Troy Police Assist in Probe of 11 Indicted in Blue Cross Blue Shield Identity Theft

Eleven metro Detroit residents are charged with identify theft and fraud after the identities of more than 5,000 Blue Cross Blue Shield of Michigan subscribers were recently compromised. (Photo by Mark Oleksiy/Shutterstock)

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A Dearborn man is among 11 metro Detroit residents charged with identity theft and credit card fraud after the profiles of 5,000 Blue Cross Blue Shield of Michigan subscribers were compromised.

Those indicted in the scheme, hatched after employee Angela Patton, 47, of Bellevue allegedly printed and shared screen shots of the profiles, were announced in a press release from U.S. Attorney Barbara McQuade. Besides Patton, those indicted include:

• Sam Patton, 47, of Dearborn;
• Dontez Patton, 23, of Woodhaven;
• Johnathon Weston, 24, of Detroit;
• Charlie Smith, 47, of Detroit;
• Thomas Turner Sr., 47, of Detroit;
• Aramona Coleman, 56, of Southfield;
• Tynekwa Hill, 26, of Pontiac;
• Jeffrey Morton, 41, of Oak Park;
• Verdell Kennedy, 45, of Detroit; and
• Raymond Thomas, 40, of Oak Park.

The government alleges Angela Patton printed the screenshots and gave them the co-conspirators, who used the information to apply for credit cards. The information on the screenshots included individuals’ names, dates of birth and Social Security numbers.

In addition to those arrested in metro Detroit, co-conspirators in possession of the screenshots and counterfeit identification and credit cards in the names of Blue Cross subscribers were also arrested in Texas, Ohio and elsewhere in Michigan, the government said.

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Agents recovered additional screenshots and counterfeit and re-encoded credit and gift cards in warrant searches of the metro Detroit suspects’ residences.

In the news release, McQuade noted the irony that the technology those arrested allegedly used to defraud others “ is also making it easier for law enforcement to catch them.”

She said identity theft prosecution is a high priority for her office because “this crime has become so pervasive and can be so damaging to victims.”

Michigan is one of the top U.S. states for identity theft, the No. 1 consumer complaint in the country for the 15th consecutive year, according to a new study released by the Federal Trade Commission.

With 10,338 identity theft complaints in 2014, Michigan ranked sixth in the Consumer Sentinel Network Data Book analysis, behind Florida, Washington, Oregon, Missouri and Georgia.

The Blue Cross and Blue Care Network said in a news release that its corporate investigators played an active role in recovering the information of 5,514 subscribers.

“I am personally saddened by this former employee’s involvement,” Daniel J. Loepp, president and CEO of Blue Cross Blue Shield of Michigan, said in a statement. “(Her) alleged behavior in no way represents the ethical standards brought to work every day by our more than 7,000 employees, who are committed to serving our members with integrity and honesty.”

Affected policyholders will be notified by mail. They will be offered two years of free credit protection services, the insurer said. Members are encouraged to monitor their Explanation of Benefits statements, and financial accounts and report any inappropriate activity to the Anti-Fraud Hotline at 1-800-482-3787 Monday through Friday from 8:30 a.m.-4:30 p.m.

The company said in the news release that it has taken steps to better secure policyholders private information in the future.

“We have taken a number of deliberate steps to further secure our members’ information from disclosure, including limiting access to members’ Social Security numbers, requiring all employees to change their passwords, and installing new printing devices that require employees to scan their coded badges to print,” said Kevin Klobucar, CEO for Blue Care Network.

The case was investigated by the Southeast Michigan Financial and Cyber Crimes Task Force, which is based at the Novi Police Department and includes U.S. Secret Service, Homeland Security Investigations, the U.S. Postal Inspection Service, and IRS Criminal Investigations agents, according to the U.S. attorney’s press release.

Officers from West Bloomfield, Novi, Royal Oak, Southfield and Troy assisted.