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Boy Scouts: New Netflix Film Reveals Horrific Abuse Scandal

on September 5, 2023

Introduction:

On September 6th, 2023, Netflix releases its latest documentary, Scouts Honor. It will depict how Boy Scouts of America (BSA) attempted to conceal a child sexual abuse scandal of immense proportion in American history. BSA has accumulated more than 1 million members since its inception in 1910 (Boy Scouts of America), similarly modeled to its British counterpart named the Boy Scout Association. Its mission to “prepare young people to make ethical and moral choices over their lifetime by instilling in them the values of the Scout Oath and Law,” is the foundation for its seemingly esteemed reputation. Congress chartered BSA in 1916 under Title 36, recognizing it as a “patriotic and national organization” (TIME Magazine). Additionally, the Title permits Congress to investigate the organization, which it never has (Washington Post). It is astonishingly ironic that certain individuals responsible for upholding righteous principles also perpetuated antithetical actions for nearly a century. Further into the blog, insight from Domestic Violence Investigation Expert and current Pack Master, Rachael Frost, Master Inv. (ret.) will be highlighted. Until then, here is a historical timeline of the Boy Scouts of America scandal.

Timeline:

Boy Scouts of America Child Sexual Abuse Misconduct (Abuse in Scouting)

  • 1920: BSA began collecting reports of volunteers accused of child abuse called “Red Files” just ten years after it was founded.
  • 1971: Unbeknownst to most Scouting employees, executives disclosed eradicating thousands of outdated “Perversion Files,” accounts of known child molesters within BSA. Files were eradicated if the abuser was over eighty years old or deceased.
  • 2007: The Boy Scouts of America faced its first lawsuit. Six former Boy Scouts in Oregon sued the organization for child sexual abuse by a previous scoutmaster in the 1980s. The jury consumed thousands of internal reports and saw how severely BSA mishandled sexual misconduct claims. As a result, the organization paid the plaintiffs $19 million in damages.
  • 2012: The Oregon case documents were made public. From the records, investigators discovered that officials implored sexual abusers to relinquish their positions rather than report them to the police, covering for the abusers to the detriment of the Scouts.
  • 2020: The Boy Scouts of America filed for Chapter 11 bankruptcy after many sex abuse claims and listed assets totaling almost $10 billion.
  • March 28th, 2023: BSA settled a class action lawsuit. Reuters states, “The Coalition of Abused Scouts for Justice, a group of 18,000 sexual abuse survivors, said the agreement would bring ‘some justice to tens of thousands of survivors, men and woman, many of whom would have been waiting for decades for this day to arrive.” The youth organization reached a $2.4 billion settlement because of this class action and the decades of sexual abuse claims filed (CNN). Depending on the allowed amount of the claims, individual survivors are expected to receive between $3,500 to $2.7 million in damages per claim. BSA also implemented its Plan of Reorganization consisting of programs dedicated to preventing child abuse, from background checks to prohibiting adult and child one-on-one sessions.
Photo represents the Red and Perversion Files collected by Boy Scouts of America executives.

Expert Q & A Section:

Domestic Violence Investigation Expert, Rachael Frost, Master Inv. (ret.), explains common characteristics among abusers, how to identify grooming behaviors, and potential legal reforms for the future:

*Disclaimer* – This article does not discuss pedophilia. This is a psychiatric diagnosis defined as “over a period of at least 6 months, an equal or greater sexual arousal from prepubescent or early pubescent children than from physically mature persons, and manifested by fantasies, urges, or behaviors,” (Psychology Today).

Q #1: In your experience, are there common characteristics or behaviors of known or suspected child abusers? If so, what are they?

A #1: Let’s focus primarily on those who commit sexual abuse against children. Regardless of motivation – whether an intense sexual arousal towards children, or specifically young boys, or because of a sexual desire to manipulate, control, and have sex with children due to vulnerability or opportunity, yes, child molesters have very similar tactics.

The following statement is not to tarnish any fields or people within them with heart and dedication for our youth. There are certain jobs that give perpetrators more access to a child and their family’s trust. They provide chances for them to simultaneously praise and condemn a child’s actions and personality traits to get them to rely more upon the perpetrator’s positive interaction. It allows them to isolate a child without raising extreme suspicion. Overall, they generally choose jobs where they are around children. You do not become an accountant.

Common tactics include:

  • Choosing a Vulnerable Victim: Kids with poorer relationships with family/foster child/looking for sense of belonging/lonely/taking advantage of a friendly connection.
    • It is important to note that being a vulnerable victim is NOT the victim’s fault. None of this is their fault. It is the perpetrator’s fault and manipulation.
  • Providing Special Consideration: “Love Bombing”/special gifts or treatment.
  • Providing Access to Risky Behaviors: Alcohol/drugs/porn/parties/staying up all night/going to places parents would not approve/etc.
  • Personal Time: Extra time together/going to a gym/spending time at the perpetrator’s house.
  • Sharing Secrets
  • Sharing Touch: Gradually getting them used to touch to “accidentally” grazing more intimate places.
  • Projecting Guilt: “If you do not do this for me you do not think I am special, you do not care.”
  • Sexual Contact: Framing intercourse or sexual contact as a learning process and normal.
  • Denials, Promises, & Blame: The perpetrator relies on their good standing in the community. The abuser also blames the victim’s “bad behavior” if any possible disclosure is heard.
  • Power and Control: Promising Withholding [below]/promising to tarnish the person’s reputation if they say anything/using homosexuality as a manipulation tactic.
  • Withholding: Time/gifts/secrets/promises – when the victim pulls away or does not meet control requirements of the perpetrator.
  • Threats

Q #2: Do you think State and Federal legal reform is necessary to mitigate child sexual abuse?

A #2: Yes, reform should be considered in four areas –

  • Regulations for Access and How Adults Interact with Children: The Scouts have required safety courses, fingerprinting, and a safety video advising no single adult should ever be alone with a Scout. However, it must be greater to include a full background check by a trained background investigator…, and specific, defined interaction requirements that are subject to civil or criminal investigation if violated.
    • No adult/set of adult in a room away from other children and adults.
    • Rotating parent involvement.
    • Mandatory awareness training for all parents becoming involved in an organization for what behaviors are unacceptable.
    • Child education regarding what association representatives should and should not do.
  • Education for and Increased Types of Professions Who Are Mandated Reporters of Child Abuse or Neglect: Even those who are mandated reporters too often do not report, often because they either do not know they should report or are dissuaded by executive staff.
  • Increased Annual Education for Children and Safe Spaces for Children to Report Abuse and Neglect: Children should know who they can talk to. They can come to the front office, or talk to a teacher, officer, parent, or mentor they trust. Examples of what predators say to keep children from saying anything, and discussing grooming tactics openly, are all important.
  • Mandated Policies and Procedures to be followed in Child Abuse and Neglect Reports and Investigations and Consequences for Legal Failures: Addressing legal failures that prevent mandated reporters and investigators from letting incidents fall through the cracks is necessary. Including protections for mandated reporters begins with confidentiality and job protection. This should also include specific, supportive direction and significant consequences for the knowing failure to meet these legal requirements.

Additional solutions:

Emphasizing parent education about what grooming looks like can also mitigate child sexual abuse in organizations like the Boy Scouts of America. Parents are advised not to leave their children or a group of children alone with a single adult, no sleepovers, or traveling alone with adults. Finally, they should also pay attention to the amount of time an adult spends with their child and gifts being given to their specific child and not others.

Q #3: Will the Boy Scouts of America’s reorganization reforms successfully reduce abuse, and are there other processes it should institute to prevent abuse?

A #3: This is a start, and additional safety features may be put in place. However, like all programs, it cannot simply be an add-on program. It must become a mantra, a process, a part of what the Scouts are. It must be prevalent in how leaders conduct themselves, messaging from the association, from schools, parents, and participants.

Q #4: In my lifetime, I’ve seen massive organizational abuse and coverups in both the Catholic Church and now the Boy Scouts. Are there other organizations where similarly massive scandals are currently under investigation?

