A Jacksonville man pleaded guilty to stealing over a quarter of a million dollars in federal student aid funds and possessing a firearm in furtherance of drug trafficking. Duane Montrik Burton, 47, of Jacksonville, North Carolina, was charged with Conspiracy to Commit Student Aid Fraud, Aggravated Identity Theft, and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
Between 2014 and 2020, Burton fraudulently obtained federal student aid funds in the names of 28 individuals, totaling nearly $300,000. He tricked homeless people into giving him their personal information by claiming he was collecting information for the census and also obtained names and personal information in exchange for illegal narcotics, which he used to fraudulently obtain student aid funds.
Burton submitted false information on the Free Application for Student Aid, provided fabricated documents, and recruited others to take General Equivalency Exams and Placement tests for the named students. He profited by obtaining the refunds issued by Cape Fear Community College to these straw students, which represented the difference between the costs of tuition and the student aid funds disbursed.
Burton also pleaded guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Offense after law enforcement found various amounts of cocaine, marijuana, and opiates, as well as items indicative of drug trafficking, including a scale, cutting agent, packaging material, $9,000 cash, and a loaded firearm during a search of his residence in July 2020.
“The defendant exploited homeless people, trafficked drugs, and took over a quarter of a million dollars intended to support education,” said Michael Easley, United States Attorney for the Eastern District of North Carolina. “My office is working with law enforcement to uncover and stop those who traffic drugs, steal from taxpayers, and prey on the most vulnerable in our communities.”
Burton faces a maximum sentence of 5 years imprisonment and a $250,000 fine for the conspiracy charge and a mandatory sentence of 5 years imprisonment for the firearm charge. The aggravated identity theft charge requires the Court to impose a mandatory sentence of 2 years imprisonment consecutive to any other sentence relating to the student aid conspiracy.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. The United States Department of Education Office of the Inspector General is investigating the case and Assistant U.S. Attorney Susan B. Menzer is prosecuting the case.
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Key Facts
- State: North Carolina
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: DOJ Press Release â†â€â€
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