DETROIT, MI — A Detroit woman has admitted guilt in a federal student aid fraud scheme that brought in more than $2.5 million at Wayne County Community College.
Federal prosecutors said the 48-year-old orchestrated a scheme over nearly a decade, stealing funds from the U.S. Department of Education by filing financial aid applications using the identities of more than 80 individuals. She secured high school diplomas for them — many from the same Florida-based online “fast-track” program — submitted aid applications in their names, and completed online coursework to make it appear they were actively enrolled, allowing the aid to continue across multiple semesters, according to the Detroit Free Press.
The Department of Education issued the funds to the college, which first deducted tuition costs before releasing the remaining balance to students for living expenses. These payments are typically distributed through debit cards, checks, or direct deposits, with amounts varying based on financial eligibility.
Authorities said the woman shared a portion of the funds with the individuals whose identities she used, according to FOX 2. In total, she collected about $2.5 million through the fraudulent activity and has agreed to repay the full amount in restitution.
Prosecutors charged the woman and another man in September for their roles in the scheme. The case against the man is still pending in federal court.
“Federal student aid exists to open doors for Americans who are working to better themselves and their families,” U.S. Attorney Jerome Gorgon Jr. said in a statement, according to the Detroit Free Press. “(The woman) slammed those doors shut, turning a lifeline into a racket and stealing millions from a program that belongs to our hardworking neighbors.”
The woman is scheduled to be sentenced on Aug. 3 and could face up to 20 years in prison.