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2 Indicted In Children's ID Theft

By Amy Davis

POSTED: Thursday, May 28, 2009
UPDATED: 8:34 am CDT May 28, 2009

Local 2 Investigates a possible danger to your children. We keep up with what our children eat, where they play ... anything that could affect their health or safety. But their identities may also be at risk.

Right now, two men are facing trial for stealing and selling the Social Security numbers of more than 100 children.

Local 2 was the only station in court for their first appearance. Investigative reporter Amy Davis has the details of this disturbing crime.

These days who isn't concerned about ID theft? It's a huge problem.

Investigators with the Secret Service and the Harris County Sheriff's Department say what makes this case so much more egregious is that the two suspects who appeared in federal court Wednesday intentionally stole the identities of children.

"Mr. Hill, can you tell us what you have to say to the kids whose credit you ruined?" Davis asked John Hill as he left the federal courthouse. 

"No thank you," he answered. 

Investigators say John Hill of Tennessee bought and sold kids' Social Security numbers to a Houston credit repair business.

The indictment says the owner of that business used the numbers to pad her own customers' credit profiles, allowing them to take out car loans and home mortgages.

"Sir, can you talk to us at all about the allegations and the charges?" Davis asked Hill's attorney as he got into a cab.

"That's all they are are -- allegations," Hill's attorney replied. "He's presumed to be innocent. He was indicted and the process begins today."

The indictment says the men obtained the Social Security numbers. Since kids don't typically have credit reports, court documents say the men added lines of credit to bolster the reports and scores.

The price the men charged per number, according to court documents, was $875.

"I've never knowingly done anything to break the law," Alan Magodoro told Davis.

Magodoro went back into the courthouse to avoid our camera.

Investigators say he obtained the Socials and sold them online from his home in California.

Minutes after he ducked into the federal courthouse, he came back out wearing a different set of clothes.

  "So let me get this straight," Davis said as she approached Magadoro. "You thought it was legal to sell Social Security numbers online?"

"I've never sold anything online," said Magadoro.  "There's an ongoing trial. I will be found innocent. I've never sold Social Securities online. I'm an honest person. I've never broken any laws."

The trial will likely happen sometime this summer. Both men were released on bond.

As for the Houston business investigators say purchased the numbers, it closed last year when the owner was indicted for mortgage fraud. She has since moved to Louisiana pending her trial.

Investigators say the children whose identities were stolen lived all over the country. Their parents had no clue their Social Security numbers were being used until investigators contacted them.
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