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CEO Nabbed for Identity Theft From Own Employees 150

Posted by samzenpus from the alright-people-I'm-going-to-need-some-maiden-names dept.
BuzzardsBay writes "And you think your boss is a jerk? Check out this VARBusiness story about a tech CEO the feds say was using his employees' personal information to apply for loans and credit cards to the tune of $1 million. Somewhere a whole lot of businesses who bought this guy's managed-services pitch are cringing with the thought of who is taking care of their data now. And 50 employees are gonna have to sweat out their credit reports even as they look for new jobs. Now that's a lousy boss!"
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CEO Nabbed for Identity Theft From Own Employees More

CEO Nabbed for Identity Theft From Own Employees

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  • I'm a bit slow (Score:5, Funny)

    by Dunbal ( 464142 ) on Wednesday November 01, 2006 @10:52PM (#16684303)
    Hang on. And we're NOT talking about Hewlett-Packard here?
  • Now that's a lousy boss!

    Well, he's either a lousy boss, or a very creative criminal.
    • Funny how often those two things coincide. In this day and age of corperate America the object is not so much to find a boss that doesn't steal(honest)but one that's doing such a good job of stealing from clients that they don't need to steal from you!
    • He's a lossy boss.

    • Re: (Score:3, Insightful)

      by timeOday ( 582209 )
      I guess he's not a criminal until convicted, so here's hoping. I'm taking bets on whether his laywer will try to invent some creative legal defense based on his victims' employment contract. "Employees have no expectation of privacy on company-owned computer systems," or "all goods and information produced during the term of employment are sole property of Jackass Inc." you know, those kind of clauses. Or maybe the boss will sue the company for careless handling of personal information in violation of st

      • Re: (Score:2)

        by jbrader ( 697703 )
        The reason you're paranoid is that I'm out to get you. See you soon.

      • Re: (Score:2)

        by eln ( 21727 ) *
        If he committed the crime, he's a criminal whether he is convicted or not. A suspect is presumed innocent until proven guilty, he is not actually innocent until proven guilty.
      • It's not his fault, he's an addict! That, and some money touched him in a bad place when he was a kid. Now he is just trying to hide it all away to protect the children.

      • Doesn't matter (Score:4, Insightful)

        by Sycraft-fu ( 314770 ) on Thursday November 02, 2006 @11:31AM (#16689945)
        A company can claim that you have no expectation of privacy at work, and to a large extent they are right, still doesn't mean they can break the law. Identity theft is a crime period. It doesn't matter how you got the information. For example my parents probably could, if they wished, steal my identity. They have all the relevant personal info like my name, birth-date, address, SSN, mom's maiden name and so on. What's more, they have it all legally. Most of it they know simply by virtue that I'm their kid. However that doesn't mean they can pretend to be me, I'm not a minor they are no longer my guardians. If they applied for a credit card in my name it'd still be identity theft an/or fraud and they'd still go to jail.
    • Note that creative != proficient. He did get caught, after all.
  • What do you suppose happens to your identity when a dotcom with DBs full of identities are crashing and burning? If there's a chance to patch things up by selling those identities, let me tell you, I've worked for people who would have done so gladly. None of you ever joined Collegeclub.com, did you?

    • Re: (Score:3, Funny)

      by fishbowl ( 7759 )
      "What do you suppose happens to your identity when a dotcom with DBs full of identities are crashing and burning?"

      I expect I still have my identity no matter what.

      But, in all seriousness, I'm not worried about ID theft.

      You see, I have already destroyed my creditworthiness completely. It's hardly a risk that someone will take my info and get any kind of loan or credit card based on them.

      • You see, I have already destroyed my creditworthiness completely. It's hardly a risk that someone will take my info and get any kind of loan or credit card based on them.

        Security through financial obscurity, huh? I can dig it.

        What happens if you ever want to actually get a loan, though?

        • Re: (Score:3, Funny)

          by Nataku564 ( 668188 )
          You steal someone else's identity, of course.

          • Re: (Score:2)

            by kabocox ( 199019 )
            You steal someone else's identity, of course.

            What about an ID renting business. You have poor credit, no credit or had your ID stolen? No problem, we'll loan you one of ours for a low up front price. You just need to find some folks willing to hand over their info and have your company manage their ID and credit profile. I wonder if credit scores would rise if you suddenly had 1,000-2,000 credit cards and were successfully paying them all off. The bad thing is that I really wouldn't want to try figuring out
        • Well there's two basic types of loans any bank will give out. There's the sort where you sit down with an officer and talk about your credit rating and equity and so forth. And then there's the type where you sit down with an officer and talk about the calibre of gun you have under your shirt.