A #4: There are a few reasons why abuse in Scouting was prevalent for so long. While these could be argued as good things, it combined religion, youth mentorship, and regulated behaviors (uniforms, respect, pride, honor) with a leader responsible for teaching children lifelong and beneficial skills embodying the roles of God and righteousness. Parents and other community members saw these gregarious and friendly leaders as pinnacles of the community. They were held to a high standard, supposedly met the standard, and were above reproach. Still, underneath all that friendliness is a complicated, harmful monster. The difficult part is spotting the wolf among the overwhelming group of great pack and troop leaders.

I became a Pack Master because I believe in the mission of providing children a safe space to learn and create community. I wanted to establish an environment where I knew that kids were celebrated for who they were without judgment and mitigate misplaced patriarchy. Fostering the recognition of every culture, race, religion/non-religion, sexual orientation, and gender identification is important. Respect, community, and positive behaviors can develop without fear of Eric Cartman’s (South Park) “You will respect my authori-tay” mentality.

Specifically regarding organizational coverups, they occur in any system or association. Organizations need executive staff members who recognize the true issues of an ongoing problem are 1) wrong; and 2) have to be addressed effectively and transparently. The messages and processes for this leadership must be clear throughout the entire organization and community. Any entity has to inquire about its “Business Culture” during its strategic planning and must meet in all they do. It is crucial for organizations, especially those that serve children, to lead ethically. Lastly, ethics do not rest on a checklist, as true solutions are holistic and complete with redundancies and iteration.

Expert Parting Words:

Emphatically, no one should be above the law and of decency. Evidence-based investigation is vital. We cannot allow for anything otherwise or else we are just giving into cancel culture. There is often extreme corroborative evidence in these cases, especially when law enforcement can quickly get to them.

Wooden blocks spelling moral and ethical, the two qualities needed for leaders in the Boy Scouts of America and all other organizations.

Conclusion:

According to Rolling Stone Magazine and Brian Knappenberger (director of the upcoming Netflix documentary), “There are over 82,000 and counting survivors of sexual abuse in Scouting.” From the Scouts Honor trailer alone, the courage and fearlessness of the interviewees involved are highly commendable. Tomorrow’s release will provide a more detailed depiction of the severity of BSA’s abominable actions and the suffering it induced. From the current circulation of news, the Boy Scouts of America has undergone a three-year financial reconfiguration process. It also enacted a Plan of Reorganization, where a series of protection policies were implemented to ensure children’s safety. Examples include required youth protection training for employees and volunteers, criminal background checks for staff and leaders, and the ban on one-on-one interactions between adults and scouts. Hopefully, the youth organization and historic institution will clean up its act and keep its promises to survivors by breaking its cycle of criminal behavior.

A special thank you to our Domestic Violence Investigation expert and Pack Master, Rachael Frost, Master Inv. (ret.), for taking the time to provide her contributions.

If you know anyone in need of support, visit the RAINN website or call the National Center for Missing & Exploited Children’s telephone hotline 800.THE.LOST (843-5678).

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Criminal JusticeCriminal Law

A Review of the Alex Murdaugh Trial

on March 15, 2023

On March 2nd, 2023, Alex Murdaugh was convicted of killing his wife, Maggie Murdaugh, and 22-year-old son, Paul Murdaugh, at their Moselle home in South Carolina’s Lowcountry. Murdaugh was once a name with an untouchable reputation due to their affluence and connections to the South Carolina justice system for nearly a century. Now, their prestigious image and legal reign have withered. While the trial may have been the straw that broke the camel’s back for the Murdaugh’s, sickeningly, this tragedy was not the only crime allegedly related to the family. Below is a convoluted timeline of the events leading up to the trial, and a summary of the trial itself.

Welcome to South Carolina sign.

Timeline of Events (FOX News, Inside Edition, CNN)

January 2006: Randolph Murdaugh III relinquished his role as a prosecutor responsible for overseeing five counties in South Carolina’s 14th circuit district: Allendale, Colleton, Hampton, Beaufort, and Jasper. His son, Alex Murdaugh, volunteered at the solicitor’s office while simultaneously continuing his partnership with Peters, Murdaugh, Parker, Eltzroth & Detrick, a prominent personal injury law firm.

July 8th, 2015: 19-year-old Stephen Smith, a former classmate of Alex’s oldest son, Buster Murdaugh, was found dead in the middle of a road. South Carolina Highway Patrol investigated the scene and discovered Stephen’s car was out of gas, which was a mistake that occurred frequently, and the tank was open. It ultimately declared the incident to be a hit-and-run and had an autopsy to confirm the determination. However, the car was approximately three miles from Stephen’s body, he suffered severe head trauma, and he had injuries on his left arm. To add, Stephen’s family thought it was off that he did not call them for help, which was normal practice if he was stranded. The listed observations made Chief Billy Jarrell think the incident may have been a homicide.

In December, the South Carolina Law Enforcement Division (SLED) received an anonymous tip revealing Paul and Buster as potential persons of interest. While there were rumors of Buster and Stephen having a secret affair, neither of the brothers were named suspects in the incident and it remains unsolved.

February 26th, 2018: Gloria Satterfield, the Murdaugh family’s housekeeper, allegedly died from tripping over a set of stairs at the Moselle property. Her family issued a wrongful death claim ten months later but never received the money.

February 24th, 2019: Paul, who was underage, drunkenly crashed his father’s boat into a bridge in Beaufort, resulting in the death of 19-year-old Mallory Beach, whose body was found a week later. The incident also injured four other friends. It was reported that he had a blood alcohol level three times the legal limit. Paul was later charged with three felony counts of boating under the influence causing injury or death and was released on a $50,000 personal recognizance bond. A trial did not occur due to his murder.

April 2021: Maggie Murdaugh allegedly met with a divorce attorney for a consultation.

June 7th, 2021: The Moselle Murders occurred.

  • Between 9:00-9:30 P.M., Paul and Maggie Murdaugh were fatally shot outside of their family hunting property. Two different guns were fired: a shotgun was used on Paul, and Maggie was shot with an assault rifle (Daily Mail).
  • At 10:07 P.M., Alex Murdaugh hysterically dials 911 reporting he discovered Paul and Maggie’s bodies near the dog kennels. In his first statement to a deputy who arrived at the scene, Alex stated Paul was receiving online threats for his involvement in the boating accident.
  • At 11:47 P.M., SLED officers became the lead investigators of the case.

June 23rd, 2021: Considering new details regarding the Murdaugh murders, SLED reopened the cold case of Stephen Smith’s murder in 2015.

September 2021: A series of events took place.

  • September 4th: Alex reported to 911 that he was shot in the head by a gunman passing by in a truck while he was changing a tire on the roadside. Evidently, the incident happened near the Moselle crime scene. Later that day he announces his recusal from the family practice and attends rehab for a twenty-year-long opioid addiction.
  • September 6th: Murdaugh’s law firm explained his embezzlement of the firm’s finances was the basis of Alex’s departure. The partners came to this conclusion after working with a forensic accounting firm.
  • September 15th: Alex admitted to staging his own shooting as an effort to give his son Buster a $10 million life insurance policy since the money would not be provided if his death was caused by suicide. He hired a friend named Curtis Smith, aka “Cousin Eddie.”
  • September 16th: To direct law enforcement to focus on Paul and Maggie’s murders, Alex admitted to the orchestration of his roadside shooting and turned himself in after an arrest warrant for alleged insurance fraud was released.
  • September 20th: Connor Cook, a former friend of Paul, filed a lawsuit against Alex claiming he was scheming to blame Connor for the 2019 boat crash.

October 2021: Another series of events happened.

  • October 6th: Gloria Satterfield’s sons filed a lawsuit against Alex stating he misused the death settlement money. They never received any of the $4.3 million that was owed.
  • October 9th: Alex was arrested from rehab for falsely acquiring property which stemmed from Gloria Satterfield’s wrongful death settlement.
  • October 13th: Alex has been announced as a person of interest for Paul and Maggie’s murder.

From this time up until December 2022, Murdaugh has been charged with the death of his wife and son. He was also charged with nearly 100 fraud, criminal conspiracy, and drug charges for potentially running a drug ring in Colleton Country with Curtis Smith (2013-2021). SLED also announced its exhumation of Gloria Satterfield’s body, which is an ongoing investigation. Stephen Smith’s case is also ongoing, but additional information has not been made public.

