ChoicePoint execs defend selling stock

[seemslikeadream]

ChoicePoint execs defend selling stock

By ROBERT LUKE, MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 02/25/05

Thirteen days after the arrest of a suspect in the ChoicePoint identity theft case — and more than three months before the problem surfaced publicly — the company's top two executives began selling their stock.

Since the sales began in November, ChoicePoint CEO Derek Smith and President Douglas Curling have sold 472,000 ChoicePoint shares worth nearly $21 million, according to the executives' Securities and Exchange Commission filings.

.....

The stock sales — for what the executives described as estate planning and asset diversification — continued this week, even as ChoicePoint's shares began to tumble nearly 10 percent. The identity theft was disclosed publicly only last week.

ChoicePoint chief marketing officer James Lee said outside advisers suggested continuing with the trading program. "Their advice is that the program is fine, even in light of the recent events," he said.

...

Lee said ChoicePoint's board approved the stock trading plan on Oct. 26, the day before police in Los Angeles — after being tipped off by ChoicePoint — made their only arrest in a case that has become the biggest security breach in the company's history. ChoicePoint is notifying about 145,000 people that their personal information — possibly including their Social Security numbers and credit reports — may have been sold to identity thieves.
...

SEC inquiry likely

In an interview with Journal-Constitution reporters Thursday, Smith said he first found out about the identity theft problem in late December or January, which would be about two months after the company notified California law enforcement officials. "I didn't do anything that I had any belief that was inappropriate or whatever," he said. "To the extent that it gives any impression of anything that I knew or the company knew that would have weighted on the value of the stock, then that would be unfortunate. Because it certainly isn't true."

...

"The mere fact that they make that statement begs this question: If a CEO did not know some significant information about the company, why did he not know?" Frenkel said.


more
http://www.ajc.com/business/content/business/0205/25choicestock.html?UrAuth=`NcNUOaNYUbTTUWUXUTUZTZU\UWU^U`UZUbU]UcTYWVVZV

[tanyev]

1. Hey, isn't that very similar to what Dubya did

with his Harken Energy stock in 1990? I'm sure these people will receive the same exacting justice that he did...

[Alpharetta]

2. The shareholders have been silent in the media

But I bet tomorrow's news includes class action rumblings.

These guys cashed out. To claim they did not know the magnitude of the information theft is to claim incompetence to run a data warehouse. The board is stuck. On one hand they have to fire these guys. But on the other, they have to avoid a panic which would push the stock price even lower.

It all goes back to arrogance. Republican-style corporate managers are arrogant to ignore the glaring holes in their plans for growth. In this case, it was a push for revenue and a willingness to do so without safeguards.

[Generic Other]

3. Isn't this what sent Martha to "Camp Cupcake"?

GO TO JAIL, DO NOT PASS GO...

[Mairead]

4. I wonder how many of us are among those whose

information was stolen and sold.

[Toots]

5. Let us hope the list was of Republicans

Shades of Enron. CEOs didn't know what was going on but just decided to sell their stock. Coincidence that the news comes out after they sold their stocks and made twenty million dollars. They are set for life now so who cares what happens to the Company. It is the Republican way. I wonder how much of that twenty million will end up in Cheney's pocket.

[seemslikeadream]

6. ChoicePoint says it bought records of 10,000 Floridians

Friday, February 25, 2005

TALLAHASSEE — The personal records of more than 10,000 Floridians that wound up in the hands of an organized crime ring came from public databases collected, stored and sold by local and state governments to ChoicePoint Inc., a company spokesman said Thursday.

ChoicePoint collects records from public and private credit sources, but the Florida records came from "ChoicePoint public records databases," company spokesman Chuck Jones said.

<snip>

The credit warehouse companies now are allowed to police themselves.

"I am very concerned," Dickinson said. "This seems to be a company that has had more than its share of problems."

With 10,216 possible victims, Florida trails only California and Texas in the number of residents whose personal information — the same information that can be used to open credit card accounts or drain bank accounts — was sold to a gang that has operated for more than a year.

http://www.palmbeachpost.com/news/content/news/epaper/2005/02/25/a16a_flachoicepoint_0224.html

more
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1264740


ChoicePoint Sued Over Identity Theft

LOS ANGELES (Reuters) - A California woman has sued ChoicePoint Inc. (CPS.N: Quote, Profile, Research) for fraud and negligence after criminals gained access to a database of personal records compiled by the company.

