On June 24, 2006, WMR reported: "The epidemic of personal data thefts continues at breakneck speed. Yesterday, the Navy announced that Social Security Numbers and dates of birth on 28,000 naval personnel and family dependents were leaked to a publicly-accessible web site. Shortly prior to that announcement, the Department of Agriculture reported the compromise of 26,000 Social Security Numbers and other personal details on 26,000 Agriculture employees. WMR has previously reported that these thefts are part of a covert U.S. intelligence program to steal personal data on Americans and others to populate Total Information Awareness system surveillance databases. Two officials of two U.S. intelligence activities have confirmed the existence of this program but the FBI has been hamstrung by higher authority not to investigate the thefts thoroughly."
The sources for the information about the intelligence connection to the data thefts were within the Department of Energy at two different locations: Germantown, Maryland and Oak Ridge, Tennessee.
WMR has now learned of another possible use of the stolen personal data: massive money laundering through the Social Security Administration.
A source with a large data processing company that was contracted to process social security payments reported that for a significant period of time hundreds of social security payments were being issued to different names. However, the different names used the same Social Security Number. The social security payments were all directly deposited into the same bank account with that was not associated with a name.
The data processing firm in question was aware of the laundering operation but did nothing to stop the process. There is the possibility that billions of dollars have been laundered through the Social Security direct deposit payment system over the past several years.
In 2007, Representative Elton Gallegly cited the Bank of America and Wells Fargo Bank as turning a "blind eye" to Social Security Number fraud and money laundering in relation to illegal immigration. Gallegly stated: "Wells Fargo was even cited by the Treasury Department last year for 'numerous and recurring deficiencies' in safeguarding against money launderingand terrorist activities. The violations were so egregious that Treasury Department staff recommended a public reprimand. Top officials, however, decided to slap Wells Fargo's wrist quietly and behind closed doors." Gallegly added, "Social Security Numbers have nothing to do with credit." Gallegly also stated that the Bank of America "aids and abets identity theft and money laundering."
In 1988, two E. F. Hutton & Company brokers were indicted for laundering more than a half million dollars for "select clients" using bogus brokerage accounts with false names and Social Security Numbers. One of those indicted, Stephen Fusco, died of cancer in 1985 after the FBI investigation of the operation began.