Courtroom Testimony.

Trial: The State of South Carolina v. Richard Alexander Murdaugh (FOX News, Inside Edition)

The six-week trial began on January 23rd, 2023, and ended on March 2nd, 2023.

Week 1 Insight: Prosecutor Creighton Waters brought Sgt. Daniel Greene, who was at the crime scene on June 7th, 2021, to the stand. Despite Murdaugh telling law enforcement he checked for pulses on the bodies, Greene told the court Murdaugh lacked blood on his clothes and hands, and tears in his eyes.

Jurors learn the timeline of what occurred in June. Videotaped interviews reveal Alex drove around the Moselle property with Paul and ate dinner with Paul and Maggie afterward. This dinner was the final time Alex saw his wife and son. Maggie went to the dog kennels, which was a quarter mile from the house, and Paul left without stating his location. Alex took a twenty-minute nap with the TV on. He wakes up and sends Maggie texts and phone calls, only to not receive a response. A few minutes past 9 P.M., he visited his mom who suffers from Alzheimer’s at her home 20 minutes away from Moselle. Alex came home, saw the house was empty, and drove to the dog kennels to look for Maggie. He discovered the tragic scene and dialed 911 at 10:07 P.M.

Week 2 Insight: A debate between the prosecution and defense ensued over Alex’s pronoun use in a videotaped interview with SLED. Here is the following statement of contention: “It’s just so bad. I did him so bad.” The prosecution believes Alex said “I,” meaning he had inadvertently confessed, whereas the defense believed he said, “they.”

The prosecution presents the court with a pivotal piece of evidence: a Snapchat video. Paul recorded a video via Snapchat at 8:44 p.m. placing him at the dog kennels. Prosecutors said he was murdered three minutes after. There were two other voices other than Paul’s recorded in the video. Paul’s friends, Will Loving and Rogan Gibson, confirmed the male voice belonged to Alex. This confirms Alex was at the crime scene minutes before the murders despite him saying he arrived around 10 P.M. when they were murdered.

A second Snapchat video was filmed an hour before the previously mentioned Snapchat video. It portrayed Alex in a completely different outfit than what he was wearing when law enforcement arrived at the scene.

Week 3 Insight: A bomb threat was called in and caused the courtroom to evacuate. After it was proven a hoax and everyone returned inside, jurors listened to extensive accounts about Alex’s alleged financial misdeeds. They also learned Shelley Smith, Alex’s mother’s caretaker, was pressured to say he visited his mother for at least forty-five minutes. He was only there for twenty minutes. The Murdaugh’s current housekeeper also took the stand. She said Alex told her to say he wore a different shirt the day of the murders.

Week 4 Insight: Before the prosecution rested their case, Marian Proctor, Maggie’s older sister, announced to the jury Alex told Maggie and Paul to come to the Moselle property despite not wanting to go. She also alluded to Maggie’s happiness with Alex despite the imperfect marriage.

Dr. Ellen Reimer, the pathologist who performed Paul and Maggie’s autopsies, testified against the defense’s theory of how the deaths occurred (Law and Crime Network). She suggested their proposed theory would have left more damage to the bodies than what appeared.

The final witness brought to the stand was special agent Peter Rudolfski, who revealed additional information regarding the timeline of the June 7th murders. At 10:05:57 P.M., Alex arrived at the dog kennels. At 10:06:14 P.M., less than 20 seconds later, he phoned 911. Alex told the dispatcher he checked for Maggie and Paul’s pulses, whose bodies were 30 feet apart from each other. Paul’s knowledge of his father’s drug addiction, and his confrontation with Alex about the issue, were brought to light as well.

Week 5 Insight: Buster Murdaugh was a witness for the defense and testified he drove over to the Moselle property after his phone call with Alex regarding the brutal death of his mother and brother. During his testimony, the defense plays the controversial video that sparked debate three weeks ago. Buster said Alex used the “they” pronoun as opposed to “I.”

This is also the week Alex took the stand in his own trial. He admitted to lying to friends, family, and investigators about being at the dog kennels with his wife and son minutes before the time prosecutors said they were murdered. Despite having a bag of opioids on him that night, he told the court his drug addiction caused paranoia and stated his distrust of the investigators.

Week 6 Insight: After listening to the closing arguments, the jury deliberated for less than three hours and ultimately delivered a guilty verdict. Alex Murdaugh was sentenced to two consecutive life sentences without parole on March 3rd, 2023.

CNN reports the confirmation from Alex’s defense team that they will be appealing the sentencing for Paul and Maggie’s murders. The trial may have ended, but it certainly will not be the last time Murdaugh enters a courtroom. CNN states prosecutor Creighton Waters will pursue Murdaugh’s plethora of financial, conspiracy, and forgery charges.

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Law: Gender Gap in Expert Witness Work

on February 15, 2023

On June 10th, 1963, the Equal Pay Act was enacted to require men and women to receive the same pay for the same work. Over 50 years later, gender equality still dominates workplace conversation. Since the 1960s, this “pay gap” has closed significantly, so it is best to recognize progress. For some industries, however, the pay isn’t even the issue. It’s the gender, or lack thereof. In a multi-million-dollar industry with many participants, it is difficult to ignore the underrepresentation of women in the expert witness industry. 

The Financial Times stated, “Last year in the Who’s Who Legal expert witness directory, just 16 percent of the experts listed were female.” The same article also mentioned a 2020 study by PwC and Queen Mary University. Out of 180 arbitral proceedings awards managed by the International Chamber of Commerce in Paris and New York between 2014-2018, only 11% were given to female expert witnesses. This blog aims to explain why the gap exists, provides tips for those in the legal industry to encourage women to participate in expert witness work, and includes accounts from Liability Insurance Expert and Experts.com Member, Jane M. Downey, ARM, M.Ed.

Three central reasons contribute to the scarcity of female expert witnesses. The first reason is simply that it is a male-dominated industry. For instance, according to Bloomberg ABA/BNA Lawyer’s Manual on Professional Conduct, “an astonishing 80 percent of expert witnesses chosen by attorneys are male.” Considering the field has been male-centric for an extended period, attorneys are more inclined to work and cooperate with male expert witnesses. The second reason stems from the first, which is a lack of availability. The same article states “there are far more male experts to choose from in almost all specialties – with the prominent exception of nursing.”

The third reason involves gender stereotypes and roles which have always existed in our society. The Jury Expert released an article about the ways gender bias affects both male and female expert witnesses. An excerpt from the article states, “Some studies have shown that men may be more influential and persuasive than women, particularly when they occupy traditionally masculine roles.” Prejudice is more likely to surface when women pursue roles that do not correspond to their gender’s expectations (structural engineer, police policy, construction defect), which may occur on a case-by-case basis. That is not to say people should only pursue occupations limited to their gender norms. The prejudice correlates to how an expert may be perceived by juries and judges. “The degree to which the expert’s gender and the type of case agree (what researchers call ‘gender congruence’) may be important in determining whether a male or female expert will be more credible and persuasive,” The Jury Expert.

The above reasons generally explain the lack of female expert witness testimony. Individually, women have different experiences in their expert witness work. The following is an insightful Q&A with Jane M. Downey, ARM, M.Ed, regarding her experience as a female Liability Insurance expert witness:

Q: How did you discover expert witness work?

A: My first case was a referral from the President of the Insurance Society of Philadelphia. I did not like that case because it had a 48-hour Federal turnaround timeline and was very stressful; therefore, I did not pursue the work until a few years later. It was then I was approached on a massive case, and I really enjoyed the work and the team of attorneys that I supported.

Q: What was the deciding factor for you to participate in providing expert witness testimony?

A: I have always loved to write and teach.

Q: Have you faced any difficulty as a female expert witness?

A: I think being female has given me an advantage. I stand out in all the listings.

Q: Why do you think there is a gender gap in the insurance industry? Do you think it might be attributed to a lack of knowledge of expert witness work as an option for financial income or other factors like gender roles?

