Karren Warren, Student Loan Fraud, Virginia 2023

Karren Warren, a 43-year-old woman from Danville, Virginia, has pleaded guilty to student loan fraud, a crime that has caused a significant financial loss to institutions and the United States government.

Warren, who waived her right to be indicted, pleaded guilty on Thursday, [date] to one count of student loan fraud and one count of unlawful transfer or possession of identification affecting interstate commerce.

According to court documents, Warren devised a scheme to defraud the United States Department of Education (USDOE), the American Public University System (APUS), and Capella University by preparing and submitting false FAFSA (Free Application for Federal Student Aid) forms between 2013 and 2018.

Warren admitted to recruiting others to provide her with their personal identifying information, which she then used to prepare and submit fraudulent enrollment applications to USDOE, APUS, and Capella. Once the financial aid was obtained, Warren enrolled the individuals, whose names had been submitted using the false FAFSAs, in online educational institutions. Most individuals enrolled in this manner either did not participate or withdrew from the courses. Warren then converted the federal financial aid funds for her personal use, thus failing to use the funds solely for education-related expenses as required by USDOE.

The scheme caused a loss of at least $264,000 to APUS, Capella, and the USDOE. Warren faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The United States Attorney for the Western District of Virginia, Christopher R. Kavanaugh, made the announcement. The investigation was conducted by the United States Department of Education and the U.S. Postal Inspection Service. Assistant U.S. Attorney Charlene R. Day is prosecuting the case.

Karren Warren, the defendant, will be sentenced at a later date. The Western District of Virginia will provide updates on the case as more information becomes available.