CEO Admits to Stealing Employee Identities to Secure Loans to Keep Business a Float

Desperate times certainly call for desperate measures. But, how desperate can you really get? Well, this one is a new low in our opinion. Terrence Chalk the CEO of Compulinx Managed Services, faces up to seven years in prison after pleading guilty yesterday in U.S. District Court in White Plains to aggravated identity theft and conspiracy. Guess what he did? He stole the identities of his employees to secure loans for his failing computer firm.

In April 2006, Chalk and his company were inducted into the Hall of Fame by the Business Council of Westchester. He also served on the board of the American Red Cross. He was named business person of the year by the Westchester chapter of the Omega Psi Phi fraternity. So, how did a respected business person like this sink to such a low?

As what happens in any small business, cash flow problems popped up when clients were late on payment. So, he went to M&T Bank in White Plains, Bank of America and Hudson United Bank to secure loans and lines of credits. Although, instead of putting his own name on the applications as the business owner, he used employees’ names and Social Security numbers without telling them or getting their permission. Wow.