The suit, which seeks class-action status, was filed in Los Angeles Superior Court last Friday and claims that for at least five months the company failed to adequately protect people's financial records and confidential information.

more
http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-02-23T172648Z_01_N23621931_RTRIDST_0_BUSINESS-FINANCIAL-CHOICEPOINT-DC.XML

more
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1260370


Huge ID theft case touches Washington (WA state and LA)
Wednesday, February 23, 2005

Huge ID theft case touches Washington
Tightening of data industry laws called for

By CANDACE HECKMAN
SEATTLE POST-INTELLIGENCER REPORTER

More than 3,000 Washington consumers are among those whose personal financial information was released to a massive ID theft operation recently discovered in Los Angeles.

ChoicePoint, a Georgia-based data-mining company, has notified thousands of consumers of the breach and plans to repair its own security problems. The company, which collects information on people and sells it to insurance companies and other businesses, announced that the Los Angeles ID theft ring gained access to the information for nearly 145,000 consumers nationwide.

But even as the company offers to pay for credit reports and credit-monitoring services for people whose information was released, consumer advocates say the incident underscores the need for tougher regulation of the consumer data industry.

And they are additionally concerned that consumers worried about the ChoicePoint breach could fall victim to fraud schemes that prey on their fears. Consumers should be on the lookout for "phishing" and possibly telephone calls claiming to be from the consumer data industry. Phishing is a mass e-mail posing as a government agency or legitimate business asking people to verify or otherwise give up personal financial information.

Credit-reporting agencies would not solicit consumers' data by e-mail.

More
http://seattlepi.nwsource.com/local/213234_choicepoint.html

more
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1260617

[seemslikeadream]

7. SCHUMER: EGREGIOUS LOOPHOLE MAKES MILLIONS OF SOC. SEC. NUMBERS ACCESSIBLE

Previously started at http://www.democraticunderground.com/discuss/duboard.ph...

Re-started to lead with Schumer press release.

Source: http://schumer.senate.gov/SchumerWebsite/pressroom/pres...



FOR IMMEDIATE RELEASE: February 24, 2005

SCHUMER: EGREGIOUS LOOPHOLE MAKES MILLIONS OF SOC. SEC. NUMBERS ACCESSIBLE AT TOUCH OF COMPUTER BUTTON; POTENTIAL FOR IDENTITY THEFT ENORMOUS

Anyone Who Pays “Westlaw” Gets Access to Millions of Soc. Sec. Numbers, from Paris Hilton’s to Dick Cheney’s Without Their Knowledge or Permission

With So Much Personal Information Available in Addition to Soc. Sec. Numbers, Making Chances of Identity Theft Much Higher

Schumer Asks Company to Disable SS Number Searches, Implement Stricter Checks on Access by Clients’ Employees, Interns

Identity theft costs consumers and businesses an estimated five billion dollars per year. Many recent news reports have focused on large scale identity theft by individuals stealing personal information from data mining companies like Choice Point in Georgia. U.S. Senator Charles E. Schumer, a member of the Senate Finance Committee and the Banking Committee, wrote a letter today to the head of Westlaw, a data search company based in Minnesota, asking that an egregious loophole in their Internet-based ‘People-Find’ be disabled for use by its clients. This letter is a follow up to Schumer’s phone conversation with the President of Westlaw, Peter Warwick, earlier this month in which the Senator asked exactly who may have access to their “People-Find” database and strongly recommended Westlaw disable it until better protections were in place to prevent misuse by clients.

Schumer said, “This egregious loophole makes millions of Social Security numbers available at the touch of a computer button. Average Americans are just as vulnerable to identity theft as Vice President Dick Cheney and supermodel Paris Hilton. The employees and interns of corporations, the Federal court system, and the United States Senate do not need unfettered access to millions of Social Security numbers and other private information.”

“Westlaw’s ‘People-Find’ service might as well be the first chapter of ‘Identity Theft for Dummies.’ Criminals no longer need forage through dumpsters for discarded bills - they just need to send Westlaw a check and they're in the identity theft business,” Schumer said in his letter to Warwick. “Any Westlaw user who pays for your ‘People-Find’ database can obtain the social security number of virtually any person in the United States.”

