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Another guilty plea in ID theft ring that used data stolen from Electronic Data Systems

Posted on October 9, 2011 by Dissent

More on a case mentioned previously:

Melinda Clayton of Montgomery, Ala., pleaded guilty to charges of conspiring to defraud the United States by filing false claims, wire fraud and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced.

Clayton admitted that between January and April 2011, she conspired with others to defraud the United States by obtaining or aiding to obtain the payment of false, fictitious and fraudulent claims, in particular by filing false tax returns using stolen identities. Clayton admitted that she and others filed at least 155 fraudulent tax returns using stolen identities and sought at least $494,242 in tax refunds.

Clayton also admitted that she unlawfully obtained and stored at her home tens of thousands of unlawfully obtained names and social security numbers of actual persons from HP Enterprise Services (formerly known as EDS), prisons and health clinics and used these means of identification to prepare and file false tax returns. According to the plea agreement, Clayton admitted that the fraud loss is between $400,000 and $1 million and that the offense involved 250 or more victims. She further agreed to pay restitution in the amount of $494,424.

Sentencing has not yet been scheduled. Clayton faces up to 32 years in prison, three years of supervised release, restitution and a maximum fine of $750,000, or twice the loss caused by the offense.

Source: U.S. Attorney’s Office, Middle District of Alabama

Once again, I contacted HP Enterprise Services to request additional information/clarification, but did not get a response.

So…. how many of the “tens of thousands” of identity records were from EDS?  How many were from prisons and health clinics – and which prisons and health clinics?  And was everyone whose data was found in their possession notified?  There’s so much – too much – we’re not being told.


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Category: Breach IncidentsBusiness SectorGovernment SectorHealth DataID TheftInsider

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