Three women have been indicted for allegedly running a federal student aid fraud scheme that involved Fullerton College, federal prosecutors said.
From January 2012 to August 2017, two Lancaster women and a Las Vegas woman “obtained identifying information, including names and Social Security numbers, of state prison inmates and other victims, and used this information to fraudulently enroll in community colleges,” a Justice Department news release stated.
According to the indictment, the women used personal information of inmates to enroll in community colleges, Fullerton College among them.
Following enrollment, they filled out the Free Application for Federal Student Aid (FAFSA). The U.S. Department of Education uses FAFSA to administer low-interest loans to eligible students and the Pell Grant Program, a resource that grants funds for education.
The suspects used the funds from these programs for personal expenses, not educational costs.
“As a result of their alleged scheme, the defendants fraudulently caused the United States Treasury to disburse approximately $980,000 in FSA funds on behalf of straw students,” the DOJ said.
All three defendants were arrested this week and were ordered released on bond. An April 25 trial date has been scheduled for them.
If convicted of all charges, each defendant would face a statutory maximum sentence of 30 years in federal prison for each count.
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