This loophole was brought to the Senator’s attention by a constituent who works for the federal courts who then contacted a Schumer staffer who confirmed that the Senate office also has access to this feature. We have also learned that private companies (and their employees/interns) subscribe to this service and have unfettered access to social security numbers.

“When I called Westlaw, I learned that this service is available to anyone who is willing to pay for it, regardless of their need for it and without cursory background checks. Westlaw relies on an on-your-honor affirmation by users that they will not use the information they find illegally.”

“I plan to introduce legislation in the very near future to plug these egregious loopholes allowing millions of Social Security numbers to be on the Internet.”

Schumer concluded, “Rather than receiving assurances that the problem would be remedied, my office received a letter from Westlaw’s legal representation that failed to address the central issue - that there are no real standards for keeping sensitive personal data out of the wrong hands.”

Attached is the letter to Westlaw President, Peter Warwick.

Attached is the letter to Senator Arlen Specter.


=========================================================

From the original post:

Live on CSPAN - Senator Schumer is describing a law firm that with a subscription, anyone's identity can be determined. Qualification is to be a member of the government agency or a private company.

No background check, no need to know.

Claims his office found social security numbers, home addresses, etc for 95% of all they tried, including himself, Pataki, Ashcroft, Cheney.

Spoke to company owner, asked to cease and decist. No action in two weeks.

Westlaw's lawfirm is Holland & Knight. Blew Schumer off.

Has asked AG to investigate.

More about Schumer press conference to follow......

more
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=3170867

[auburngrad82]

8. Can you say "insider trading" boys and girls?

I knew you could...

[Gabi Hayes]

9. This just in: Ken Lay, Jeff Skilling defend sale of Enron stock, blame

company's demise on lazy, greedy workforce

[Megahurtz]

11. WTF?

Lol! Hilarious pics!:D

[seemslikeadream]

10. California authorities estimate up to 500,000 could be affected

Formed in 1997 as a spinoff of credit reporting agency Equifax Inc., ChoicePoint has 19 billion public records in its database at its suburban Atlanta headquarters, including motor vehicle registrations, license and deed transfers, military records, names, addresses and Social Security numbers.

It revealed last week that thieves apparently used previously stolen identities to open ChoicePoint accounts and received volumes of data on consumers, including names, addresses, Social Security numbers and credit reports.

Choicepoint says 144,778 people may have been affected by the breach, while California authorities estimate up to 500,000. The ring operated for more than a year before it was detected and used the information to defraud at least 750 people, investigators said.


more
http://www.11alive.com/news/news_article.aspx?storyid=59507

[Megahurtz]

12. Greed, Greed, Greed.

Bush and Co. just thrive on stuff like this.

[Coastie for Truth]

13. Gonzales won't do crap -- call in Spitzer and Lockyer (and Lerach)

Gonzales (Geneva Convention is obsolete) won't do crap -- call in Eliot Spitzer and Bill Lockyer (and Bill Lerach).

[IndianaGreen]

14. And they threw the book at Martha Stewart for far less than these men did

Do I detect a double standard here?

[JPZenger]

15. Can't Opt Out of Choicepoint

With many data bases, a person can "opt out." However, ChoicePoint does not allow it. That wouldn't be such a problem if their data base only included credit records. However, they sell driver's records, insurance claims and much other information. Up until recently, the information they sold included social security numbers.

[adarling]

16. sold it before they knew

It says in the articles they went through the FEC before this was all released in October, they didn't do anything wrong, this is just the Atlanta Journal trying to make some money cause it is the shittiest paper int he world

[greatbubba]

17. Yeah they did a background check on me when I applied for a job

[daleo]

18. These guys better be Republicans, or they're in big trouble. n/t

[adarling]

19. AJC crap

Those guys at that newspaper suck, they only do their reporting by phone or through the internet. Plus, they had every right to sell their stock. They went through the right system, i think all of this insider trading thing is taking away the bigger deal that there are people that actually fool a company of this size into giving information on everyone of us. Also, did anyone here about the Bank of America thing that just happened....1.2 MILLION people in their system just had their information taken, something about they lost information when it was traveling on airplanes. They should be covering this rather than ChoicePoint, this affects alot more.