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UPDATE on: Pinnacle sued again

Monday, December 20, 2010

Pinnacle Security got back to me with a response regarding a new lawsuit filed against the company that I wrote about this morning, so I wanted to include Pinnacle's side here.

I’ve just been writing recently about Pinnacle's efforts to fight the negative image that came with an “F” rating that the Utah-based summer model company received from the Better Business Bureau in 2009. Pinnacle contends it is being "unfairly tainted" by the rating now because it has transformed its corporate culture this year to address such issues as “rogue” sales staff using deceptive sales tactics and the state licensing problems that earned it the low ratings. The company now is going around the country saying any problems dated back to a time of explosive growth in 2009, and that the company changed in 2010.

But I had just learned about a lawsuit against Pinnacle filed last week by the Ohio attorney general that makes the same old charges of deceptive practices by Pinnacle's door-to-door sales staff. It seemed at odds with Pinnacle's new image makeover.

However, Stuart Dean, vice president of corporate communications, told me early this afternoon that the claims in the lawsuit appear to predate the changes at Pinnacle.

The company just learned of the lawsuit late last Friday and has not had a chance to review it and can't respond in detail, Dean said. However, he said, "Our understanding is that many of the claims are going back to issues raised in 2009 or earlier."

It's not clear from the filing when the Ohio AG is alleging the violations by Pinnacle took place. I've called the AG's office to find out more and am awaiting a response.

In the lawsuit, filed Dec. 17, Attorney General Richard Cordray accuses Pinnacle “of installing security systems in Ohioans’ homes based on misrepresentations and then failing to honor rights to cancellation.” Cordray says that is among other violations Pinnacle allegedly committed against Ohio’s Consumer Sales Practices Act.

“Through door-to-door sales, this company encouraged consumers to sign contracts and then installed home security systems on the spot,” Cordray said in a statement. “My office received more than 50 complaints, many from consumers who bought the systems based on misrepresentations of the product or its prices. Pinnacle often refused to allow consumers to cancel and continued to bill them for the systems that they did not want. Through today’s lawsuit we are asking the court to issue a permanent injunction to end these sales practices and to order Pinnacle to pay restitution to Ohio consumers.”

Ohio isn’t the only state to have taken action against Pinnacle. The company this year agreed to settle lawsuits filed in 2009 by Illinois and also New York, both of which accused the company of misleading sales practices.

And security giant ADT this November also filed suit  against Pinnacle, alleging it used deceptive sales tactics to steal ADT’s customers. Pinnacle denies that claim, saying the Florida-based ADT is just threatened by Pinnacle’s growing success in the home security market.



Samsung and GVI part ways

Friday, December 17, 2010

Samsung Techwin America announced this morning that it is parting ways with its master distributor GVI. Its distributors and integrators will now be served though its headquarers in Ridgefield Park, N.J.

The company said the move is a realignment to enable them to work more closely with the channel. In a prepared statement, Samsung senior VP sales and marketing Frank De Fina, said: “We want to earn the business by investing resources at the channel level to drive sales to distributors and systems integrators.”

I’ve got a call with Frank De Fina this morning, so will have more info later today.

Low-tech icon of past still useful in modern age

Thursday, December 16, 2010

I recently saw a newspaper story about a New York community considering the removal of its 75 fire alarm call boxes.

What surprised me about the Albany Times Union story was not so much that Rensselaer, N.Y. was thinking about taking its old-fashioned fire boxes down off telephone poles because they’d outlived their usefulness, but that those red-and-white icons first invented nearly 160 years ago still exist in 2010—and in relatively large numbers in that city.

The boxes were a common sight when I was a kid growing up in Michigan, but so were squat black rotary phones in every household then. I thought the world had moved on.


This Albany Times Union photo depicts a firebox in New York.