A: I think there is a gender gap in the insurance industry, but it is much narrower now than in other industries. To be an expert witness, you have to be willing to be confrontational. I know a lot of women who avoid conflict.

Q: How should the legal industry encourage women to consider participating in expert witness work?

A: Training, training, training. I did not realize until recently that my master’s degree in Group Dynamics prepared me for this work and my work as an insurance arbitrator.

There are initiatives in place to inspire women to consider expert witness work as a part-time or full-time job. The previous Financial Times article highlighted a campaign called The Equal Representation for Expert Witnesses. Initiated in 2015, its goal is to help women market themselves to the legal industry. According to the article, “the pledge has 4,129 individuals and 983 organizations in 143 countries as signatories.” With movements such as this, hopefully, we will see more women entering the arena of participants for expert testimony.

Ultimately, attorneys, male or female, must do their due diligence in selecting the most highly qualified expert for their case, regardless of gender. But if women are absent from the pool of experts there can be no expectation for change. With proper training and industry knowledge, women can find expert witness work to be intellectually challenging, lucrative, and satisfying. A special thank you to Liability Insurance Expert and Expert.com Member Jane M. Downey, ARM, M.Ed for taking the time to contribute to our latest blog post.

GEICO store
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Insurance: All CA GEICO Stores Shut Down

on September 21, 2022

During the first week of August, GEICO officially announced its shutdown of all California locations (Sacramento Bee). When the Sacramento Bee article was written, GEICO’s website listed some of the operating San Diego and Bay Area offices, but a week later, California was removed from the list of states to search for a local office. Not only are 2.18 million Californian GEICO customers affected, but hundreds of employees are left jobless. Why would the largest auto insurance company implement a mass in-person exodus from the most populated state in the country? This question and more are answered in this month’s topical post, with insight from Liability Insurance Expert and Experts.com Member, Ms. Jane Marie Downey, M.Ed, ARM.

GEICO is a private insurance company headquartered in Chevy Chase, Maryland. Since 1936, it has passed 17 million policies in force (active insurance policies) and has insured over 28 million vehicles (last checked in 2019) [GEICO]. GEICO has offered in-person services to consumers in every state until recently with the shutdown of locations in California. Former California Insurance Commissioner Dave Jones stated, “The benefits of having a physical location in California with actual offices and physical agents is that it’s easier for the Department of Insurance to make sure those individuals have a license and meet California’s very stringent standards – consumer protection standards for the sales of insurance,” (ABC10). From a customer perspective, visiting GEICO in person helps alleviate any miscommunication with agents and ensures they receive the correct coverage or assistance they need. Unfortunately, this is no longer an option for Golden State residents.

Corporations like Tesla and Oracle removing themselves from California has become a norm in recent years. In their new locations, they can now more cost-effectively serve their consumers. The following insight from Ms. Jane Marie Downey, M.Ed, ARM, and various news articles, explains GEICO’s California departure. According to Ms. Downey, “The cost of doing business in CA is high.” She also mentioned that the steep increase in personal injury and automobile liability insurance, “nuclear verdicts,” have made it difficult for insurance companies to price accurately. Verdicts can reach as high as $30 million or more. To add, “GEICO is owned by Warren Buffett’s Berkshire Hathaway, which reported a 53-percent drop in earnings for the first quarter of 2022. It reported earning $47 million in insurance underwriting in the first quarter of this year, compared to $764 million in the same quarter in 2021,” (The Epoch Times).

California’s state regulations seem to be the root of GEICO and other corporations’ removal from California or migration to another state. Steve Young, a lawyer for Independent Insurance Agents & Brokers of California, said, “There’s a very complicated insurance rating law that is in effect here that makes it very difficult for insurers to have confidence that they can get the rate that they need from an actuarial perspective to ride these risks going forward,” (ABC10). The article reported the agents were under a gag order, but one of them said GEICO had to lower costs on its own due to rate increase rejections by the Department of Insurance. Although it eradicated brick-and-mortar services to California customers, GEICO provides presently insured consumers with online options through its website and app. This might frustrate technologically unsavvy customers knowing in-person consulting is unavailable.

Customers are not the only party affected by this swift decision. Hundreds of owners and employees of all 38 GEICO offices in California experienced a massive layoff. These offices are independently owned, and the Sacramento Bee reported agents spent between $100,000 and $250,000 to open them. “Locally owned branch offices were told of the company’s decision in a two-minute zoom call,” (The Epoch Times). The same article explained one owner’s situation: he packed up his office after being open for a year and sought legal representation for the quick shutdown. There have not been any new articles on personal anecdotes or GEICO generally since the beginning of August. If further information is released, the blog will be updated.

Thank you to Ms. Jane Marie Downey, M.Ed, ARM, for contributing to this month’s blog post.

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Trademarks: The Fight for “Dunder Mifflin” Rights

on August 16, 2022

NBCUniversal, LLC has made headlines once again, but this time, it is not to announce a new show or streaming service. On July 1st, 2022, the media conglomerate filed a lawsuit against Jay Kennette Media Group for trademark infringement of the fictional paper company, “Dunder Mifflin,” from the hit U.S. adaptation of The Office (DEADLINE). The suit was filed in the U.S. District Court for the Central District of California. As the lawsuit is in its inception details are limited. In this month’s blog post, readers can expect to find background information leading up to the filed lawsuit, explanations about trademarks and their significance, and insight from Trademark, Copyright, and Apparel Experts.com Member, Mr. Antonio R. Sarabia II.

From 2005-2013, the American version of The Office, starring Steve Carell, Jenna Fischer, and John Krasinski, chronicled the peculiarities and typical workday of office employees at Dunder Mifflin paper company. To say the show was successful is a gross understatement. According to The Washington Post, The Office received 42 Emmy nominations and won a total of 5 nominations during its nine seasons. It recently surpassed another successful NBC sitcom, Friends, for the most streamed show on Netflix in 2020. Given its impact on the public and pop culture, it was sensible for NBCUniversal to keep The Office in-house with the release of its subsidiary, Peacock TV, that same year. The network also attempted to register the trademark for the faux company name for merchandising and sales purposes, but because the Jay Kennette Media Group beat them to the punch in 2016, The U.S. Patent and Trademark Office denied NBCUniversal’s application.

Other than the situation on which this lawsuit is based, the Jay Kennette Media Group is known to register trademarks that belong to other companies and has thus garnered the reputation of an alleged “trademark squatter.” Mr. Sarabia defines a “trademark squatter” as “someone who takes the trademark of another and registers it before the owner does, usually with the intent to sell it back to the rightful owner.” Whether the media group planned to sell the Dunder Mifflin trademark back to NBCUniversal is unknown, but given the recent lawsuit filing, the outcome of who receives the fictional company’s trademark will now be decided by the judge. According to DEADLINE, “The lawsuit aims to end Jay Kennette Media’s use of the Dunder Mifflin name and destroy any remaining branded merchandise. The plaintiffs – NBCUniversal Media LLC, Universal Television LLC, and Universal Studios Licensing – also seek unspecified damages and any profits already derived from sales of the merchandise.” With the background information of this lawsuit in mind, let’s delve into how trademarks are licensed and their importance with further knowledge from Mr. Sarabia.

Q: What are the steps to registering a trademark?

Mr. Sarabia: First, file the application with the U.S. Patent and Trademark Office, then respond to any request for changes from them. In some cases, the U.S. Patent and Trademark Office will reject the application for conflict with a prior application or registration. Assuming that does not happen, next the application is published for opposition. When an application is published for opposition, anyone who believes the application conflicts with their right may oppose the application. That rarely happens. If there is no opposition, the application proceeds, and the U.S. Patent and Trademark Office issues a Notice of Allowance. If proof of use has already been filed, the application will proceed to registration. If proof of use has not been filed, the applicant has time to file that, but it must be done before the mark is registered.

Q: What is the benefit of registering a trademark?

Mr. Sarabia: A registered trademark has nationwide protection and improved damages in case a lawsuit is necessary.

Q: The Jay Kennentte Media Group has become known for being an alleged “trademark squatter.” How prevalent are “trademark squatters?”