          • Re: (Score:1)

            by fishbowl ( 7759 )
            "And then there's the type where you sit down with an officer and talk about the calibre of gun you have under your shirt."

            I don't understand. I could probably liquidate part of my gun collection, but I'd have to do that through a FFL dealer, not at a bank. And the one piece I have that's worth more than a thousand bucks, would never fit in a shirt anyway.
            • The trick lies in liquidating the officer instead of the gun. Unfortunately, though, it tends to attract other officers who want to liquidate you instead.
            • but I'd have to do that through a FFL dealer

              That's not actually a legal requirement (unless I missed something). I've seen firearms for sale by individuals (not FFLs) at flea markets, in newspapers, etc. Is there a law in your state, or is there a new federal law that sales have to go through FFLs?

              I actually like this idea. It would do almost nothing to prevent honest citizens from buying and selling guns, but could make it harder for criminals to buy guns. It could also hamper straw-buyers from buyi

        • Re: (Score:1)

          by fishbowl ( 7759 )
          >What happens if you ever want to actually get a loan, though?

          Well, last time I got laughed out of the bank :-)

          Ok, I exaggerate a bit. But I am enormously in debt and I don't think I have ever paid a bill on time in my entire life.
        • Well, it depends on how you go about "destroying" your credit. There are people out there that apply for tons of credit card with 0% balance transfer offers, take out PILES of cash, and stick it in 100% secure investments (insured bank accounts, treasury bonds, etc) to collect 5% or more in guaranteed interest (which is then withdrawn and paid back before the 0% offer ends). This has the side effect of temporarily trashing your credit, since all of your credit cards are highly utilized.

          As long as you antic
    • walk the punk CEO into the first conference room to mingle and meet the first five employees.

      carry the punk CEO into the second conference room etc.

      put punk CEO into wheelbarrow for the third room etc.

      pour punk CEO into a glass and carry him into the fourth room etc.

      and on and on until all the employees have had a chance to hands-on with the punk CEO.

      the Department of Justice can provide marshals to escort the punk CEO from room to room. just tell them that the punk CEO had the contract to manage their hea
  • The article seems light on details. Did the guy use some sort of key logger or computer filter, or did he go the low tech route and just use his employee's files from their hiring? Curiosity.
    • The article seems light on details. Did the guy use some sort of key logger or computer filter, or did he go the low tech route and just use his employee's files from their hiring? Curiosity.

      Do you have any common sense? Employers are -required- to have your SS # on file as a course of payroll/taxes.

  • "Bartlett added that he hoped the Compulinx business could continue uninterrupted despite the CEO's legal woes."

    Right.
    • The board should fire the CEO, or if hes the majority holder, first his ownership should be distributed among the employee's whose identities he stole, then the 'new' board shuld fire him, and feel free to hire a new CEO and continue running the company.
  • 1. Incorporate
    2. ??? = Work as a subcontracing corporation
    3. Profit!!!

    (4. -- Don't release ANY legal information to your general contractor)

    I've done this for 18 years, and the tax breaks and freedoms are incredible.
    • This is a brilliant idea.. I am reading Rich dad poor dad and the author talks of the exact same thing. Helps you save on anything and you can literally deduct depreciation, etc right ou of your income and pay tax on what's left alone!
  • and I thought my boss was a pr#$k. This beats anything he has ever done.

  • sweat out their credit reports? (Score:3, Interesting)

    by SuperBanana ( 662181 ) on Wednesday November 01, 2006 @11:27PM (#16684529)

    And 50 employees are gonna have to sweat out their credit reports even as they look for new jobs

    Makes you wonder why the courts don't automatically order credit reports of victims cleaned. The burden should NOT be on the victims, even if it is just a matter of sending a letter to the three agencies with a copy of the court docket or similar...

    Fun trivia I learned from the manager at my co-op bank branch today: utility (cable, phone, power, gas, etc) companies have been moving towards a new electronic check cashing system ,where your bank never gets the cancelled check back.

    Fun, if you need to prove to a credit reporting agency that you DID in fact pay a bill (or a credit line was not listed on your account) since that involves...drumroll please...sending in a copy of the cancelled checks! Likewise for electronic fund transfers and automatic credit card billing. The deck is stacked even further against consumers, just like how you have to pay to get your report if you don't live in certain states...and even if you get the report for free, you don't get your FICO score...

    • I believe your bank should be sending you copies of your "canceled" checks or providing them online. My bank does this, and they make it clear that they are for the same purpose as the real canceled checks were back in the days when banks actually shipped paper checks to the fed.
    • It seems that most of the people here on slashdot agree with the American premise that a person with poor credit should not be able to get a job. Use the saps at this company as an example, they were stupid enough to take this job; they deserve to spend the rest of thier lives flipping burgers.

