From Deseret News archives:

Authorities: State employee used confidential information in identity fraud case

Published: Thursday, April 10, 2008 4:52 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Federal officials said a former state employee who took applications from people seeking food stamps and other welfare aid worked with three others to steal the identity of Utah residents and charge tens of thousands of dollars in purchases.

During a joint press conference Thursday, federal and state officials said this was the largest security breach at the Department of Workforce Services and were working to re-instate the public's trust.

"It is a particularly gross crime," said U.S. Attorney for Utah Brett Tolman.

Authorities unsealed indictments against four individuals, including one state employee.

Charged were Joshua Smith, 32, of Murray; Michelle Chapman, 29, of Murray; John Johnstun, 44, or Midvale and Laura Bustamante, 34, of Midvale.

Authorities said Bustamante had worked on and off with the DWS as early as 2000 and recently had worked as an eligibility specialist, taking applications from Utah residents applying for food stamps, financial aid, child care programs including CHIP and Medicaid.

Deputy DWS Director Christopher Love said Bustamante had access to a database containing personal information from as many as 1,775 individuals, including addresses, Social Security numbers and images of bank statements.

Story continues below
Tolman said an investigation showed less than 100 accounts were used to take out credit cards by the group. According to the indictment, Bustamante would forward to her friends personal information from a DWS database via phone or text. The group would then apply for credit cards using the stolen information. Tolman said on a few occasions the group charged as much as $10,000 to $12,000.

According to the Secret Service, the ID theft began in September of last year. A report of a stolen car last January, in addition to a tip called in to DWS, sparked the investigation. A search at a downtown hotel room where Chapman and Smith were staying yielded a fake state ID card and several credit cards in the name of DWS customers.

Love said Bustamante was immediately placed on administrative leave upon receipt of the tip and she was later terminated.

DWS officials said they were doing everything they could to help victims sort out their credit. Love said the department has sent letters to all DWS customers who were at risk and have contacted known victims by phone. The department has also set up a security support line to help them take steps to minimize the impact of the ID theft. The Utah Attorney General's Office has also established a Web site where customers can obtain free credit reports and learn how to identify potential fraudulent charges.

Comments

You can be the first to comment on this story.

previousnext

Latest comments

Ray, Garrett says global warming probably cannot be stopped. So what exactly...

Utes' Wynn in for awakening

That's why they play them!

BYU would like friendlier rivalry

Not sure where you live (I live in PAC-10 country) and you don't hear stories...

LET ME GIVE YOU AN EDUCATION.....EVERY LDS CHAPEL YOU SEE IN THE WORLD IS A...

Anyone who thinks cut blocks are dirty is ignorant of the rules. Cut blocks...

Jazz players react to RSL title

Yes, upsets are more likely to happen in a single soccer game than a seven...

I agree with Rob. Rep Matheson, we need your vote for healthcare reform. I...

Day care means TV time, study finds

to not have any tv viewing at home. Throw the thing out!

Expect epic clash on the line

Since UTAH is 5-4 since 2000, how can BYU "FAN" talk? With two BCS wins in...

a 30-something to 3 is not a classic.

Advertisements