Benefits November 7, 2006

CEO Steals Identities of His Own Employees

November 7, 2006 (PLANSPONSOR.com) - Federal law enforcement officials have arrested the CEO of White Plains, New York-based Compulinx and issued an eight-count indictment charging him with stealing the identities of his employees in order to secure fraudulent loans, lines of credit and credit cards.
Reported by

Bank Systems & Technology reported that an FBI investigation revealed curious lending and spending habits of Terrence Chalk and his nephew, Damon Chalk.

The two have been charged with submitting some $1 million worth of credit applications using the names, addresses and Social Security numbers of some of Compulinx’s 50 employees. According to federal prosecutors, without the employees’ knowledge, the Chalks falsely represented to the lending institutions that the employees were actually officers of the company.

In addition, Terrence Chalk was charged with making more than $100,000 in unauthorized credit card charges, according to Bank Systems & Technology. If convicted, he faces 165 years in prison and $5.5 million in fines. Damon Chalk faces a maximum sentence of 35 years in prison and $1.25 million in fines.

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