      I do not agree with this mindset. However, it seems to be the American way, Social Darwinism at near it's worst.

    • I work for a company in the financial services industry.

      Legislation was passed years ago (Check21) that allows for check imaging to be used as a permanent, legal record of the transaction.

      This doesn't explain why the slow-ass banks still take three days to clear your check. We have lightning fast systems and the appropriate legislation, and they are still sitting on your money. Actually, I can explain it: because it benefits them. Unfortunately, Check21 puts very few responsibilities on the banks. Th

    • Re: (Score:2)

      by TheLink ( 130905 )
      Should make the perp do the letter sending.

      Do it to too many and you could be in jail for a very long time sending letters and making phone calls.

    • Re: (Score:3, Informative)

      by wolfgang_spangler ( 40539 )
      The deck is stacked even further against consumers, just like how you have to pay to get your report if you don't live in certain states...and even if you get the report for free, you don't get your FICO score...

      Do you know what a FICO score is? It is a measure of credit worthiness designed by a company based on statistics and probability. It is the product that is sold by a company, the Fair Isaac Corporation. It is the opinion of that company how likely you are to pay back a loan. Why do you feel you
      • Do you know what a FICO score is? It is a measure of credit worthiness designed by a company based on statistics and probability. It is the product that is sold by a company, the Fair Isaac Corporation. It is the opinion of that company how likely you are to pay back a loan. Why do you feel you should be provided with this for free?

        Because they are THE company that pretty much everyone turns to for determining this information and you, as a single person, have virtually no recourse against them if their d

    • Re: (Score:2)

      by Shotgun ( 30919 )
      Was watching a show on CNN last night about digital privacy, cameras, et. al.

      There's all these gray areas about what is or should be public knowledge and what is wrong with someone sharing what is already in the public domain. Why is it a freedom of speech issue for 'Online Tech Magazine' to be able to review motherboards and tell the world that they suck..but when the company that makes the motherboard turns around and reviews the reviewer, showing everyone the PUBLIC records of the multiple fraud convict

  • Massive Installation? (Score:3, Funny)

    by HockeyPuck ( 141947 ) on Wednesday November 01, 2006 @11:34PM (#16684567)
    This cracks me up...

    Compulinx also manages a massive IT infrastructure, which includes four data centers, more than 300 servers and a whopping 40 TB of storage.


    What is this? One midrange disk array?

    I bet if the editor walked into their datacenter they'd find more than 40TB...

    • Re: (Score:2)

      by rk ( 6314 ) *

      You're right. Criminy, I've got about 10% of this much space on home file servers. 40TB was big 10 or maybe even 5 years ago. Not today, it isn't.

      Granted, a terabyte on enterprise class hardware costs a bit more than consumer grade stuff, but still. The little newspaper I work for has almost that much in one chassis in one rack.


    • What is this? One midrange disk array?

      I bet if the editor walked into their datacenter they'd find more than 40TB...

      Is varbusiness.com a porno site?

  • 1. hire lots of employees
    2. ???
    3. profit!

    at least we know what the ??? is now

    • Re: (Score:1)

      by Jzor ( 982679 )
      This guy had it coming from both ends.

      1. Start tech company.
      2. Hire lots of employees.
      3. ??? 4. Profit!!!
      5. Hire more employees.
      6. Steal their identity.
      7. Profit!!!
      8. ???
      9. Go to jail. Do not pass go. Do not collect $200.


      Not only did they have products and services to profit from. This guy squeezed $1 million out of his overhead!

  • Anybody know whatever happened to Scott Draeker? (Or the employee whose credit card was used to make payroll?...)

  • Actually I still think my boss is a jerk...

    (I'm definitely kidding. Got 2 of the best bosses I've ever had just at the moment. And they don't even read slashdot, so this isn't just a suck up).
  • There is only one word to sum up this story and thats unbeleivable!
  • I wonder how many employees were supposed to get an extra large bonus this Christmas.
  • I just had to log in and take a crack at this one! One reason I love slashdot is when I read a post that really embodies the gist of it all and cracks me up. It's like taking a baseball bat, dipping it in epoxy and rolling it in crushed glass the way some of you call people on their bulls$%t! It really gets me fired up and makes me feel hopeful for the future. As a matter of fact, I feel slashdot should have a prime time news show! I'm so sick of the tongue biting mass media that gears itself for an eigh
  • Now, it can be safely said that his employees weren't so discerning as to
    tell a Chalk from Cheese :)

  • Did anyone else notice this awful pornography in the tagging code?

    javascript:tagsOpenAndEnter('06:11:02:0122215', 'asshole','')

  • Since that money was spent on the company, does that mean the employees are the rightful owners of the company and all it's assets?

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