ALBANY- Attorney General Andrew Cuomo Wednesday announced the guilty plea of a former state tax department employee for illegally possessing sensitive personal data of hundreds of New Yorkers and using some of that information in an elaborate identity theft scheme. 

Walter Healey, 63, of Oakwood Avenue in Troy, pled guilty before Rensselaer County Court Judge Andrew Ceresia to Identity Theft in the First Degree (class D felony), which carries a maximum penalty of seven years in prison; Tampering with Public Records in the First Degree (class D felony),  which carries a maximum penalty of seven years in prison; Unlawful Possession of Personal Identification Information in the Second Degree (class E felony) which carries a maximum penalty of four years in prison; and Official Misconduct (class A misdemeanor), which carries a maximum penalty of one year in jail. As part of his plea agreement,

Healey has agreed to pay $200,000 in forfeiture. Sentencing is scheduled for October 30, 2009. 

According to court records, Healey was assigned in 2006 to a Department of Taxation and Finance unit that scans identification documents, including social security cards and birth certificates, which taxpayers submit in connection with routine audits. He also had access to various tax documents and returns through DTF’s computer system.

According to court records, Healey took taxpayer identification information from tax department files and used that information to apply for and obtain credit cards. Evidence collected shows he had at least 90 fraudulent credit cards and other lines of credit at more than 20 banks with unpaid charges on the accounts exceeding $200,000. The scheme was uncovered after another DTF employee noticed irregularities in certain DTF files to which Healey had been assigned. The case was then referred to the Attorney General’s Office.

Healey made unauthorized use of DTF computers to access taxpayers’ personal information, and stored this information at his home.  Records show he opened accounts using the Social Security Numbers of at least fifteen different people, including a four-year old boy and at least four individuals who were deceased, including his own mother and sister.