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Fraud case troubles tenants

April 1, 2004

The recent identity-theft case that affected Melrose Apartments has raised concerns among students living in the apartments and left many upset at the lack of information they have received regarding the incident.

The case involves MSU student Denita Dorsey, who was charged with stealing more than $100,000 by obtaining other students' information, whose files were privy to apartment employees.

Dorsey, a 22-year-old communication senior, was an employee at Melrose Apartments, 16789 Chandler Road, until her termination in December, when police and apartment officials began to believe she might have been using personal information for her own benefit.

Possible victims could include student tenants at the complex or parents who co-signed rental applications.

"I would have liked to know that something was up back in December when they first knew she was stealing, because I was living here," accounting junior and Melrose tenant Justin Cholewa said. "I could have been a victim."

Dorsey was arraigned and charged in 54-B District Court on Friday on four charges of identity theft and fraud, and it's alleged she stole more than $100,000, using personal information to open bank accounts, apply for credit cards and take out student loans. She faced a judge again Tuesday without an attorney and was charged with three counts of forging checks and one count of larceny.

In those incidents, police believe Dorsey stole her roommate's checkbook and wrote three checks totaling almost $430.

As of Tuesday, police said about five residents of Melrose Apartments had been contacted regarding the theft of their personal information, and investigators now are working to determine if it is linked to Dorsey's case. Dorsey has not been charged in those five cases.

While Dorsey sits in the Ingham County Jail in Mason on a $110,000 bond, many students living in the apartment complex are wondering why management has not informed them of the situation.

"I am going to make sure to look over my credit statements," said Megan Wallace, Melrose resident and Cooley Law School student . "I feel like the management should have sent us something warning us that our credit statements may be weird and notifying us so that we could make sure to check them."

In response to the growing concerns, Robert Kolt, spokesman for Melrose Apartments, said tenants should expect management changes, which partially are in response to Dorsey's case.

"I think what people will see very quickly is a complete management change and a review of all the practices and procedures at Melrose, and they'll be getting a lot more information in the future," he said. "A management change will really help the situation and alleviate any fears people might have."

Kolt said Melrose representatives will try to give out as much information as possible without hindering police investigation. He said they also are working to decide how to help the possible victims, but as of Wednesday, he could not say exactly what would happen.

"The police investigation has to run its course," he said. "They have to see exactly who was affected and how.

"Melrose wants to do nothing but cooperate with the investigation. It would just be premature to say anything right now."

Ingham County Prosecutor Stuart Dunnings III said now that Dorsey has been arraigned, the possible victims in the case will be sent a "victim impact statement," which has the victims itemize the amount of their loss and asks questions, including what an appropriate punishment for the offender should be.

"We hope they complete it and send it back, but not all do," Dunnings said. "Some people might think the amount of money isn't worth it; others think the system will never give them their money back and it's a waste of time, and that's not correct."

Dunnings said if Dorsey is convicted, prosecutors will look to her to reimburse the victims.

"We don't know at this point ? what the total amount of losses will be," he said. "We can't guarantee they're going to be paid back."

Staff writer Jaclyn Roeschke contributed to this report.

Sarah McEvilly can be reached at mcevilly@msu.edu.

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