Cynthia Denise Melvin, a 60-year-old grandmother from Fayetteville, North Carolina, has been sentenced to five years in federal prison for her role in a massive wire fraud scheme that stole over $5 million in federal student aid from community colleges across the state.
According to court documents, Melvin organized and led a scheme that involved approximately 80 ‘straw students’ who fraudulently applied for federal student aid at multiple community colleges in North Carolina, including Wake Tech, Cape Fear Community College, and Fayetteville Tech.
Between 2016 and 2023, Melvin collected personal identifying information from the straw students and submitted fraudulent applications to the targeted schools, faking attendance and coursework to receive the financial aid. The scheme resulted in over $5 million in financial aid awards and more than $3.5 million disbursed.
Melvin’s scheme is the largest of its kind ever prosecuted in North Carolina, and she has been ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
‘We have seen dishonest thieves stealing taxpayer dollars all over the country, including right here in Eastern North Carolina,’ said U.S. Attorney W. Ellis Boyle. ‘In her federal student aid fraud scheme, this grandmother stole the most money ever prosecuted in North Carolina.’
Melvin pleaded guilty to the charges on February 26, 2025, and was sentenced by Chief Judge Richard E. Myers, II. The U.S. Department of Education, Office of Inspector General, investigated the case, and Assistant U.S. Attorney Adam F. Hulbig prosecuted the case.
The Office of Inspector General is committed to stopping student aid fraud rings, and they will continue to aggressively pursue anyone who participates in them.
U.S. Attorney W. Ellis Boyle stated, ‘She should have been taking care of her grandkids, setting an example of how to be a good person. Instead, now she will spend half a decade in federal prison apart from them.’
Related Federal Cases
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Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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