But then I talked to Ken Willette, manager of the National Fire Protection Association’s Fire Protection Division, and found out that other communities around the nation still use call boxes. The NFPA doesn’t keep track of the numbers of fireboxes out there, but Willette, a former fire chief in Massachusetts, said he knows from experience that they’re still a part of firefighting.


And Willette said that’s because while the boxes have their drawbacks—they can be a cause of prank false alarms by kids—they also can have benefits, even in the 21st century.


For example, he said, they still can be “a lifeline” in poor neighborhoods where residents may not be able to afford the cell phones that people typically now use to alert the fire department of an emergency.

Also, Willette said, when he was fire chief in Concord, Mass. from 2003-2008, the fire department installed one at a skate park so youngsters could call for help in the event of an injury. In three years, he said, “we had maybe two or three times the call box was utilized by teenagers to call for an ambulance … I feel really good about that.”

Fireboxes were introduced in 1852, according to the Times Union. And the paper said the Rensselaer boxes were made by The Gamewell Co.—still doing business today as Gamewell-FCI, a division of Honeywell.

The boxes were in use in hundreds of cities nationwide by 1890, the article said.

But in the 1970s, when false fire alarms caused by “malicious activation” of the fireboxes became big news, a number of them began to be eliminated, according to an NFPA report this fall on false alarm activity in the nation. Today, the report said, the biggest problem with false alarms is no longer call boxes but “nuisance activation of automatic detection systems.”

Despite being thinned out, fireboxes still are around and one reason is that their old-fashioned simplicity makes them useful in emergencies, according to Willette.

“One thing I’ll tell you about the telegraph fire alarm box system is it’s low-tech,” he said. “ … The boxes themselves are mechanical so they’re able to remain in service. There are boxes operating today that are nearly 100 years old, so they’re withstood the test of technology.”

He continued: “They’re low-tech, they’re durable and they don’t depend on electricity. They use electricity with a battery backup … and the attractiveness from an emergency management point of view is that, if the Internet goes down, if you lose electrical power, if the cell towers go down, that system still operates.”

To deal with prank alarm issues, Willette said, a lot of communities have taken such steps as moving the call boxes into areas less prone to such activity or even into buildings, and they’ve added other features, such as a voice feature where you have to pick up a handset and talk to dispatcher.

Also, he said, “they do have alarm boxes now where you don’t have to connect with a wire, and you send a radio signal and those are very robust, very secure and they tend to have few false activations … so some communities have gone to that.”

In the end, Willette said, it’s up to individual towns and cities to decide if fireboxes are still useful to them in this modern age.

“A community has to balance the risks and the costs against the benefit in their specific community,” he said.


Can millions of European "football" fans be wrong? Maybe... But maybe they can also keep your home safe...

Thursday, December 16, 2010

So I was scouring my inbox this morning and came across a Google Alert that claimed to link to the most annoying alarm in the world... Obviously, I had to check it out.

The alarm project is from the U.K.'s Alarm Monitoring Company and consists of a home alarm rigged together with a gaggle of vuvuzelas... you know those annoying airhorn thingies Europeans like using at soccer games?

I have to admit it's pretty dang funny... and effective... When I played the YouTube video, half my office evecuated.

I really like the dry erase board in the video. Reminds me of my first day here at SSN when former editor Sam Pfeifle broke out a bevy of dry erase markers, sat me down in the conference room and illustrated the security industry for me and all the different spokes and verticals in all it's wacky, interconnected glory... I still don't really understand the whole picture, but I'm getting closer every day.

Hurray for innovative new alarms. And hurry for companies that put a little humor into something they obviously love doing--protecting lives and property. I've blogged about security videos before. It's a fun way to bring some light into the industry. I also blogged a while back about, Nasuni, a cloud storage company that was putting a little humor into it's industry through video. I tried to embed the video below, but our new CMS wouldn't let me. Well, click on the link to the vid on YouTube above. Enjoy! With your computer turned way, way up!

Security steps up (or pedals across?) to help those in need.

