspicious signatures, poor controls (e.g. lack of monitoring, poor reconciliation of accounts, lack of position to manage conflicts of interest), behavior (e.g. unstable behaviors, mismatched lifestyle with income, high expectations family, and job dissatisfaction). Management must implement strong controls in the day-to-day business operations to avoid fraudulent activities. The board must adopt a proactive behavior in the elimination or early detection of fraud by establishing an audit committee with full authority, monitoring transactions, promoting and maintaining an ethical environment, and composing a procedure for the reporting of fraudulent activities. The board must compose and enforce certain strategies to cope up with the frauds. The executives must develop an ethical environment for keeping the employees loyal with the company and directing the human talent towards the betterment of the company.

Ola is an graduate accounting major with a certification in forensic accounting at the Feliciano School of Business, Montclair State University.

Source:

Marks, J., (2012), A Matter of Ethics: Understanding the Mind of a White-Collar Criminal, Financial Executive, pp. 31-34. Retrieved from www.financial executives.org.

Posted by Rizzlyn Melo.

The car-manufacturing company, Tesla, has been battling with New Jersey government officials for the right to sell their premium electric cars in the state. Tesla differs from other car-manufacturers because they sell their vehicles directly from small, independently-owned sites instead of large dealerships. Many of Tesla’s facilities are actually located in various malls in New Jersey. The issue with this practice is that under New Jersey law, cars can only be sold through registered dealerships. In the article, this legislation “was put into place at a time when small local dealers were perceived as vulnerable to the moves of major national manufacturers.” Because of Tesla, this law has been targeted and challenged by various carmakers and consumer-rights groups. Fortunately, it can be said that their efforts have not gone in vain. In March, Governor Chris Christie signed new legislation that allows Tesla to operate at four sites in New Jersey. Shortly after this was signed, New Jersey lawmakers approved an amendment granting zero emission car manufacturers the right to operate dealerships in the state.

Tesla’s success story in New Jersey shows that the market is modernizing. Legislation that was once effective in the past can actually be disadvantageous in the present day. While the law requiring sales through registered dealerships was once helpful to small businesses, it prevented a company from potentially helping the environment. Tesla only produces zero-emission, luxury cars. They are a company seeking to reduce society’s carbon footprint by introducing a sleek, fashionable car to the market that does not require gas. The government’s initial refusal to allow this company to conduct its business in New Jersey made legislators look like they would sacrifice an environmental advancement for the sake of large dealerships. Tesla’s win in New Jersey represents more than the right to sell cars; it is a win for the evolving market that is in need of environmentally friendly products.

Rizzlyn is a business administration major with a concentration in marketing at Montclair State University, Class of 2017.

Posted by Rizzlyn Melo.

The practice of corruption in any company hurts every single person involved. This is certainly the case with Petrobras, a Brazilian state-run oil company. The corruption that has been associated within the large company has caused it exponential damages and has tarnished the reputations of both business executives and political figures. In the BBC article, it was reported that the company suffered an “overall loss of $7.2 billion” and an impairment charge of $14.8 billion that reflects the decreased value of its assets. These figures represent the first losses the company has suffered in decades.

The unfortunate circumstances Petrobras is currently facing are the results of various criminal activities. One of the most scandalous discoveries made against Petrobras is its members’ involvement in bribery. Bribery can be defined as the unlawful offer or acceptance of anything of value in exchange for influence on a government or public official. Various government officials have been linked to these bribery allegations. Even Brazil’s president, Dilma Rousseff, has endured scrutiny for her alleged involvement. Rousseff was a board member of Petrobras during the time of the illegal activity. Thousands of Brazilian people have protested against their elected president. Later, however, an attorney general of any charges exonerated Rousseff. Another form of corruption Petrobras has been accused of is money laundering, which is the concealment of the origins of money obtained illegally. In this case, money laundering was employed to hide bribes as well as several illegal donations made to political parties.

At least forty politicians are currently under investigation. That number does not even include the numerous business executives that have lost their positions. The criminal activities of this one company have ruined countless lives and has shaken an entire nation. The corruption in Petrobras demonstrates how important business law is in keeping companies such as this in check. Petrobras has lost more trust than profit, and that is something it cannot easily make up.

