CHICAGO – Six former employees of the Chicago campus of the Center for Employment Training (CET) are facing federal charges after allegedly orchestrating a brazen scheme to siphon millions of dollars in federal financial aid using phantom students, according to an indictment unsealed Thursday. The indictment details a years-long conspiracy that exploited the system designed to help legitimate students pursue vocational training.
The accused – MARIE PICKETT, 59, of Chicago; JANIE BLAKENEY, 63, of Chicago; DEBORAH WILLIAMS, 58, of Chicago; JENNY MORALES, 36, of Cicero; HEATHER SMITH, 43, of Cicero; and TAMAURA BALARK, 45, of Chicago – allegedly created fraudulent applications for federal grants and loans between 2005 and 2013. The scheme targeted programs intended for students seeking non-degree, vocational, and technical education. The indictment alleges they knowingly approved aid for individuals who didn’t qualify, including one particularly disturbing instance where aid was claimed for a deceased student.
Federal investigators say the six systematically falsified records to appear compliant with Department of Education requirements. Pickett, who served as Director of the Chicago campus, allegedly oversaw the operation. Blakeney, the Admissions Advisor, is accused of facilitating ineligible applicants. Williams and Morales, Financial Aid Officers, are charged with processing fraudulent applications. Instructors Smith and Balark, both in the Medical Assistance Program, allegedly signed off on the enrollment of these fictitious students.
The indictment reveals the lengths to which the group went to maintain the illusion of legitimacy. In one instance, conspirators fabricated a high school diploma for a purported student, falsely claiming graduation from a Chicago public school. This forged document was then placed in the student’s file to satisfy Department of Education criteria. The U.S. Department of Education ultimately disbursed millions of dollars in fraudulent financial aid to CET as a result of the scheme.
The six defendants face one count of conspiracy to fraudulently obtain federal financial assistance, one count of fraudulently obtaining federal financial assistance, and three counts of wire fraud. Each count of wire fraud carries a potential sentence of up to 20 years in prison. The financial assistance fraud counts each carry a maximum sentence of five years. Federal prosecutors, led by Assistant U.S. Attorney John Mitchell, will bear the burden of proving guilt beyond a reasonable doubt.
“An indictment is not evidence of guilt,” stressed officials in a release. The defendants are presumed innocent and entitled to a fair trial. The investigation was a joint effort by the FBI’s Chicago field office, led by Special Agent-in-Charge Jeffrey S. Sallet, and the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office, under the direction of Special Agent-in-Charge Thomas D. Utz, Jr. Arraignment dates in federal court have not yet been scheduled. The case is being prosecuted by United States Attorney John R. Lausch, Jr. for the Northern District of Illinois.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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