Tuesday, December 14, 2010

I got a press release from Iverify today. A select group of Iverify employees and family members are coming together to help out a good cause.

From the release:

"Team Iverify, the cycling team sponsored by Iverify.US Inc, the Charlotte NC based video monitoring company,  is pleased to announce it has delivered a donation in the amount of $31,250.00 to the Pan Mass Challenge.  The donation will support   cancer research at the Dana Faber Cancer Center and help support the costs of families with children being treated for cancer.

"The Pan Mass Challenge is the oldest extreme fund raising event in the country. Over 5000 bicycle riders cycle 192 miles in two days starting in the Western Massachusetts town of Sturbridge and ending on the tip of Cape Cod in Provincetown. This year the PMC riders raised and donated $33 Million to the Dana Faber Cancer Institute."

That's pretty cool, I have to say. Security Systems News started the Security 5K--a 5k road race that raises money for Mission 500--at ISC West and expects the race to be even bigger this year than last.

It's nice to see security companies pulling together and helping out those in need. I've done some writing about such initiatives before.

Again from the Iverify release:

"In their fourth year Team Iverify and its riders, Beckie and John Beaupre, Kristan and Will Ash, Eric and Kim Kohler and Iverify CEO Mike May and his wife Tricia, trained for several months in anticipation of the ride.

I interviewed Mike May recently for a story I did after Mike selflessly intervened in an altercation to save the life of a stabbing victim. Pretty intense stuff.

“We are very proud to be able to join thousands of other riders and great organizations like the Jimmy Fund and the Boston Red Sox Foundation in support of the research funding for the defeat this terrible disease," Mike said in the release. "Nothing touches us more and inspires us to make that long ride than the smile on the face of our 17 year old Pedal Partner, Jennat Mustafa, a survivor of Non Hodgkins Lymphoma. We would like to thank the hundreds of folks who worked with us and donated to Team Iverify. You make the difference and deliver the results for our team.”

Good luck in the race guys!

Industry tips hat to Jon Sargent’s service

Tuesday, December 14, 2010

The George A. Weinstock Award is designed to recognize individuals who have devoted a lifetime of achievement and service to the security industry.

It seems as though it was designed expressly for its latest recipient: Jon Sargent.

Sargent, a member of the board of the Electronic Security Association and an industry liaison for ADT, received the prestigious award last week at the California Alarm Association’s winter convention in San Francisco.

The award, established in 1999, was presented to Sargent at a CAA convention dinner on Dec. 10, ADT said in a press release congratulating Sargent on the award.

“Jon Sargent is admired by his colleagues at ADT for his tireless efforts working as an industry advocate and for his ability to facilitate dialogue and goodwill with community, law enforcement and industry stakeholders,” said John Koch, ADT residential and small business president, in the release. “Jon’s service is truly remarkable and this well-deserved recognition distinguishes him as one of the strongest champions on alarm response issues in the United States.”

Sargent has 37 years of experience in the security industry. He is a CAA past president, and represents the California alarm industry as an advisory committee member of the California Department of Consumer Affairs in its Bureau of Security and Investigative Services Division, the release said.

“Sargent has been a diligent worker for industry causes assisting alarm companies and law enforcement agencies as they address alarm management policies,” Matthew Westphal, CAA president, said in a statement.

Sargent’s involvement with the industry makes for a long list. He’s on the board of the East Bay Alarm Association and serves as an industry/law enforcement liaison for the Security Industry Alarm Coalition in the Western states, and has won numerous other awards, ADT said.

Sargent also has been an active participant in alarm management and law enforcement organizations. He is a member of the International Association of Chiefs of Police, the California Peace Officers Association, California State Sheriff’s Association and the False Alarm Reduction Association.

Sounds like Sargent's recognition is well deserved!


Kratos/HenryBros close delayed

Friday, December 10, 2010

The Kratos/ Henry Brothers deal, originally scheduled to close yesterday, Dec. 9, is now scheduled to close next Wednesday, Dec. 15.