Mr. Sarabia: Very common, though less likely in the U.S. than in other countries.

Q: How can businesses prevent being negatively impacted by “trademark squatters”?

Mr. Sarabia: Make sure that their marks are registered in each country in which they sell products or offer services and in those countries in which products are manufactured.

Q: NBCUniversal submitted their trademark application for the fictional paper company, Dunder Mifflin, several years after The Office ended. Is it normal for businesses to delay registering trademarks for products or names?

Mr. Sarabia: It is common, particularly in a situation in which the company is fictional. In other situations, there may be delays because the company may not consider how important trademarks are to its business, a mistake.

A special thank you to Trademark, Copyright, and Apparel Experts.com Member, Mr. Sarabia for graciously taking the time to participate in this month’s blog topic. This post will be updated once a settlement has been determined.

PsychiatryPsychologySexual Abuse

Psychiatry: Religion, Power, and Sexual Assault

on June 15, 2022

Religious communities are one of many places which provide people a sense of belonging. Connecting with fellow congregants with like-minded beliefs brings comfort and safety. However, religious institutions are not exempt from exploiting, coercing, and manipulating devotees into unsavory demands. Experts.com Member and Psychiatry Expert, Dr. Mark I. Levy, MD, DLFAPA, shares insight about abuse, power, and institutional betrayal within religious groups.

Although abuse occurs in every religious institution and denomination, the most recent scandal involves the Southern Baptist Convention. According to AP News, the Southern Baptist Convention’s Executive Committee, along with other high-profile members, currently have a chance to acknowledge a scathing report regarding their lack of action toward allegations of sexual assault. For over two decades, survivors and involved members of the church received unsatisfactory responses to abuse, which included, “resistance, stonewalling, and even outright hostility from some within EC.” An investigation has been conducted and a report was released on Sunday, May 22nd, 2022.

After seven months, a lengthy 400-page report has now been published. It mentioned, “for many years, a few senior EC leaders, along with outside counsel, largely controlled the EC’s response to these reports of abuse…and were singularly focused on avoiding liability for the SBC.” This list was made public days after the investigative report’s release, which was the SBC’s effort to encourage national churches to be “proactive” in defending the vulnerable (FOX News). Ed Litton, Southern Baptist Convention’s President, stated he was “grieved to my core” for the survivors and urged churchgoers to “prepare to change the denomination’s culture and implement reforms,” (AP News). He also vowed to address the failures and the report’s findings during their 2022 national meeting in Anaheim, California on June 14th and 15th, 2022. While the body of the Convention will meet in Anaheim, several high-ranking Executive Committee members will not be attending, as they have relinquished their roles in the church.

The Southern Baptist Convention is not the only denomination to be accused or charged with sexual assault. A recent study by the University of Alberta was released in 2019 detailing patterns of sexual assault in religious and ideological groups. This includes the Catholic Church, Protestants, the Branch Davidians, Fundamentalist Latter-Day Saints, Hindu ashrams, and various cults. Along with academic studies, documentaries such as Leah Remini: Scientology and the Aftermath (Netflix), The Vow (HBO Max), and Keep Sweet: Pray and Obey (Netflix) also expose the coercive abuse that occurs in these groups.

Experts.com Member, Dr. Mark I. Levy, MD, DLFAPA, provides his contributions on the matter. When asked about grooming minors and sexual assault against adults within religious groups, Dr. Levy presents a thought-provoking paradox. He states:

“When humans identify with codes of ethics, which all religions espouse, they put themselves at risk of their own fallible humanity. In general, there’s always this perceived idealization of the role of the person in a morally heightened position and the fact that life is imperfect.”

The discrepancy between the revered status of religious leaders, along with the virtuous sermons they preach, and the egregiously immoral acts committed, is the shock value associated with deplorable situations like the ongoing Southern Baptist Convention scandal. Sexual assault and rape are heinous crimes altogether, but the inconsistency also explains why religious sexual assault contentions make more news headlines than workplace, university, or random abuse cases.

Dr. Levy provides four reasons why sexual abuse continues in religious groups:

  • Authority: The sexual abuse against minors and adults in religious environments has more of an emphasis on a person’s position of authority rather than the ideology itself. “Authority is a critical component to this because a person has to be in a role of trust and respect, which increases the chance of being able to abuse minors. It disarms them when the person is recognized as the leader because they are more prone to trust and believe them.” In communities like churches, repeat abusers in authoritative roles are not quick and brash in pursuing their ulterior motives. Due to their constant access to believers, they meticulously and strategically develop a seemingly benign relationship with their victims to ultimately exploit them at a given opportunity.
  • Power: If authority is the vehicle for abusers, then power, granted by their authority, is the fuel that perpetuates these atrocities. “Sexual abuse is always about power. Sexual abuse of children, which clearly uses that, is also about the sexual gratification of the adult abuser’s needs. They’re peculiar because the sexual interest is focused on minors because of the abuser’s own psychopathology.” Defenders may say it is justified by culture, tradition, and love, but it is illegal under the law because children are not mature enough to give consent.
  • Structure of the Group: “There are particular problems with institutions dominated by men, which are virtually all major religions. One wonders if the leaders of the Catholic Church were female…, whether there would be the same sexual abuse scandal.” This is not to say that women cannot abuse others. However, sometimes the camaraderie within fraternal groups is based on a “boys will be boys” mentality, which tends to excuse abusive behaviors and disregard the damage done to victims.
  • Structure of Belief System: “I think that sometimes within religious belief systems where sin is a prominent concept and confession of sins leads to forgiveness, the psychological damage done, and not to mention the legality of the sin, is often overlooked because it is forgiven in a religious concept.” To reverse this, victims subject themselves to acts they would not do otherwise to avoid sin, reach salvation, or to meet the expectations of the congregation. When church leaders manipulate ideology for their own selfish satisfaction, they violate their congregant’s spiritual, moral, and physical vulnerabilities.

As stated above, offenders in authoritative positions like priests or teachers are typically repeating abusers. Repeat abusers generally commit certain behaviors that allude to deviant motives. Specifically, regarding the adult sexual assault of minors, Dr. Levy has named a few warning signs that can potentially mitigate further abusive situations when identified. These include solely befriending single moms, children having an “adult friend,” overstepping boundaries (children sitting on laps or being invited out to dinner alone), and becoming an “adopted uncle” of the family. Some of these behaviors may not directly indicate the person is an abuser, but all four certainly pose a concern.

If you or someone you know needs support, call 1-800-656-4673 or visit https://www.rainn.org/resources.

AutomotiveEngineeringExpert Witness

Car Recalls: Insight on Causes and Procedures

on May 19, 2022

All man-made products are subject to trial and error during the development process. In some cases, problems occur once a good has been manufactured, shipped, and sold to customers. Recently, two major automotive companies, Ferrari and Volkswagen, recalled thousands of their sports models worldwide. This month’s blog post will explain why the recalls occurred with insight from Experts.com member and Forensic Engineering expert witness Tarek Omar, Ph.D.

Ferrari, the Italian luxury sports car manufacturer, announced its recall of 2,222 cars in China, which will start on May 30th, 2022. According to China’s market regulator, the defect lies in the automotive’s braking system (CNBC). Ferrari confirmed the cause of the said defect, which is the improper venting of the brake reservoir fluid cap. “The safety and wellbeing of our clients is our priority. We operate according to stringent safety and security guidelines to ensure the right systems and procedures are in place at all times,” stated Ferrari. The retracted cars include the 458 Italia, 458 Speciale, 458 Speciale A, 458 Spider, 488 GTB, 488 Spider series models, and cars imported between March 2010 to March 2019.

In the United States and Canada, Volkswagen has recalled 246,000 Atlas and Atlas Cross Sport SUVs (CNBC). The reported issue stems from wiring issues that affect the cars’ airbags, brakes, and windows. The National Highway Traffic Safety Administration stated the wiring issue could lead to the airbags functioning “later than designed,” which leaves consumers susceptible to harm. Volkswagen notified owners and dealers through mail on May 10th, 2022, of the following vehicles subject to the recall: 2019 – 2023 Volkswagen Atlas and 2020-2023 Volkswagen Atlas Cross Sport. Given the provided information, Experts.com member and Forensic Engineering expert, Dr. Omar, has shared his insight on the topic.

