02:36 GMT - Saturday, 01 March, 2025

Woman admits stealing $5 mil from ED via fake students

Home - Careers & Education - Woman admits stealing $5 mil from ED via fake students

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Posted 2 hours ago by inuno.ai


A North Carolina woman will face up to 20 years in prison after admitting that she scammed the Department of Education out of $5 million in financial aid, USA Today reported

Cynthia Denise Melvin pleaded guilty Wednesday to conspiring with dozens of “straw students” through an elaborate, seven-year scheme, federal court records show. Melvin applied to colleges on the students’ behalf, submitted the Free Application for Federal Student Aid for them, and even went so far as to impersonate the students so it appeared they were attending class and completing assignments, according to charging documents. All the while, she pocketed any leftover aid dollars, giving a small portion to the individuals she was impersonating.

Melvin was charged with conspiracy to commit wire fraud. In addition to her time in prison, she will face three years of supervised release and be required to pay a $250,000 fine, as well as restitution.

The scam is among the biggest “straw student” schemes in years, according to a USA Today review of Department of Justice news announcements.

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