The merger was supposed to be approved at a stockholder meeting yesterday, but that timing was apparently derailed by a sharehold lawsuit. Henry Brothers announced yesterday that it is settling a claim brought by an individual stockholder, even though Henry Brothers believes the claim to be without merit.

The lawsuit, a putative shareholder class actions suit "Atoll Advisors v. Henry" was filed by an individual shareholder in New Jersey, according to Henry Brothers.

From the Henry Brothers statement:

"Although HBE believes that the action is without merit, it entered into the memorandum of understanding to avoid the risk of materially delaying the proposed merger with Kratos and to minimize the expense of defending the action. The settlement and dismissal with prejudice, if completed and approved by the court, will resolve all of the claims that were or could have been brought in the action, including all claims relating to the merger (other than claims for appraisal under Section 262 of Delaware law).

The memorandum of understanding provides for the settlement and dismissal with prejudice of the action, subject to customary conditions, including completion of appropriate settlement documentation, consummation of Kratos's proposed acquisition of HBE by merger and all necessary court approvals."

As part of the settlement, Henry Brothers agreed to make "certain disclosures" about the proposed merger that were contained in a Nov. 9 proxy statement supplement. That supplement was mailed to HBE stockholders yesterday, and stockholders are being given a few days to consider the additonal information, which included details of fees paid and stock positions held by different parties. The merger vote is now scheduled for Dec. 15.

The Henry Brothers statement notes that its Board of Directors still supports the merger. "HBE's Board of Directors has not withdrawn, changed or otherwise modified its unanimous recommendation in favor of the proposed merger with Kratos."


Industry teamwork helps fix legislation

Thursday, December 9, 2010

I just learned that the security industry teamed up with environmental groups in a successful “no-nonsense” effort to address a flaw in an important piece of federal legislation.

The effort seems like a good example of how consensus building can work for everyone.

Yesterday, according to the Security Industry Association, the U.S. House of Representatives passed a bill to enact a fix in the 2007 Energy Independence and Security Act—one that SIA has long been seeking.

As SIA explains, the act requires electronic devices to meet certain efficiency standards while in “no-load” mode. However, SIA said, those requirements also apply to security and life safety devices, including video surveillance and access control systems, even though they are always in an “active” mode.

SIA, a trade group for businesses in the electronic and physical security industry, considers that a “nonsensical” requirement, so formed a coalition that it said contained both industry and environmental groups such as the Natural Resources Defense Council, to draft language for a fix.

SIA said that H.R. 5470, sponsored by Rep. Frank Pallone, D-N.J., which passed Dec. 8, contains the new language, which would provide an exemption from the “no-load” requirements for security and life safety products and retain the act’s “active” mode efficiency standards for those products.

“This is an important vote for the security industry,” SIA research director Mark Visbal said. “Members of Congress—like the environmental groups that support this bill—clearly recognize the need to correct this legislative glitch. We thank Congressman Pallone for his efforts to enact this important correction.”

SIA also added that “multiple Senate proposals introduced by Sen. Jeff Bingaman, D-N.M., include the security and life safety exemption, while Pallone’s proposal is a stand-alone measure.”


Please leave your name and contact information for follow up... Please!

Thursday, December 9, 2010

So we're getting ready for our next news wire and preparing to design and lay out our next issue of Security Systems News. That means I gotta be sure all my ducks are in a row...

Plenty of breaking news for the wire on Thursday ... Check!

The top monitoring beat news for my monitoring section ... Check!

A handful of interesting general news stories ... Check!

Special features like How I Use My System and Stats ready to go ... Check!

SSN's hard-hitting NewsPoll for the January issue with lots of chartable data and insightful comments ... Che-- Wait a minute!!!

