Skip Navigation

Mortgage Broker Settles FTC Charges

Bookmark and Share

A mortgage broker who discarded customer information into a publicly accessible dumpster settled with the FTC, garnering a $35,000 fine and other penalties. The broker, Gregory Navone of Las Vegas, Nevada, discarded over 40 boxes of material containing 230 credit reports. Charged under the FTC’s Disposal Rule, the defendant was also penalized for misrepresenting his data security practices. In addition to the fine Mr. Navone will be required to employ a comprehensive information security program for sensitive consumer information, and to hire an independent, third-party security professional to review the program every year for 10 years to ensure that it meets or exceeds the order’s requirements. Mr. Navone could satisfy the requirement to employ a comprehensive information security program by contracting with a NAID member authorized to use the Compliance Toolkit, which as NAID members know is a tool specifically designed to help consumers develop comprehensive information security programs. 

Additionally, NAID’s forthcoming Certified Information Destruction Specialist® accreditation, which will be discussed in greater detail at the upcoming NAID Annual Conference, will give NAID members the opportunity to serve as the independent third-party security professional referenced in the FTC settlement. 

Read the full FTC release here.