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***mandy*** · 11-02-2006, 10:49 AM,

Quote: Federal law enforcement officials Tuesday arrested the well-known CEO of White Plains, N.Y.-based MSP provider Compulinx on charges of stealing the identities of his employees in order to secure fraudulent loans, lines of credit and credit cards, according to an eight-count indictment unsealed by the U.S. Attorney's office in White Plains.

Terrence D. Chalk, 44, of White Plains was arraigned in federal court in White Plains, along with his nephew, Damon T. Chalk, 35, after an FBI investigation turned up the curious lending and spending habits. The pair are charged with submitting some $1 million worth of credit applications using the names and personal information -- names, addresses and social security numbers -- of some of Compulinx's 50 employees. According to federal prosecutors, the employees' information was used without their knowledge; the Chalks falsely represented to the lending institutions, in writing and in face-to-face meetings, that the employees were actually officers of the company...

full article: http://www.varbusiness.com/sections/news...=193500991

jezebel · 11-02-2006, 10:56 PM,

Quote:Terrence Chalk, a member of Westchester County Business Council's Hall of Fame,

***mandy*** · 11-11-2006, 12:29 PM,

Update on this story: the employees weren't the only ones being scammed.

Quote:One day after the arraignment of its CEO on identity theft and fraud charges, work at MSP firm Compulinx has come to a sudden halt, and Terrence Chalk's claims of a robust business with an international clientele and a growing bottom line are looking more and more like smoke and mirrors.

Former business associates of Chalk say claims that Compulinx had hundreds of customers with data hosted on a massive IT infrastructure of 300 servers and 40 TB of storage in four data centers is nothing more than urban legend.

"[Chalk] got very politically connected, and he made a lot of promises that resulted in an image that he walked on water. But the bottom line is, he had one cabinet in our facility, that was it," says Christopher Furey, CEO of Savvy Networks in Tarrytown, N.Y. "The other three data centers don't exist." ...

full article: http://www.varbusiness.com/sections/news...=193501349