Tax-fraud scheme reveals breach in Health Department security

Security-breach notices are being sent to roughly 2,000 Orange County Health Department patients after federal authorities learned employees illegally obtained their personal information to use in a tax scheme.

The alert was issued Wednesday, the same day federal agents arrested now-former Florida Department of Health employees Shanterica Smith and Gerald Williams. Williams’ brother, Delray Duncan, was also arrested.

Federal court records show the investigation into the tax scheme began in November2011, whenthe Orange County Sheriff’s Office found a handwritten list of about 150 names, Social Security numbers and birth dates.

A woman linked to that list, Tanya Fox, told detectives she was supposed to hand the list off to another person, who would use the private information to commit tax fraud, according to documents in the case.

An IRS agent discovered that more than 3,500 tax returns were filed between January 2011 and December 2012 using addresses associated with Fox. Agents determined that the sources of the information were Smith and Williams, court records said.

Of the roughly 3,000 identity theft victims whose tax returns listed addresses associated with Fox, about 2,300 were included in the health department’s record management system. Federal records do not indicate Fox has been charged in the case.

Williams told agents he agreed to give patients’ private information to Duncan because he was having financial problems. Dun- can told authorities that Fox promised him $5,000 for 10 to 20 sets of personal identifying information. Agents said five tax returns totaling $45,387 were deposited into Smith’s bank account.

“We are taking every precaution possible and cooperating with law enforcement to assure all records are maintained with the greatest level of security possible,” said Department of Health in Orange County Director Dr. Kevin Sherin.