Question: Two major car companies, Ferrari and Volkswagen, have recently recalled some of their models. How often do automotive recalls occur?

Dr. Omar: Automotive recalls are very common. There could be up to 50 million cars with a new recalled issue in any given year. Some vehicles may have multiple recalls occurring at different times. A telling statistic is the recall rate which signifies the number of recalled vehicles per 1,000 sold. A study by iSeeCars.com that tracked recalls from January 1985 to September 2016 showed that for the 427,971,556 cars sold during this period, 527,406,263 were recalled yielding a recall rate of 1,115 per 1,000 cars sold. Porsche ranked 1st with 531 per 1,000 and Volkswagen 18th with 1,805. By law, safety defects in vehicles up to 15 years old must be included in recalls.

Question: What is the most common cause of automotive recalls?

Dr. Omar: With the technological advancements in vehicles today, sensors and software are prone to faults and will probably lead the list of common recalls. Traditional safety systems such as airbags, seatbelt tensioners, and ABS braking, as well as modern driver-assist systems such as lane departure, blind spot, forward collision, and rear cross-traffic warnings, rely heavily on properly functioning sensors, computers, and software. Traditional mechanical and electrical issues will of course continue to appear in faulty wiring, fuel lines, brake lines, throttle pedals, and engines, to name a few.

Question: Are recalls usually tied to something that may cause injury? Or are there other reasons for an automotive recall?

Dr. Omar: Recalls could be initiated for any reason, but the most prevalent are safety-related. Whether initiated by the automaker or by the government regulators, the recall is aimed at correcting a defect due to vehicle design, manufacturing, or supply chain issues. Safety recalls are generally for defects that could lead to injury or death. Non-safety recalls might be due to emissions issues, such as the Volkswagen Dieselgate scandal in 2015, and are initiated by the Environmental Protection Agency (EPA). A defect in a vehicle is not always repaired through a recall. Manufacturers often issue Technical Service Bulletins, and the dealers or repair shops will typically repair the defect during routine maintenance visits. However, for safety and environmental defects, a recall must be issued.

Question:  Is there a regulatory process to follow to institute a recall?

Dr. Omar: Yes, there is. The National Highway Safety Administration (NHTSA) is tasked and funded by Congress to oversee vehicle safety and enforce the United States Code for Motor Vehicle Safety [Title 49, Chapter 301]. While NHTSA has the authority to issue recalls, most are actually initiated by automakers. The EPA has a similar regulatory framework for emissions-related recalls.

Question:  What is the average time frame for suppliers and manufacturers to repair the faults for defective cars?

Dr. Omar:  It is difficult to pinpoint an average time. Once a recall is issued the owners are notified by mail that a defect has been identified. It will explain the nature of the defect and provide instructions for getting the defect repaired either by the authorized service center or by software download. The notice will also explain whether the vehicle can be driven prior to the repair or if are any instructions in terms of parking the vehicle (in case of fire due to fuel leaks, battery charging, etc.). Some recall notices may not indicate the proposed solution, and it might take the automaker months to determine how it will repair the defect. Given that notices may not reach the current owners of a recalled vehicle, it may take years for an owner to realize that there is a recall and to get it performed. Owners should frequently check the NHTSA website for ongoing recalls. It should be noted that while repairing the issue is the most common remedy, other options include replacing a defective part, offering a refund, or even repurchasing the vehicle.

Question: In the Ferrari article, CNBC stated that the luxury sports car brand recalled vehicles from March 2010 to March 2019. Why do you think Ferrari waited so long to issue the recall?

Dr. Omar: Ferrari is a low-volume manufacturer, which might affect the process. In general, automakers rely on service centers’ repair records to identify and address potential defects. Typical car models are sold in large volumes, on the order of 100,000 per year, and often substantially more. Some parts are used across models, and that number could be as many as a million or multi-million cars. In the case of Ferrari, the total production is less than 10,000 cars per year and coupled with the fact that they are typically not driven a lot of miles a year, means that the problem reporting will take time. It is very likely that Ferrari did not become fully aware of the issue for several years after the 2010 cars began to sell, and initially offered free repairs under the vehicle warranty. Typically, once the defect is identified the company will analyze manufacturing records to determine how many of the affected parts are in production, was there a specific batch from the supplier, or any other analytics that help bound the issue. By law, the automaker must report the problem and issue a recall immediately once a safety problem is identified, even if they are still investigating the problem and solution.

Question:  How difficult is it to determine a faulty product once manufacturing and sales begin?

Dr. Omar: There are several ways that a fault is identified. First and foremost, through reported problems either from crash data or maintenance service reports. Customer reporting is another factor, and if not addressed by the manufacturer, NHTSA’s Office of Defects Investigations will open an investigation into the matter. Consumer advocacy groups and media often play a role as well in applying pressure on the manufacturer to address the issue.

Question: Both cars recalled sports models. Are sports cars more complex design-wise than other types of vehicles?

Dr. Omar: Not particularly. Sports cars tend to have higher performance components such as engines, transmissions, brake systems, and suspensions, which, unlike regular vehicles, are sometimes pushed to their limit. Given the number of ongoing defect recalls, sports cars make up a small percentage.

China Eastern Airline Aircraft
Accident Investigation & ReconstructionAviationExpert Witness

Aviation: Expert Insight On Flight MU5735 Nosedive

on April 21, 2022

On March 21st, 2022, a Boeing 737 from China Eastern Airlines seating 132 passengers and crew members nosedived into the mountains of China’s Guangxi region. Lamentably, there were no survivors. CNN reported Flight MU5735 was a normal flight that departed from Kunming en route to Guangzhou in South China. The anomaly that has various aviation experts, as well as public agencies perplexed, is the plane’s nosedive position and the rate at which it situated itself into the nosedive. The accident is currently being investigated by China Eastern Airlines, the Civil Aviation Administration of China (CAAC), Boeing, CFM (engine manufacturer), and the U.S. Federal Aviation Administration. Experts.com Member and Aviation Expert, Captain Kit Darby, offers insight into this bizarre and unfortunate aircraft accident.

It is important to provide pertinent information regarding the accident before proceeding with Mr. Darby’s contribution. Airplanes usually begin to gradually descend toward their destination at 29,000 ft. Passengers are supposed to experience minimal turbulence at the stage of the flight, however, the same could not be said for Flight MU5735. According to SFGATE, “the plane’s dive appeared to have halted for about 10 seconds and it climbed briefly, adding an unusual twist to the scenario.” However, the Flightradar24 data track, which derives its information from radio transmissions, reported the plane plunged nearly 26,000 feet within a minute and 35 seconds. In general, it is difficult to place a plane into a nosedive position. Given that Flight MU5735 passed all pre-flight checks, the reality of the aircraft nosediving should not have happened. A second black box – a device that records the condition and performance of planes in midair – was found near the crash site on March 27th, 2022 (ABC7 Chicago). However, due to the mountain region’s muddy terrain, the black box was damaged with possible repair remaining questionable. Luckily, the cockpit voice recorder was located two days later and is currently being analyzed in Beijing with the help of the U.S. National Transportation Safety Board (NTSB) [Reuters]. Providing insight on the matter is Capt. Kit Darby, Aviation Expert, and Experts.com Member:

Question: How often do plane crashes occur?

Capt. Darby: Very rare. Driving a car is much more dangerous than flying in a commercial aircraft.

(Photo 1)

(Photo 2)

This was a scheduled air carrier. This is the safest group of operators by far with only .132 accidents per 100,000 flight hours.

(Photo 3)

The aircraft was at a point in the flight where it would normally start a descent for landing. It appears to have started down normally just before it began its dive.

 Question: What is the most common cause of plane incidents?

 Capt. Darby:                                              (Photo 4)

Question: According to SFGATE, it is difficult for planes to position into a nosedive, which is why this particular crash is odd. Considering the aircraft passed pre-flight checks, what would the plane have to undergo to be situated into a nosedive?

