Melinda Smith, Mail & Wire Fraud, Virginia 2023

Lynchburg, VA - In a shocking turn of events, three local women have been indicted on federal fraud charges, including mail and wire fraud, student loan fraud, and aggravated identity theft.

According to the indictment, Melinda Smith, 42, Catherine Pankey, 61, and Vernetta Johnson, 40, all of Lynchburg, Va., allegedly engaged in a scheme to defraud insurance companies and the federal student loan program.

The indictment alleges that between 2011 and 2014, Smith, Pankey, and Johnson submitted false applications for federal student aid (FAFSA) to obtain money to which they were not entitled. It is alleged that Smith completed coursework for certain classes, which she at times shared with others, including Pankey, in order to complete a sufficient amount of courses to maintain enrollment.

While enrolled at Liberty University, the indictment alleges that Smith helped Pankey with coursework in exchange for a portion of Pankey’s FSA credit refund.

To further support the scheme, Smith and Johnson allegedly submitted false insurance claims for car accidents that did not occur. In addition, Smith and Pankey submitted a false temporary rental agreement to obtain rental reimbursement in connection with a fire.

The indictment also alleges that Smith committed aggravated identity theft by submitting FAFSA forms and obtaining FSA credit refunds in the names of three other individuals without lawful authority.

If convicted, each defendant faces a maximum possible penalty of up to 20 years in prison on the conspiracy to commit mail and wire fraud charges, up to 20 years on each of the wire fraud charges, up to 20 years on each of the mail fraud charges, and up to five years on each of the student loan fraud charges.

Source: https://www.justice.gov/usao-wdva/pr/trio-lynchburg-women-indicted-federal-fraud-charges