N.C. settles file dumping case

N.C. settles file dumping case

	Published : Fri, 09 Feb 2007 00:03 By : Agencies Print this Story

RALEIGH, N.C. (AFX) - Three businesses that dumped files containing customers' and employees' personal information have agreed to pay thousands of dollars in fines and will notify anyone who may be at risk of identity theft, the state attorney general said Thursday.

A total of $65,500 in civil penalties will be paid by Movie Gallery of Dothan, Ala., which owned a video store in Gastonia; Empire Equity Group and the manager of a former Charlotte branch; and Home Finance Mortgage Inc. formerly of Cornelius and its owners, Attorney General Roy Cooper said.

The three discarded old records that included Social Security numbers, bank account information and other personal data on customers and employees, he said.

Empire Equity planned to notify 28 customers, while Home Finance Mortgage estimated 125 to 145 people might be at risk. Movie Gallery had about 3,800 members at the now-closed location, but company officials did not believe that many applications were on file at the time the paperwork was dumped, said Jennifer Canada, a spokeswoman for Cooper.

A state law passed in 2005 requires businesses to destroy or shred records containing personal identifying information when they are thrown away, to keep the data from falling into the hands of identity thieves.

'These companies turned trash into treasure for identity thieves by dumping their customers' personal information,' Cooper said in a statement. 'We won't tolerate companies that break the law and put people at risk of identity theft.'

Canada said she was not aware of any pending criminal charges against any of the businesses or managers.

Movie Gallery agreed to pay $50,000 to the state for dumping files in September that contained information on employees, job applicants and people who sought movie rental memberships at its store, Cooper said.

Empire Equity and Jonathan Lee Bailey, a former manager, agreed to pay $12,500 for dumping files on mortgage loan applicants in October.

Stephen and Terri Newsome, who owned Home Finance Mortgage Inc., will pay $3,000 for dumping files containing personal data on loan applicants in November.