65 indicted in student loan fraud
From Sunshine Review
June 24, 2009 A group of 65 people in Phoenix have been indicted with charges relating to defrauding the government out of more than $500,000 in student financial aid loans. These "straw people" were allegedly recruited by Trenda Lynne Halton, 37, of Peoria, and four others to be non-students applying for student Stafford Loans and Pell Grants.[1]
[edit] Halton
The leader kept records of the process, which allegedly ran between July 4, 2006 and Oct. 30, 2007, with handwritten notes. The notes show much personal, quantitative information of up to 136 straw people involved in the scheme. None of those who applied for these loans in this group were active students, nor did they indent to become so.
She allegedly charged the straw people between $500 and $1,500 each for her help in attaining the grants and loans. They could keep most of the loan money.
[edit] Warrants
Arrest warrants were issued for the 64 alleged fake students, U.S. Attorney for Arizona Diane Humetewa said, after the grand jury ruled.[2] These were the only suspected people out of the total 136 that the grand jury had enough evidence to support indictment.
[edit] The loans
After a news conference on June 24, 2009, Natalie Forbort, special agent in charge at the U.S. Department of Education, said federal aid dollars are limited. There are employees in the department who are trained to recognize schemes, but people are always looking for loop holes, Forbort said.[2]
[edit] External links
- U.S. Department of Education website
- Stafford Loans (FFELs and Direct Loans)
- Federal Pell Grant program website
[edit] References
| |||||||