Rizzlyn is a business administration major with a concentration in marketing at Montclair State University, Class of 2017.

Posted by ZaAsia Thompson-Hunter.

The European Union isn’t happy with Honeywell and DuPont because they believe they are breaking antitrust rules. Honeywell and DuPont are the only two companies that produce the chemical R-1234yf. This chemical is used to produce the only car-coolant that meets the standards on the European Union’s greenhouse-gas emissions. By working together, the European Commission believes that Honeywell and DuPont are limiting the supplies of the coolant sold to other carmakers and furthermore reducing technical development. “The investigation, triggered by French company Arkema SA (AKE), also examined Honeywell’s alleged ‘deceptive conduct’ when the product was endorsed by a car-industry trade group, and whether it charges ‘fair and reasonable’ license fees to rivals who want to produce the product.” This investigation may lead to fines as much as 10% of yearly sales.

DuPont plans to fight against all accusations made by the EU because they feel they have not violated any policies and have been abiding by all the rules and laws that apply. In an e-statement, DuPont says they “will fight this every step of the way, as it has no basis in law or fact.” Additionally, in this ongoing case, Honeywell responded by saying the EU’s allegations were “baseless and conflict with the EU’s own laws that encourage collaboration on development,” according to an e-mailed statement.

ZaAsia Thompson-Hunter is a business administration/psychology major at Montclair State University, Class of 2017.

Posted by Kimberly McNamara.

A former controller of the Hereditary Disease Foundation, a nonprofit group out of New York that encourages and contributes to studies and other research dealing with congenital diseases, has been indicted, this year, for embezzlement of over $1.8 million. The organizations former controller, Karen Alameddine, who was responsible for managing finances from 2005 through January 2014, began “‘to make what in reality were transfers to her personal bank account appear as if they were wire or bank transfers to grant recipients,” according to Manhattan Federal Prosecutors.

Alameddine, who also went by the name Karen Dean, made a fake business called “Abacus Accounting,” “Chez Cheval Ranch,” “Dean & Co,” and “Karen Dean Exports,” to try and cover her tracks. She was not so successful. On November 17 of this year, she was arrested in Boston, and the following day, made an appearance in federal court and is now awaiting a transfer to Manhattan, says The NY Times.

Suspicions were raised when a complaint was made after Alameddine left the nonprofit this past January, stating that an account holder never received their check from the group.

In a statement given by the organization, “this loss was confirmed through internal investigation and a forensic audit conducted by outside legal counsel retained immediately by the foundation. . . . Although the theft was substantial, only a small amount of grant monies committed before 2104 was compromised.”

Alameddine was charged with five counts of tax evasion and one count of wire fraud.

Kim is a business administration major at Montclair State University, Class of 2016.

Posted by Ethan James.

There was a chemical spill into the Elk River, two years ago, that came from a storage tank owned by Freedom Industries. This spill caused a temporary shutdown of businesses within the region around the river, as well as many residents of the Charleston area needing to go to the emergency room with symptoms of rashes and nausea. The damages caused by the chemical spill hurt the local economy and people, so a class-action lawsuit was ensued.

The lawsuit was against Eastman Chemical and West Virginia American Water Co., as through the actions of both companies lead to damages against the people of the Charleston area. “The suit alleged the water company was unprepared for the spill and that Eastman Chemical didn’t advise Freedom of the dangers of the coal-cleaning agent,”(Michael Virtanen). There is a fear that Eastman did not properly warn the water company of the damage to others or how to properly contain it. In addition, the water company was said to be “unprepared for the spill”(Michael Virtanen), in both the damages that were inflicted on the tanks and how to proceed with the consequences of the spill.

The U.S. District Judge John Copenhaver approved a $151 million dollar settlement that involved both companies, splitting the settlement. West Virginia American Water Co. is going to pay $126 million, while Eastman Chemical will proceed to pay $25 million. “The money will be distributed to affected residents and businesses through an application process to be determined later,”(The Associated Press). There has been an update to proceedings within the water company in order to avoid a repeat of the damages that occurred, while the chemical company has placed new regulations on inspections in order to better advise companies of their products.

Ethan is a management, finance, and ITM Majors and legal studies minor at the Stillman School of Business, Seton Hall University, Class of 2020.