http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/04/02/MNGI75VIEB1.DTLAn Ohio company that outsources U.S. medical files to India, including patient records from several California hospitals, was the victim of an extortion attempt in October by its own workers in Bangalore, who threatened to reveal confidential materials unless they received a cash payoff.
The security breach was alarmingly similar to a threat received by UCSF Medical Center just three weeks earlier from a Pakistani woman who was transcribing the Bay Area hospital's files.
Yet Steven Mandell, head of Toledo's Heartland Information Services, failed to mention the extortion incident when he was summoned last month by anxious California lawmakers to testify on steps his industry is taking to safeguard outsourced information.
"He lied to us," said an angry state Sen. Liz Figueroa, D-Fremont, who chaired the March 9 privacy hearing in Sacramento. "He could have said they had a situation just a few months earlier, and he didn't."