I got all the data and have some beautiful pie charts now for the January issue and for the premium section of SSN... however, one of the most thorough and insightful comments in the comment section of the poll apparently has no attributed author... It's too bad, too, because someone really put a lot of time into this reposne... Unfortunately, if you don't tell us who you are, we can't and won't reach out to you for more information. Fear not, whoever you are; you're not the only one who commented and didn't leave a name or contact information. In fact, it happens every month. We've been trying to come up with new and exciting ways to remind you to leave your name and contact info, but we're kinda at a loss...

Anyway, here's the posted comment to SSN's last poll...

“During the recession, our employees have had to take on additional responsibilities previously shared by a larger number of employees."

I just gotta say, Amen to that, brother or sister. Seems like we've all had to really step up lately to run more efficiently. Then the nameless commenter goes on, as asked, to elaborate on some of his or her methods for not only attracting and holding onto those quality employees every security exec covets, but also how he or she maintains a paradigmatic work environment.

"1. Appreciation for their efforts is continually communicated individually and to the group. 

2. Employees are aware as to 'who is not pulling their share of the load.'  The need for increased efforts and results are discussed privately with the less productive employees.  If they choose not to improve their job performance, they are replaced.

3. Unnecessary expenses have been reduced or eliminated. It is difficult when employees are asked to sacrifice when they see money 'wasted.'

4. Road blocks are eliminated to make employees' jobs easier.  Management has to be even more aware and involved to make it easier for employees to achieve their goals.

5. Investment in employee training is emphasized.  Not only does this training make the employee more valuable to the company, but it also makes employees feel like they have a future with the company and they are also improving their skills. 

6. Management has to set examples that they are participating in the expense reductions and also putting in the extra effort."

Hear that bailed out financial institution executives...? Anyway, back to the list...

"7. Communication with employees has been increased.  Rumors can be devastating.  Sales, expense reductions and product/business development efforts are communicated.  These communications are two-way communications.  We are looking for employee inputs as to how to best increase sales, reduce expenses, improve our products and processes. 

8. With prospective employees we are honest about the business slow down and explain the efforts we have taken to improve the company and our products.  These changes will continue as the market improves.  We are looking for skilled employees who want to part of an aggressive team oriented company.  Our pitch is that you control your destiny as never before."

That all sounds pretty dang good... Thorough... I just wish I knew who's tight ship I was getting a look at... Please, if this was your comment, let me know so I can put your contact info in file and reach out to you for insight.


Thinking green

Wednesday, December 8, 2010

Green’s been a recurring theme in my reporting this week and for the past couple months.

When I was at ASIS, several integrators/manufacturers where talking about integrating security with energy-  and building management. And, a long those lines,  last week I spoke to Schneider Electric about the security element of their new Green Buildings Segment.   Interesting stuff. 

And, frankly, I just plain like the fact that there's a business case for being green and the fact that the security industry is involved.

This morning, I spoke to Elliott Boxerbaum and Chad Parris, consultants with Security Risk Management Consultants, Inc for a story I’m working on. In case you don’t know them, these guys specify big deal security/building projects around the world and have worked with most of the national and regional integrators in North America.

When I asked Boxerbaum and Parris if they’re doing much work with green buildings, they said yes. In fact, they worked on the largest green building in the state of Ohio. According to some, it's the largest green building in the U.S.

Siemens was the integrator for this job.

The Lazarus building in Columbus  was is a 1.5 million square-foot retail facility that’s now an office building. It earned a Gold level LEED certification. Boxerbaum said building owners get LEED points for things like encouraging staff to ride bikes to work, and having showers on site. This particular building also has a green roof. “It’s like a park with gardens, trees and bushes, picnic tables and benches,” Parris told me. “It’s an interactive urban space on top of the building,” he said.

Sounds great to me, but Boxerbaum pointed out that along with these cool projects come new security challenges for specifiers, integrators and end users. Among them, security implications for parking area for bikes, access to showers, and managing access for the public to a rooftop park in a major city.

New opportunities, new challenges.

I’ll have more on the Schneider initiative and Security Risk Management Consultants here and in the January issue of Security Systems News.