Capt. Darby: Aircrafts are what is called “dynamically stable.” If they are displaced from their normal flying state, they tend to return to their original conditions. If you nose down an aircraft, it speeds up, and the increased speed makes the plane’s nose return to its original level of condition. You would have to push the aircraft’s nose down and then hold it down to sustain a dive as speed increases.

Alternatively, something could break that forces the nose down and hold it there, but I have never seen this happen in my 24,000 hours in the aircraft and 7,000 hours teaching in simulators. Possible, but unlikely. Additionally, the hold could force the aircraft’s nose down and hold it there.

Question: ABC7 News Chicago reported the second black box from the China Eastern Boeing 737 was found. How vital are black boxes for flight investigations?

Capt. Darby: They are key. One records what the aircraft does and the other records the communications between the pilots and the air traffic controllers. Just a note that the “black boxes” are actually bright orange to help locate them in a crash. The flight recorder records 1,000 plus of the aircraft parameters. Speed, heading, altitude, flight controls, gear, flaps, time – almost everything. The plane also has voice recorders that record the radio and intercom communications.

(Photo 5)

Question: How much of the investigation is conducted by locating debris on the ground vs. reviewing the black box recording?

Capt. Darby: In a high-speed crash like this, there is very little that can be learned from the crash site due to the amount of damage done from the high sped aircraft hitting the ground at a steep angle. In this case, the crash was so extreme that the black boxes may be damaged beyond repair and therefore not a useful tool.

As of April 11th, 2022, the investigation is still ongoing. However, rumors regarding the cause of Flight MU5735’s nosedive have been circulating. Online gossip’s latest conjecture is the co-pilot might be culpable for the crash (Global Times). Since official conclusions are yet to be discovered and announced, questionable rumors are to be taken with a grain of salt. This post will be updated once the Civil Aviation Administration of China (CAAC) releases a statement.

Conflict between Ukraine and Russia, male fists - governments conflict concept
EconomicsExpert WitnessInternational TradeSecurity

Experts Weigh In on Crushing Russian Trade Sanctions

on March 22, 2022

After nearly a decade of deep-seated tension between Russia and Ukraine, Russia commenced its invasion on February 24th, 2022. According to the Wall Street Journal, the attack is “President Vladimir Putin’s most aggressive move yet to redraw the boundaries of the former Soviet Union since the end of the Cold War more than 30 years ago.” During the last two weeks, Russia has strategically strengthened its forces in four major Ukrainian cities: Kharkiv, Mariupol, Kherson, and the capital of Kyiv. Putin has also threatened Volodymyr Zelensky, Ukraine’s President, with annexation. Due to the bombings, air raids, and the Russian army pillaging the country, Ukrainian citizens are fleeing their homes seeking refuge in Poland, Hungary, Slovakia, Romania, and Moldova. NATO members have responded to this unjustified attack by imposing financial and trade sanctions against Russia. This blog post will delve into the purpose, logistics, and violation penalties of trade sanctions. Insight has been provided by Experts.com Members and International Trade Experts, Jo-Anne Daniels and Rosemary Coates.

When warfare is mentioned, people tend to imagine soldiers fighting on the battlefield or the vast array of weaponry used to defeat enemies. As the world continues to develop, the modern concept of warfare seems to become more complex and multifaceted than in previous years. Rather than physically attacking countries, world leaders can choose to affect their enemy’s economy and trade deals through sanctions. Regarding the United States, Ms. Coates notes, “Sanctions are often used when America chooses to protect sensitive technology or punish a country for violating certain laws… When sanctions are applied, licenses for export are denied to the sanctioned country and the goods may not be shipped there.” In this case, Russia’s attack on Ukraine has prompted President Biden and other international officials to order trade sanctions to denounce Putin and cripple his economy to such an extent he can no longer continue his attack.

A couple reasons explain why various NATO members like the United States, Germany, and the United Kingdom have imposed sanctions rather than use military force, even to their own disadvantage. The first reason is Russia’s influence on European trade. A statistic from the European Commission states, “The EU is Russia’s biggest trade partner, accounting for 37.3% of the country’s total trade in goods with the world in 2020.” To add, Russia accounts for 26% of the EU’s oil imports and 40% of the EU’s gas imports. A physically combative response to the invasion would be potentially disastrous considering Russia’s nuclear capacity. Sanctions are the lesser of two evils because Europe relies on Russia’s export of oil and gas. They have chosen to endure financial damage over a possible bloody war. Although the United States is not heavily reliant on Russia for trade, it has followed suit by implementing trade sanctions. Ms. Coates stated, “all trade with Russia (except food and medical supplies) is now stopped.”

Another explanation centers around Ukraine’s relationship with NATO. The North Atlantic Council acknowledged Ukraine as an Enhanced Opportunities Partner on June 12th, 2020 (NATO). Since Ukraine is a partner and not an actual member, NATO’s Collective Defense pledge, specifically Article 5 of the Washington Treaty stating “an attack against one Ally is considered an attack against all Allies,” is an inapplicable solution to the country’s plight (Washington Post). Given the Russian government’s unpredictable nature, the possibility of Article 5 being invoked will not be discounted since multiple NATO allies border both Russia and Ukraine (ABC News).

The repercussions of the Kremlin’s actions have significantly impacted the country’s economy and lifestyle to their detriment, alluding to these sanctions’ effectiveness. These sanctions catalyzed a mass exodus of multi-billion-dollar companies from Russia. These corporations include but are certainly not limited to American Airlines, General Motors, L’Oréal, Shell, John Deere, Goldman Sachs, McDonald’s, Starbucks, PepsiCo, Airbnb, Marriott International, DHL, Netflix, The Walt Disney Co., Mastercard, Pfizer, Deloitte, Amazon, Apple, and even Google (NBC News). Russian athletes are also affected by Putin’s decision to invade Ukraine. Professional tennis player, Daniil Medvedev, currently ranked No. 2 by the Association of Tennis Professionals (ATP), may have to condemn President Putin if he wants to participate in Wimbledon (CNN). Another example is Nikita Mazepin’s firing from the Formula 1 racing lineup due to his father’s connections to the Russian government (Washington Post). Various outlets have reported Russia’s occurring financial losses will take decades to recover. “It’s pretty clear that Russia will become poorer and more technologically backward, the choices for its citizens will be radically diminished and for many, many years to come,” a quote from The Hill. The Russian citizens suffer different consequences because of Putin’s actions. The hope is that they put pressure on Putin, so he decides to halt his malicious efforts to usurp Ukraine. However, that is not an easy feat in a totalitarian society. Al Jazeera confirmed Putin had arrested more than 4,300 people at Russia-wide anti-war protests. For now, sanctions will continue to be issued by the international community.

Two government agencies are responsible for establishing sanctions in the United States. The first is the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC). OFAC deals with the authorization of economic and trade sanctions related to national security and foreign policy. The agency mainly targets any entity with a motive to antagonize the United States. OFAC releases an account of Specially Designated Nationals (SDNs) when a sanction is issued. Ms. Daniels explains SDNs are “companies owned or controlled by, or acting for or on behalf of, targeted countries.” Non-country-specific parties like narcotic traffickers and terrorists are also included in the report. For example, since Biden ordered sanctions against Russian banks and oligarchs on February 23rd, 2022, the assets of said banks and oligarchs are blocked. Any U.S. company that willingly or inadvertently conducts business with sanctioned entities will receive penalties, which will be explained in detail later in the post.

The second agency is the U.S. Department of Commerce & Bureau of Industry and Security (BIS). BIS manages U.S. export control policies for three categories: software, technology, and dual-use commodities (i.e., global positioning satellites, missiles, thermal imaging, etc.). According to Ms. Coates, “the export of technology or military items require more formal individual licenses.” As an agency also allowed to administer sanctions, BIS also releases a Consolidated Screening List (CSL) compiled of parties. The U.S. Government holds restrictions on specific exports, re-exports, and transmission of items. Ms. Daniels mentioned the BIS simultaneously issued sanctions against Russia and Belarus, allied with Russia, under the Export Administration Regulations (EAR) and licensing policies to defend U.S. national security. “Furthermore, the new BIS policy regarding the export, re-export, or transfer (in-country) of items that require a license for Russia or Belarus is under a policy of denial with certain limited exceptions. This means that if the export license is denied, the company must cease exporting its products to those countries,” Ms. Daniels stated. Although there are two agencies responsible for establishing sanctions, a third party wields this same power.

