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Best of 2013

On the heels of our first year anniversary celebration last month, NJLJ Best of 2013Maragell Corporate Investigations was honored by our peers in the legal community with a New Jersey Law Journal Best of 2013 Bronze medal for Best Expert Witness (Computer Forensics). Voting was limited to lawyers and their professional staffs, making this honor especially gratifying.

Maragell, which comes from the Old Testament word for spy, provides a wide range of corporate investigative services, including computer forensics, background checks, due diligence research, expert witness services, and employee theft and internal fraud investigations.

The Maragell team extends its sincere gratitude to all those who voted BEST-OF-2013-LOGO-(regular)for the firm, and we look forward to providing many more years of superior service and expertise.

First Anniversary Attendees Learn How to Use Investigative Databases

HADDONFIELD, NJ – OCTOBER 10, 2013 – Maragell Corporate Investigations celebrated its first year in business on October 10th with a ribbon-cutting ceremony and interactive community open house. The company, which until 2012 operated as the U.S. office of Intelysis Corp., benefited from an upturn in the region’s economy. “We saw a marked increase in investment activity by hedge fund and venture capital clients, which use our services to conduct background checks on prospective portfolio companies,” said Jeffrey Brenner, Esq., NJLPI, the company’s founder. “Our team was also brought into several complex computer forensic investigations, including theft of intellectual property, bankruptcy fraud, and employee violations of restrictive covenants,” he added.

As part of the open house festivities, Maragell’s staff demonstrated several insider investigative techniques. Team members accepted computer hard drives from attendees and demonstrated how data the users thought was permanently deleted could still be retrieved. Then, using the U.S. Department of Defense data destruction standards, they wiped the hard drives, enabling them to be recycled without fear of data loss or identity theft.

Brenner and his team also amazed guests by broadening their understanding of the power of the Internet, showing that many of the same tools used to locate to locate lost friends and loved ones can be used to track down missing persons, debtors, and witnesses. Similar strategies are also used to conduct pre-employment background checks. Maragell’s researchers demonstrated how these checks are conducted and why they are more of an art form than an exercise in data input/output. Combining multiple sources of public information, investigative databases, social media sites, and Google, together with data provided by the subject (in this case one of Maragell’s employees), the demonstration revealed how a PI reads the tea leaves and assimilates the information to create a complete, and accurate, picture of the subject.

Maragell completed the day with a demonstration on how computer forensic experts hunt for evidence of wrongdoing through the use of keyword searches and deleted emails. Of note was the fact that words such as “non-compete” and “breach” which might be expected to return relevant information about an employee’s plans to violate his or her contract, were shown to appear in many forms and locations having nothing to do with the facts of a case. “Poor keyword choices can cost a client thousands of dollars in eDiscovery costs and attorney review time, and we make every effort to avoid this pitfall with highly strategic searching,” said Brenner.

Not a Secret: Investigators to Celebrate 1st Anniversary

Maragell to Celebrate its One Year Anniversary

Thursday, October 10, 2013

Noon to 7:00 p.m.

Maragell, LLC, will celebrate its first year in business on October 10, 2013 with a ribbon cutting ceremony and open house.  Founded by Jeffrey Brenner, Esq., NJLPI, Maragell is located on Mechanic Street in the heart of the historic borough of Haddonfield.  During its inaugural year, Maragell was fueled by an upturn in the region’s economy as its clients increased their use of its investigative services in connection with their hiring and investment practices.  Maragell was also kept busy with several complex computer forensic investigations through its partnerships with several top-tier accounting firms, eDiscovery vendors, and the region’s major law firms.  In addition to the ribbon cutting ceremony sponsored by the Partnership for Haddonfield a number of special activities are scheduled throughout the day, including free investigative tutorials.

Open House Highlights Include:

Noon

Meet and Greet (and Eat!)

1:00 p.m.

Ribbon Cutting Ceremony by the Partnership for Haddonfield

2:00 p.m.

Keyword search demonstration

Learn how to get better search results

3:00 p.m.

Background check demonstration

Conduct a pre-employment screening with us, live

4:00 p.m.

Deleted email recovery demonstration

See where the data resides on your computer

5:00 to 7:00 p.m.

