A 60-year-old Fayetteville woman has been sentenced to five years in prison for her role in a massive student aid scam that netted over $3.5 million.
Cynthia Denise Melvin, 60, of Fayetteville, was sentenced Tuesday in federal court for her part in a conspiracy to commit wire fraud. She pleaded guilty to the charge on February 26, 2025, and was ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
“This case represents one of the most significant federal student aid fraud schemes ever prosecuted in North Carolina,” said Acting U.S. Attorney Daniel P. Bubar. “We will continue to investigate and prosecute those who seek to steal from programs that help students who need it, as they pursue an education.”
Melvin was accused of organizing and leading a scheme to defraud the federal student aid program between approximately 2016 and 2023. She allegedly used personal identifying information of straw students in North Carolina to submit fraudulent applications for admission at multiple community colleges, including Wake Technical Community College, Cape Fear Community College, and Fayetteville Technical Community College.
According to the investigation, Melvin collected personal identifying information of straw students and used it to submit FAFSA forms through the U.S. Department of Education’s website. She concealed her identity as the preparer and attempted to make it appear that the straw students were attending classes and communicating with the targeted schools.
During the execution of a federal search warrant at Melvin’s residence, investigators recovered evidence establishing the operation and mechanics of the scheme, including personal identifying information and coursework for straw students, FSA account usernames and passwords, and bank account and routing numbers.
Melvin’s sentence was announced after sentencing 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 U.S. Department of Education’s Office of Inspector General is committed to stopping student aid fraud rings and will continue to aggressively pursue those who participate in them, said Acting Special Agent in Charge Andrew Balceniuk.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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