Thursday, April 21, 2005

QUEENS DISTRICT ATTORNEY RICHARD A. BROWN URGES TOUGHER PENALTIES FOR IDENTITY THEFT; CITES THREE PROSECUTIONS INVOLVING VICTIMS WHOSE STOLEN IDENTITIES LED TO IRS BILLS OF UP TO $17,000

Queens District Attorney Richard A. Brown today again urged Albany lawmakers to enact tougher penalties for the crime of identity theft. He cited problems the crime that has caused three identity theft crime victims that include costly bills from the Internal Revenue Service of up to $17,000.

District Attorney Brown said, “There can no longer be any doubt that identity theft is a financial plague afflicting millions of victims and costing billions of dollars in losses to consumers, business and financial institutions. We need stronger laws and tougher penalties to deter wrongdoers. My office is currently prosecuting three cases in which identity theft victims have been victimized twice –- once when their stolen identity was taken and used to fraudulently purchase goods or services or obtain employment and a second time when they received a bill for back taxes from the IRS.”

According to the District Attorney, in each instance the victim reported to police the compromise of his or her identity and is using the written report to substantiate a request for consideration to federal and state tax authorities.

District Attorney Brown said, “The bottom line is that reporting identity theft to law enforcement authorities is crucial to establishing proper documentation for subsequent claims to tax authorities. Getting it in writing enhances a tax claimant’s credibility and proof.”

The District Attorney said the three identity theft victims include:

- a 33-year-old saleswoman from Maspeth who first learned that she had been a victim of identity theft when, in 2004, she received a $17,000 bill from the Internal Revenue Service for unpaid back taxes that were actually related to employment earnings of the defendant, Marina Alarcon, 35, of 64-02 Catalpa Avenue Ridgewood, Queens. Defendant Alarcon is alleged to have purchased in 2001 for $100 the saleswoman’s identity information, including her date of birth and Social Security number, and to have used it to obtain in 2001 employment at a leasing company in New Jersey and at other firms. The saleswoman has also received an income tax bill from New York State authorities for the undeclared $17,000 in income. The defendant was arrested on March 24, 2005 and is due back in Queens Criminal Court on April 21, 2005.

- a 30-year-old college student from East Elmhurst who first learned that she had been a victim of identity theft when she saw a copy of someone else’s tax return bearing the names of two of her children. Her cousin, Domingo Ramirez, 20, of 111-46 Corona Avenue in corona, Queens, the investigation has disclosed, was an occasional guest in her cousin’s home where, it has been alleged, he burglarized the house and stole the Social Security cards of her five children along with $1,000 in cash. It is additionally alleged that the defendant used the personal identity information of two the student’s children to file federal income tax returns claiming the children as dependents which resulted in the defendant fraudulently receiving in 2004 federal and state income tax refunds of over $4,300. The defendant was arrested on March 22, 2005 and is due back in Queens Criminal Court on May 9, 2005.

- a 54-year-old quality assurance auditor from Buffalo, New York who first learned that he had been the victim of identity theft when he received a 2004 IRS bill advising him that he owed the government $8,000 in undeclared race track winnings. The auditor, who does not gamble, was one of several individuals whose identity information was allegedly stolen by defendant Ervin Caspi, 50, of 18-30 Whitestone Expressway, College Point. The defendant’s wallet was stolen and his personal identity information is alleged to have ended in the the possession of defendant Caspi who allegedly used it to open racetrack wagering accounts. Additional 2005 racetrack winnings at Aqueduct and other racetrack accounts opened in the auditor’s name are expected to lead to additional tax liability for him. The defendant was arrested on March 2, 2005 and is due back in Queens Criminal Court on April 27, 2005.

District Attorney Brown said, “We need to do more. Our laws have not kept up with the rapidly changing nature of identity theft and our State does not currently offer sufficient protection to consumers and businesses victimized by identity theft.”

In 2002 the Legislature adopted a tough new identity theft law. It made identity theft a felony and provided stiff penalties of up to seven years in prison for the unlawful, unauthorized use of personal identifying information, including names, addresses, driver’s license numbers, Social Security numbers, credit and debit card numbers, bank account numbers, computer passwords, mother’s maiden name and ATM codes.

District Attorney Brown has asked lawmakers to take additional steps in light of changes in the nature and extent of identity theft:

- make the theft of a credit card account number a felony punishable by up to four years in prison and to increase the penalties for the crime of identity theft by creating higher levels of felonies for crimes involving large numbers of victims and substantial amounts of money.

- reduce the cost and inconvenience to victims and businesses by allowing them to submit affidavits rather than appear in person in the Grand Jury to authenticate records or confirm ownership of stolen account numbers.

- provide additional resources to District Attorneys to handle these complex and labor intensive cases, including equipping prosecutors’ offices with specially trained attorneys, detectives and forensic accountants to investigate and prosecute identity theft.

The District Attorney said that instances of identity theft and related financial crimes have risen in recent years and that last year his Economic Crimes Bureau had handled over 2,000 identity theft and fraud complaints.

District Attorney Brown said that New York State stands third in the nation in the number of identity theft complaints and seventh in the nation in per capita identity theft reports. He said that identity theft causes annual losses to businesses and financial institutions of nearly $50 billion and out of pocket costs to consumers of another $5 billion.