Networking and cocktails

Luncheon and evening Hors d’oeuvres by
Ludovico’s and Marie’s Sandwich Shop

Desserts by
Hollingsworth’s Cookies and Sweet T’s Bake Shop

RSVP by October 7 to celebrate@maragell.com

NJ Employers Now Barred from Seeking Social Media Passwords

Effective December 1, 2013, New Jersey employers will be prohibited from requiring both job candidates and current employees to disclose the user names and passwords to their personal social media accounts.  Last Thursday, Governor Christie signed into law a revised version of Assembly Bill 2878 making it a violation of NJ law to do so.  An earlier version of the same bill had previously provided for a private right of action allowing individuals to sue for violations of the law.  As of now, only civil penalties (up to $2,500) can be imposed and are to be collected by the Commissioner of the New Jersey Department of Labor and Workforce Development.

Under the new law, employers can still monitor social media accounts that are open to the public, are provided by the company for use by the employee, or in the case of suspected wrongdoing, to conduct an investigation of a current employee’s social media account if the account is used for business purposes of the employer or if used to engage in business-related communications, but only if the employer independently received information about the suspected wrongful conduct (i.e. in a lawful manner from a third party).

Key Practice Points:

  1. Employers should review their application and background check forms and conform them to the new law.
  2. Social media policies should be updated to warn employees that the use of personal social media accounts for business purposes may entitle the company to examine them for compliance with company policies regarding marketing, advertising, data transfer, regulatory affairs, and other business rules.
  3. Managers should be made aware of how they may conduct examinations of social media sites to enforce the issues raised in Point 2 above.  The NJ federal court case of Ehling v Monmouth Ocean Hospital Service Corp  (decided August 20, 2103) and the NJ state court case of Pietrylo v. Hillstone Restaurant Group (decided July 24, 2008) both provide real world examples of how these issues may play out when an employer begins to peek under the gurney/table.
  4. Litigants must be wary of using usernames/passwords found on company computers to access these social media sites.  Properly crafted computer use policies may enable an employer to use information found on company equipment even if it is from a password protected account.  Moreover, employees who configure their social media sites to automatically boot at start-up should be made aware that the employer may have instant access to those sites in the event the employer takes possession of or simply uses the computer for legitimate business purposes.

For additional information, please give us a call or email us at info@maragell.com.

Corporate Investigations Firm Maragell, LLC Finds Its Work is an Economic Indicator

FOR IMMEDIATE RELEASE

Contact: Andrew Becker

Phone: 856.449.5220

Email: abeckernj@gmail.com

Increased Hiring Has Led to Increased Background Check Work for Local Firm

Haddonfield, NJ – July 15, 2012 – There is fresh evidence that the nation’s slow, steady climb out of the Great Recession is picking up steam, and it comes from a source for whom evidence is paramount: corporate investigations firm Maragell, LLC. “We’ve seen our venture capital clients light up the board with new investments, deep-dive due diligence investigations for manager-level jobs have increased in the corporate marketplace, and even our hedge fund clients, which have been rather dormant for the past three years, have begun investments with new managers,” said the Haddonfield, New Jersey firm’s managing principal, Jeffrey S. Brenner, Esq., NJLPI.

Maragell recently marked six months in business after forming late in 2012, spinning off from the US operations of Intelysis. Its clients include lawyers, accountants, hedge funds, venture capitalists, insurance claim specialists, and both small businesses and Fortune 100 companies. The core legal and IT professional staff previously worked together under Mr. Brenner’s leadership at Intelysis. Maragell is based in New Jersey, but covers the world through strategic relationships with skilled investigators on several continents.

Mr. Brenner, who worked as a trial and business transactions lawyer before transitioning into his investigative career, sees the investigative industry as a bell-weather of the economy. “There are many reliable indicators about new hiring, but one that is sometimes overlooked is background check activity. My colleagues and I have observed over our decade in the industry that we could predict the health of the economy by the number of new investigations firms like Maragell were conducting on behalf VCs, hedge funds, and family offices,” he said.

Deteriorating economic conditions were apparent in the investigative industry’s ebbs and flows several years ago, as well. “As soon as Bernie Madoff confessed in 2008, we saw an immediate drop off in business from our Wall Street clients, followed closely by our C-suite clients,” said Brenner. “Today, we are hearing from clients from coast to coast asking for investigative background checks on start-up tech companies, real estate investments, international money managers, and a variety of C-level executives who will be heading expansions of several of our clients’ business divisions.”

