FAYETTEVILLE, N.C. – In a stunning revelation of academic deception and financial deceit, Cynthia Denise Melvin, 60, was sentenced to five years in federal prison followed by three years of supervised release for her role in a $3.5 million student aid fraud scheme. Melvin’s guilty plea on February 26, 2025, marks the culmination of an investigation that exposed one of North Carolina’s largest instances of financial aid fraud.
Acting U.S. Attorney Daniel P. Bubar branded the case as “one of the most significant federal student aid fraud schemes ever prosecuted in North Carolina.” Melvin was ordered to pay $3,641,473 in restitution to the U.S. Department of Education, emphasizing the government’s commitment to protecting educational funding.
According to court documents, between 2016 and 2023, Melvin orchestrated a conspiracy involving approximately 80 ‘straw students’ to fraudulently obtain federal student aid at several North Carolina community colleges. The scheme siphoned over $4.7 million in financial aid, with more than $3.5 million actually dispersed.
During the investigation, it was revealed that Melvin obtained personal identifying information of ‘straw students’ and used it to submit fraudulent FAFSA forms, posing as the applicants. She impersonated the straw students for various purposes, ensuring her identity remained concealed. Federal investigators recovered substantial evidence of the scheme from Melvin’s residence.
Andrew Balceniuk, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office, praised the efforts of law enforcement for dismantling the fraud ring and holding Melvin accountable. The Office of Inspector General is dedicated to combating student aid fraud rings and ensuring justice is served.
The case was announced following sentencing by Chief Judge Richard E. Myers, II. It was investigated by the U.S. Department of Education, Office of Inspector General, and prosecuted by Assistant U.S. Attorney Adam F. Hulbig. For more information on the case, visit the website of the U.S. District Court for the Eastern District of North Carolina or PACER by searching for Case No. 5:25-CR-14-M.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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