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
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.