As previously mentioned, the President of the United States can also order sanctions against threatening companies, individuals, and countries. If sanctions are summoned through Executive Orders, they are established immediately. Otherwise, there will be a pause. For example, an Executive Order was made on March 8th, 2020, which banned both imports and investments with Russia. Because it continued to sabotage Ukraine’s sovereignty, the United States prohibited products such as “crude oil, petroleum fuels, oils, and products of their distillation, liquified natural gas, coal, and coal product of Russian Federation origin,” said Ms. Daniels. She adds that any written contract or agreements submitted before March 8th, 2022, will be authorized through 12:01 A.M. Eastern Daylight Time on April 22nd, 2022. According to Ms. Daniels, “The General License is available up to April 22nd, 2022, and then the Executive Order issued March 8th, 2022, takes full effect.” With the continuing invasion, NATO countries will issue sanctions to limit Putin’s efforts in undermining Ukraine’s independence.

Companies that violate OFAC and BIS regulations can be subject to civil and criminal punishment. These penalties range from paying hefty fines to serving jail time. Ms. Daniels provided examples of two different companies that have broken regulation policies for both agencies:

  • OFAC: Pennsylvania-based software company, SAP, paid $2,132,174 as a settlement for potential civil liability for 190 OFAC violations. The company was exporting software to Iran, a U.S.-sanctioned country.
  • BIS: In 2014, the Virginia-based business, Patriot 3 Inc., traded maritime jet-boots to the Russian Government Federal Guard Service without an export license. Last year, BIS charged the company for violating this rule of the Export Administration Regulations (EAR). Patriot 3 Inc. agreed to pay $200,000 as a penalty. If Patriot 3 Inc. is untimely with its settlement, the BIS will invalidate its export privileges for two years.

To avoid unintentionally breaking the law, both agencies implore businesses to be vigilant of export regulations, entities classified as SDNs, and parties on the CSL.

The full extent of economic and trade sanctions against Russia are yet to be seen. However devasting they may be, for Russia and its population, does not compare with the death and destruction that has already occurred in Ukraine. A special thank you to International Trade Experts, Jo-Anne Daniels, and Rosemary Coates for their contribution to Experts.com’s latest blog post.

AdvertisingExpert WitnessMarketing

Super Bowl LVI: How COVID-19 Has Influenced Marketing Strategy

on February 8, 2022

It is indisputable that COVID-19 has inflicted its wrath on the United States. Americans have been impacted in ways never experienced before, pivoting from variant to variant while adjusting to ever-evolving public health guidelines from the CDC and other governing bodies. To boot, joblessness has skyrocketed, and inflation is at an almost forty-year high at seven percent. In fact, COVID has affected nearly every aspect of our lives.

Despite the daunting cons, there seems to be a light at the end of this dark two-year tunnel. The opening of concerts, sporting events, playhouses, and other in-person entertainment sites brings hope for a “new normal.” Fans around the country are getting ready to celebrate the biggest game in sports, the Super Bowl. Not just football anymore, the highly anticipated Super Bowl has become unmatched in football strategy, mid-show entertainment, and must-see sponsorships. With the help of Experts.com Member, Dr. Larry Chiagouris, Professor of Marketing, Lubin School of Business, Pace University, this blog will discuss COVID’s impact on the marketing industry and the changes, if any, fans can expect during Sunday’s game.

As a Professor of Marketing, Dr. Chiagouris is aware of the ever-changing shifts in messaging and methods businesses implement. During the pandemic, he noticed the most significant change in business-to-business (B2B) marketing. “For B2B, video sales presentations have become the norm to limit the travel expenses and exposure to COVID-19. What we are learning is that these presentations can be effective, but many marketers are still learning how to more effectively use remote sales tools. Business sales professionals have not yet perfected their game at using virtual presentations effectively.” Visual content is crucial for compelling pitches, negotiations, and overall communication when conducting business remotely. Dr. Chiagouris suggests marketing strategists direct more attention to developing high-quality content and graphics.

For business-to-consumer (B2C) marketing, branding professionals are responsible for capturing consumers’ attention and persuading them to purchase a company’s goods and services in digital and physical spaces. Dr. Chiagouris explains, “Marketers need to better understand the opportunity to reach consumers at home during the day. Because so many white-collar workers are now working from home, daytime television has become a much more popular and effective tool to reach consumers. Particularly moms and dads who are home with children and can be more easily reached during the day than prior to the pandemic.” He suspects two factors will influence marketing this year, more people than ever are working from home, and they care about their safety and security. Since national crime rates continue to climb, Dr. Chiagouris suggests that companies selling security-related products like home-alarm systems and front-door camera apps take advantage of the demand and the number of consumers constantly looking at their screens. Online delivery services will also be in high demand this year. Amazon, Walmart, and Instacart are a click away from all household needs, and Uber Eats, DoorDash, and Grubhub are not far behind with whatever suits one’s palette. Social distancing and integrating the work-from-home lifestyle has required marketers to reach a new level of innovative thinking for campaigns, more like those aired during the Super Bowl.

When the first Super Bowl occurred in 1967, it revolved around the game, the calls, and which team reigned supreme (the Green Bay Packers beat the Kansas City Chiefs 35-10). It was not until 1984 that the most significant event of the year became known for more than just an old-fashioned game of American football. Apple’s “1984” themed commercial announcing their Macintosh Computer was the Super Bowl advertisement that started the trend of “high-end” commercials fans know and love today. According to Business Insider, “Steve Jobs wanted an ad to announce the advent of Macintosh that would stop the world in its tracks.” Apple’s commercial was so successful that it made the Super Bowl the Super Bowl of Advertising from that year forward. Since then, there have been record-breaking ad costs from sponsors to out-perform their competitors year after year. Memorable commercials from Super Bowl LV include State Farm’s “Drake from State Farm,” M&M’s “Come Together,” and Uber Eats “Wayne’s World & Cardi B’s Shameless Manipulation.” An article from Variety stated last year’s Super Bowl produced approximately $545 million in in-game advertising. It is yet to be determined whether last year’s record-breaking cost will be surpassed on Sunday, but the prediction that it can is plausible for two reasons.

(Photo Credit: People Magazine)

According to Statista, during the Super Bowl, there has been a significant increase in 30-second TV advertisements from 2002 to 2021. Because it is one of the most viewed broadcasts annually, sponsors will not hesitate to pay top dollar for airtime. From the statistics, it is inferred that the total cost of in-game advertising would also increase. If this trend continues, Super Bowl LVI is set to surpass last year’s in-game advertising record.

Another component to consider regarding the Super Bowl commercials is the element of surprise. Dr. Chiagouris states that audiences, “Want to see something that they have not seen before. Commercials aired during the Super Bowl which look and feel like all other pre-game spots will not attract the attention needed, given the high cost of commercial time during the Super Bowl. More out-of-the-box thinking and creativity is needed.” These commercials are the most anticipated ads of the year. Instead of turning the channel, people anxiously wait for each new ad. Sponsors realize the more creative the ad, the more revenue for the company. The commercial content Super Bowl sponsors will adopt this year remains to be seen, but it is safe to assume they will not be COVID-19 related. “I think that consumers are fatigued regarding the COVID-19 pandemic and are ready and willing to turn the page,” said Dr. Chiagouris. As vaccines are administered, and businesses are opening again, including the Super Bowl itself, normalcy is reinstated into daily life. Super Bowl Sunday has always been a day to escape, indulge, and engage in friendly competition. COVID-related commercials would perpetuate the doom and gloom Americans are all too familiar with after two years. As Dr. Chiagouris said, sponsors would be wise to keep it lighthearted. The Super Bowl LVI: Cincinnati Bengals vs. Los Angeles Rams airs on Sunday, February 13th, 2022, at Sofi Stadium in Inglewood, California.

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