Maragell also has seen an increase in the use of its computer/digital forensics services by its legal clients. According to Brenner, who is a frequent lecturer on the topic, the legal community in Philadelphia, New York and New Jersey has been rapidly increasing its use of forensic investigations in employment law and business divorce matters. “The power of knowing what an employee or business partner has done with his or her computer for an extended period is an enormous advantage in court,” said Brenner.

Unloading Electronic Social Media “Baggage” May be Hazardous to the Health of Your Case

 

Social Media ediscovery

Computer forensics and social media

 

You already know that the privacy settings on many social media websites are not as private as you want, and that “delete” doesn’t really mean delete.  But did you also know that if you try to unload some of that electronic “baggage” to improve your online presence, you might fall into even hotter water?  That’s what one New Jersey plaintiff learned the hard way in the case of Gatto v. United Airlines and Allied Aviation Services., et al., No. 10-CV-1090 (D.N.J. March 25, 2013).

 

 

Gatto, a former baggage handler at John F. Kennedy Airport, sued United Airlines and Allied Aviation Services for damages when a set of fueler stairs crashed into him while he was unloading suitcases from an airplane.  He claimed his injuries left him permanently disabled, and that his disability limited his physical and social activities.

In the course of discovery, the defendants sought authorization from Gatto to access his social media and online business accounts, including sites such as Facebook, PayPal and eBay.  Gatto complied with the request for many of his accounts, but not Facebook.

On December 1, 2011, during a settlement conference, the parties worked out an agreement that would give (and did give) the defendants access to Gatto’s Facebook account.  However, shortly thereafter, after receiving an alert from Facebook that someone had accessed his account from an IP address in NJ unknown to him, Gatto deactivated the account (he claimed he thought it was hacked).  When the parties tried to re-gain access, it was determined that all of his information was gone.

The defendants then subpoenaed Facebook (and provided a copy of Gatto’s authorization) seeking all the account information directly.  Facebook responded to the subpoena with its usual defenses regarding the Stored Communications Act (which it claims prevents it from disclosing all information), but more importantly, it advised that all the account data had been automatically deleted once the 14 day reactivation period expired. (There was some discussion in the opinion as to whether Gatto merely deactivated his account or went further and intentionally wiped it out, but the issue became moot in the end).

Based on several screen shots of Gatto’s Facebook page that were printed by one of the attorneys for United which showed Gatto engaging in activities that were inconsistent with his testimony, the defendants moved for sanctions against Gatto for destroying evidence they believed would have further shown that Gatto was not as limited as he claimed.  The court granted their request for an adverse inference at trial ruling that it was

[c]lear that Plaintiff’s Facebook account was relevant to the litigation. Plaintiff alleges to have sustained serious injuries in this personal injury action, and further alleges that said injuries have limited his ability to work and engage in social and physical activities. The Facebook information sought by defendants focused upon posts, comments, status updates, and other information posted or made by the Plaintiff subsequent to the date of the alleged accident, as such information would be relevant to the issue of damages.

The Court finds that it was reasonably foreseeable that Plaintiff’s Facebook account would be sought in discovery. Defendants requested Plaintiff’s Facebook account information as early as July 21, 2011, nearly five months before Plaintiff deactivated his Facebook account. Furthermore, Plaintiff’s Facebook account was discussed during the December 1, 2011, Settlement Conference, where Plaintiff was present and the Court order related to the discovery of information associated with Plaintiff’s Facebook account. Accordingly, it is beyond dispute that Plaintiff had a duty to preserve his Facebook account at the time it was deactivated and deleted.

A copy of the Gatto decision can be downloaded here:

Gatto v United Airlines et al.

The takeaways from this ruling are many-fold:

For the socialite who enjoys posting pictures of anything that pops in front of his/her camera or the earth-moving thought that creeps into his/her mind, or better yet, the cell phone user who activates software that automatically updates his or her whereabouts (“Sally just checked into Starbucks at 3rd and Vine…”) these life moments could become Exhibit A at trial.  Alternatively, deleting them could result in the case being dismissed.

For the plaintiff’s attorney, social media sites can help assess the veracity of a client’s story.  Better to know up front that your client is stretching the truth or corroborating his case.

