4 charged in identity-theft ring

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 reinstate 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, of 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.

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.