Why Shred?
Shredding of confidential documents is the only way to ensure that your company is compliant with both state and federal laws.
Violations In The News
The following stories prove the importance of properly shredding and disposing of confidential documents.
Lehman Brothers: Violation of Federal Compliance Law?
In an article posted on Mother Jones September 26, 2008, the counsel of Lehman Brothers CEO Richard Fuld informed the House Oversight Committee that non electronic company documents that were sent, received or reviewed were typically discarded. However, these documents may fall under the federal jurisdictions signed into law after the Enron debacle. These laws require compliance with heightened record-retention procedures. Currently, Lehman Brothers does not appear to have been prepared for meeting these compliance standards. This could lead to serious criminal penalties for the CEO.
Texas Attorney General Files Lawsuit for $2 Million
On October 1st, WOAI in San Antonio, Texas reported that the Texas Attorney General filed a lawsuit against Treatment Associates for $2 million. The lawsuit is claiming that the drug treatment facility improperly discarded the medical records of 44 people into a dumpster. The Attorney General stated that this was a violation of the Identity Theft Enforcement and Protection Act. The discovery of the improperly discarded medical records was first reported by the WOAI investigative team on August 14, 2008. Since some medical files also included personal medical information of family members, the $2 million dollar fine may increase.