The New York State Attorney General Andrew M. Cuomo- Former State Tax Department Employee Sentenced For Using Position To Steal Taxpayer Identities

ALBANY, N.Y. (January 25, 2010) - Attorney General Andrew M. Cuomo today announced the sentencing of a former state tax department employee who illegally possessed sensitive personal data of hundreds of New Yorkers and used some of that information in an elaborate identity theft scheme.

Walter Healey, 63, of Oakwood Avenue in Troy, was sentenced to 6 months in jail and 5 years probation by Judge Andrew G. Ceresia in Rensselaer County Court. Healey pleaded guilty on June 24, 2009 to Identity Theft in the First Degree (class D felony); Tampering with Public Records in the First Degree (class D felony); Unlawful Possession of Personal Identification Information in the Second Degree (class E felony); and Official Misconduct (class A misdemeanor). As part of his plea, Healey agreed to pay $200,000 in forfeiture.

“Today’s sentence ensures that this breach of public trust by a state employee does not go unpunished,” said Attorney General Cuomo. “This case should stand as an example to others on public payrolls who think they can put personal gain above professional ethics.”

According to the court record, Healey was assigned in 2006 to a Department of Taxation and Finance (DTF) unit that scans identification documents, including social security cards and birth certificates, which taxpayers submit in connection with routine audits. He also had access to various tax documents and returns through DTF’s computer system. Healey took taxpayer identification information from tax department files and used that information to apply for and obtain credit cards. Evidence collected showed at least 90 fraudulent credit cards and other lines of credit at more than 20 banks with unpaid charges on the accounts exceeding $200,000. The scheme was uncovered after another DTF employee noticed irregularities in certain DTF files to which Healey had been assigned. The case was then referred to the Attorney General’s Office.

Also according to the complaint, Healey made unauthorized use of DTF computers to access taxpayers’ personal information, and stored this information at his home. Records show he opened accounts using the Social Security Numbers of at least fifteen different people, including a four-year old boy and at least four individuals who were deceased, including his own mother and sister.

As alleged in the complaint, in October 2008, the Attorney General’s Office obtained and executed a warrant to search Healey’s home in Troy. The search uncovered hundreds of pages of tax records, identity documents, and credit card statements and applications, including:

• Copies of over 700 New York State tax forms containing identifying information of New York taxpayers
• Numerous identity documents, including copies of over 300 birth certificates and over 1,000 Social Security cards in the names of various New York taxpayers and their children
• Hundreds of pages of credit card statements, credit card inquiry letters, credit applications and credit cards in the names of “Walter Healey” and numerous other individuals
  
• Approximately 2,000 Post-It notes with the Social Security Numbers of New York taxpayers handwritten on them - many of them accompanied by handwritten notes such as “good prospect,” “had money,” and “go with this one”

The Attorney General’s Office has contacted victims who had a credit card account applied for or opened in their name. As required by law, state tax officials have sent notification to individuals across the state whose information was breached.

Attorney General Cuomo urges all consumers to be informed. A provision in the Fair and Accurate Credit Transaction Act allows consumers to receive free copies of their credit report annually. Reports can be obtained by visiting www.annualcreditreport.com. Additional information on identity theft is available on the Attorney General’s site at www.ag.ny.gov. More detailed information on remedying the impact of identity theft is available from the Federal Trade Commission at www.ftc.gov/bcp/edu/microsites/idtheft/consumers/index.html and in the FTC booklet, Take Charge: Fighting Back Against Identity Theft, available at www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.pdf.

The case was handled by Assistant Attorney General Lauren Popper Ellis with assistance from Assistant Attorney General Yujin Hong and under the supervision of Stacy Aronowitz, Deputy Chief of the Public Integrity Bureau, Ellen Nachtigall Biben, Special Deputy Attorney General for Public Integrity, Linda A. Lacewell, Special Counsel, and Richard Ernst, Deputy Bureau Chief of the Criminal Prosecutions Bureau.
The investigation was led by Senior Investigator Michael Battisti and Assistant Chief Investigator David Adams of the Attorney General’s Office. Assisting in the investigation were Department of Tax and Finance Investigators Mark Tenzer and Vic Vasta, United States Postal Inspector Ray Smith, and Nicole McNamee-Wicks, Special Agent, United States Social Security Administration.