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Thursday, June 01, 2006 

VA Secretary Cost of theft way north of $100M

With millions in danger of identity theft because a data analyst took home a computer disk that was later stolen during a burglary, more than 100,000 aggrieved veterans sought answers from 14 call centers set up by the Department of Veterans Affairs (VA).

Asked at a congressional hearing on the cost for preventing and covering potential losses from identity theft, VA Secretary Jim Nicholson estimated "way north of $100 million" and did not rule out a total as high as $500 million.

While the stolen disk drive did not contain detailed medical records, it did contain codes that describe physical disabilities, Nicholson said.

WASHINGTON – Emphasizing VA’s continued commitment to evaluating and improving procedures related to the handling of sensitive veterans’ data, Secretary of Veterans Affairs R. James Nicholson named former Maricopa County (Ariz.) Attorney Richard M. Romley as his new Special Advisor for Information Security.

Rick Romley is a well-respected attorney and veteran who will provide a critical outsider’s perspective to VA as we work diligently to reform the Department’s information security policies and procedures,” said Secretary Nicholson. “Rick shares my commitment to cutting through bureaucracy to provide results for our nation’s veterans. I am grateful to Rick for agreeing to come to Washington and serve VA and his fellow veterans during this challenging period.”

During this assignment with VA, Romley will serve as a Special Advisor to the Secretary for Information Security, reporting directly to Secretary Nicholson. Romley will be responsible for evaluating the current state of VA’s information security procedures and processes, and developing recommendations for improvement in VA’s information security systems.

I appreciate the confidence Secretary Nicholson is showing in my ability to provide an independent and objective assessment of the existing information security procedures within VA,” said Romley. “Over the next few months, I look forward to serving my fellow veterans by investigating and making recommendations to the Secretary on how the Department can best prevent future information security incidents.”

Romley’s appointment comes a day after Secretary Nicholson’s announcement of a series of personnel changes in VA’s Office of Policy and Planning – the division in which the private information of up to 26.5 million veterans was compromised.

Romley is nationally recognized as a leader in criminal justice, and served four elected terms as the Maricopa County (Ariz.) Attorney (1989-2004). He was responsible for administering one of the largest prosecuting attorney’s offices in the nation, with Maricopa County being the fourth most populated county in the country.Romley has testified before Congress on the issues of violent crime, terrorism, drug trafficking, youth violence, public corruption and victims’ rights. He has also championed many prosecution and reform policies. In the early 1990s, Romley successfully prosecuted “AzScam,” the largest public corruption case in Arizona’s history.

Romley served in the Marine Corps in Vietnam until he was injured. He has received numerous commendations for his service, including the Purple Heart. In 2001, Romley received the Presidential Unsung Hero Award, and Disabled American Veteran of the Year Award from Disabled American Veterans (DAV).

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