FTC Busts Broker for Dumping Files

A company owned by Gregory Navone resided in the building where the dumpster was located.

Navone allegedly placed the tax returns, credit reports and other private information of his customers in the unsecured dumpster. In addition to tax and credit records — mortgage applications, bank statements and photocopies of drivers licenses were found.

The FTC claims he stored the records in his garage before they were hauled off to the dumpster.

Navone allegedly provided prospective borrower with written statements claiming that the companies maintained “physical, electronic, and procedural safeguards that comply with federal standards to store and secure information about you from unauthorized access, alteration and destruction.”

Since 1987, Navone has owned two companies were identified in the complaint: First Interstate Mortgage Corp., which was dissolved in August 2008, and Nevada One Corp. He has also owned numerous other businesses.

“Most of the companies that defendant has owned or directed since 1987, including First Interstate Mortgage and Nevada One, are no longer operational or are currently operated by someone other than defendant,” the complaint stated.

Navone is accused of failing to implement and monitor policies and procedures for the handling of sensitive records by the company, its employees and its service providers.

He is charged with violating the Fair Credit Reporting Act and the rule regarding disposal of consumer report information and records. The broker is also charged with violating the FTC Act because his companies did not maintain the privacy protections spelled out in its statements.

Navone faces up to $2,500 per Fair Credit Reporting Act violation.

Federal Trade Commission, Plaintiff, v. Gregory Navone, Defendant.
Case 2:08-cv-01842, FTC File No. 072 3067, Dec. 30, 2008 (U.S. District Court District of Nevada)