Tuesday, September 18, 2012

Feds charge 21 in fraudulent student aid schemes - Sacramento Bee

Federal prosecutors have indicted 21 people for allegedly participating in schemes to fraudulently obtain federal student aid at 17 California schools.

The U.S. Department of Justice said Tuesday that 17 defendants were allegedly involved in six schemes that netted $770,000 through fraud. Four defendants were charged in a separate case earlier this year.

Officials say the indictments are part of a federal crackdown on "fraud rings" seeking to exploit financial aid programs.

Several of the schemes involve low-cost online education programs and defendants who had no intention of earning a degree or credential.

The charges were announced by U.S. Attorney Benjamin Wagner and the U.S. Department of Education.

Wagner says "those who rip off federal aid funds can expect to find themselves in a prison cell instead of a classroom."

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