By Chris Gonsalves, VARBusiness VARBusiness, Wed. November 01, 2006
Federal law enforcement officials Tuesday arrested the well-known CEO of White Plains, N.Y.-based MSP provider Compulinx on charges of stealing the identities of his employees in order to secure fraudulent loans, lines of credit and credit cards, according to an eight-count indictment unsealed by the U.S. Attorney's office in White Plains.
Terrence D. Chalk, 44, of White Plains was arraigned in federal court in White Plains, along with his nephew, Damon T. Chalk, 35, after an FBI investigation turned up the curious lending and spending habits. The pair are charged with submitting some $1 million worth of credit applications using the names and personal information -- names, addresses and social security numbers -- of some of Compulinx's 50 employees. According to federal prosecutors, the employees' information was used without their knowledge; the Chalks falsely represented to the lending institutions, in writing and in face-to-face meetings, that the employees were actually officers of the company.
Terrence Chalk is also charged with racking up more than $100,000 in unauthorized credit card charges. If convicted, he faces 165 years in prison and $5.5 million in fines, prosecutors say. Damon faces a maximum sentence of 35 years imprisonment and $1.25 million in fines.