Marn is the first person accused of violating a new law that requires businesses and government agencies to take reasonable measures when disposing of records that contain sensitive personal information. Marn was the president of Fidelity Escrow Services Corp., a company that dissolved in July 2004.

The state alleges financial records of about 1,000 clients who used Fidelity between 1996 and 2000 were dumped in a public recycling bin in Niu Valley. The documents included social security numbers, loan applications, bank statements, tax records and credit reports.

"We have no evidence that any of the information has been compromised or fallen into the hands of identity thieves," said Stephen Levins, executive director of the state Office of Consumer Protection. But he said given the circumstances his office is advising people involved to monitor their credit reports for the next year.

Levins said Marn should have destroyed the files instead of allegedly tossing them away at a middle school recycling bin. Marn could face fines of $2,500 for each document that was improperly thrown away.