Chesapeake Barber College Owner Gets 5+ Years for $4.5M GI Bill Scam

NORFOLK, VA – William E. Grobes, IV, 45, of Chesapeake, Virginia, is trading his clippers for cell bars. The owner of the now-exposed College of Beauty and Barber Culture (CBBC) was sentenced today to 63 months in federal prison, followed by three years of supervised release, for conspiring to commit wire fraud and money laundering. The scheme bilked the Department of Veterans Affairs out of a staggering $4.5 million.

Grobes pleaded guilty back in November 2016, but the full scope of his deception is only now coming to light. Court documents reveal CBBC was a complete sham, falsely presenting itself as a legitimate barber and cosmetology school approved to educate veterans using Post-9/11 GI Bill benefits. From October 2011 through September 2016, Grobes claimed his school was packed with hundreds of veteran students receiving full-time instruction. The reality? A cynical hustle.

Veterans enrolled in CBBC courses received little to no actual training. Forget lectures, practical exercises, or even tests. Instead, students were simply instructed to sign in and out daily, creating a false record of attendance for the VA. This allowed Grobes to falsely claim tuition payments for each veteran, pocketing the cash while offering a worthless education. It was a brazen betrayal of the men and women who served our country.

The $4.5 million in fraudulently obtained GI Bill funds didn’t just disappear into operating costs. Grobes lived large on the backs of veterans. He’s agreed to forfeit his home, six bank accounts holding over $1 million, and nearly $200,000 in cash that was discovered hidden in a floor safe. Restitution of the full $4.5 million has also been ordered, though recovering those funds will likely be a long and arduous process.

Grobes isn’t the only one facing consequences. His wife and co-conspirator, Katherine Grobes, is scheduled to be sentenced on Friday, March 10. The investigation was a joint effort by the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Veterans Affairs Office of Inspector General, IRS-Criminal Investigation, and the Naval Criminal Investigative Service. This wasn’t just about money; it was about exploiting a system designed to help those who put their lives on the line.

The case was prosecuted by Assistant U.S. Attorney V. Kathleen Dougherty, under the leadership of U.S. Attorney Dana J. Boente. Details about the case, including court documents, can be found on the U.S. Attorney’s Office website for the Eastern District of Virginia and on PACER under Case No. 2:16-cr-154. This conviction sends a clear message: preying on veterans won’t be tolerated.

RELATED: Katherine Grobes Pleads Guilty to $4.5M GI Bill Fraud

RELATED: William Grobes IV Pleads Guilty to $4.5M GI Bill Fraud