Channel Register

Original URL: http://www.channelregister.co.uk/2006/11/02/ceo_id_theft_arrest/

Hi-tech CEO charged with ID theft against staff

By John Leyden
Published Thursday 2nd November 2006 14:46 GMT

The head of a New York-based hi-tech firm has been arrested over charges he used the personal details of his workers to obtain fraudulent loans and credit cards under false names.

Terrence D Chalk, 44, chief exec of managed service provider Compulinx, was arrested on Tuesday and later charged alongside his nephew, Damon T Chalk, 35, with ID theft offences, following an FBI investigation.

Investigators reckon the duo sought to fraudulently obtain up to $1m in credit using the personal details - names, addresses, and social security numbers - of some of Compulinx's 50 workers without their consent. Chalk, who's charged with running up $100,000 of charges on fraudulently obtained credit card bills, faces offences punishable by up to 165 years imprisonment and fines of up to $5.5m if convicted on the eight count indictment he faces. Damon faces up to 35 years imprisonment and $1.25m in fines if convicted.

It's not clear if Compulinx can continue trading in spite of the scandal. Chalk's attorney, Mayo Bartlett of White Plains, New York, told (http://www.informationweek.com/security/showArticle.jhtml?articleID=193501071&subSection=Cybercrime) VARBusiness that he hoped Compulinx could continue operations despite the arrest of its chief exec. ®

© Copyright 2008