For the defense attorney, early preservation letters with detailed instructions regarding what to preserve and what not to destroy or terminate can help with early case assessment or serve as a basis for a successful spoliation motion months or years later.

For all litigants, knowing how to preserve these online life-storehouses is paramount.  Printing screenshots is sophomoric, but may be enough to prove a point.  Capturing entire accounts, in real time, using forensically sound techniques, may be a game changer. And for those awkward posts and pictures, once the accounts have been preserved forensically, the good news is they can be deleted from the active account without fear of retribution.

PIs Reveal Just How Easy it Can Be to Steal Your Identity

For those of you who think your personal information is safe, our colleagues in New York teamed up with NBC News to show just how easy it is to exploit our identities.  Watch the video here:

http://video.msnbc.msn.com/dateline/51320223

Every day we use many of the same tools and techniques featured in the news report to perform background checks, due diligence investigations, skip traces and other services for businesses, law firms and insurers.    It is because so many people are careless with their information, or worse, think others are so interested in their lives they purposefully post it, that we can empower employers and litigants with this information.

So you don’t become a victim, here are some Internet practice points:  Lock down your Facebook page, create anonymous email addresses to post comments on articles/news stories, use fictitious screen names for use on Pinterest, Spotify, Instagram, and other social media sites so the information cannot be linked back to you—your followers don’t care what your real name is (and you can always tell your friends how to find you), if you use a dating website, use sites that are not open to the public (i.e. non-members should not be able to view your page), sign up for credit monitoring (TransUnion, Experian, Equifax all offer the service at competitive prices), and always keep your birth date off the web.

Brenner to Present at PBI Business Divorce Seminars

Jeffrey Brenner, managing principal of Maragell, LLC, has been requested by the Pennsylvania Bar Institute to serve as a panelist at its full-day Business Divorce seminar that will take place on several dates across the Commonwealth:  March 4th (Pittsburgh), March 7th (Mechanicsburg) and March 11th (Philadelphia).

He will join a panel of experts in fields of corporate law, litigation, and business valuation.  Brenner will cover issues relating to the role IT plays in a business separation, and the preservation and analysis of electronically stored information for use in litigation, including data stored on smartphones, tablets, and cloud-based applications.

Brenner specializes in computer forensics and corporate investigations and has been retained by numerous businesses, insurance companies, governmental agencies, and school districts to assist with their electronic investigation needs.

The seminar has been approved for 6.0 PA CLE substantive credits including ethics.

 

Brenner to Present at Camden Bar Cyber Bullying Seminar

Jeffrey Brenner, managing principal of Maragell, LLC, has been requested by the Camden County Bar Association to serve as a panelist at its Cyber Bullying seminar that will take place on February 21, 2013 from 4 – 6:15 p.m. at Tavistock Country Club in Haddonfield.

He will join a panel of experts in school law and civil rights, which include: Kevin M. Costello, Esq., William S. Donio, Esq., Gerald “Buzz” Mingin, PhD, and moderator Craig David Becker, Esq.

Brenner will cover issues relating to detecting and proving cyber bullying as it relates to the use of computers, smartphones, and social media outlets.

Brenner specializes in computer forensics and corporate investigations and has been retained by numerous school districts to assist with their electronic investigation needs, both in the case of staff members and students.

The seminar has been approved for 2.0 PA CLE substantive credits and 2.4 MCLE credits.

Welcome Our Newly Appointed New Jersey Certified Paralegal

Deb Myerson Accepting NJCP Certificate

Deb Myerson and Becky Reedy

Deb Myerson, paralegal at Maragell and Vice President of the South Jersey Paralegal Association, was appointed as a New Jersey Certified Paralegal at the December 4, 2012 South Jersey Paralegal Association dinner.  In order to become a New Jersey Certified Paralegal, Deb was required to earn a degree in Paralegal Studies as well as establishing to the Association a proficiency in completing substantive paralegal work.  The designation requires all Certified Paralegals to stay abreast of issues affecting the paralegal community and to complete twelve continuing education credits every two years. Deb earned her Associates degree in Paralegal Studies from Camden County College in 2005 and went on to earn a Bachelor’s Degree of Science in Paralegal Studies from Peirce College in June 2012.  She has devoted her entire professional career to the field of investigative research and serves as one of Maragell’s department leaders.