MONTGOMERY, AL – A brazen scheme to siphon over $1.1 million in federal student aid has landed four Montgomery residents in hot water, with sentences handed down on February 21, 2014, by U.S. District Judge Myron S. Thompson. The quartet – Bobbie Jean Chilsom, Shawn A. Johnson, Sharon Johnson, and Sara Chilsom – were all convicted for their roles in a conspiracy that defrauded the U.S. Department of Education and numerous colleges and universities.
The ringleaders exploited a glaring loophole in the federal system, recruiting individuals who lacked even a high school diploma or GED. False documentation was fabricated – phony diplomas and GED certificates – to facilitate enrollment in institutions. Once approved for financial aid, the Department of Education began dispersing funds intended for legitimate educational expenses like tuition, fees, books, and living costs. But the money never reached its intended purpose.
Bobbie Chilsom received the harshest sentence: 24 months imprisonment, followed by three years of supervised release. She was also ordered to pay a hefty $276,734.27 in restitution. Shawn A. Johnson avoided prison, but received five years of probation, 12 months of home confinement, and 10 weekends in jail, alongside a $222,068.41 restitution order. Sharon Johnson was sentenced to five years probation, 12 months home confinement, 3 weekends in jail, and $397,963.22 in restitution for conspiracy to defraud the United States. Sara Chilsom received three years of probation and must pay $10,845 in restitution.
Investigators discovered the defendants demanded a cut of the living expense funds. Recruited individuals, after receiving their aid, would mail debit refund cards or checks directly to the conspiracy leaders. Evidence revealed many of these individuals either didn’t attend classes or barely participated, effectively pocketing money for non-educational purposes – personal purchases and expenses. The scheme ran from September 2008 to September 2012, racking up a total of approximately $1,152,994 in fraudulent claims.
The “Montgomery Four” aren’t acting alone. A total of thirteen individuals have now been implicated in this widespread fraud. Previously sentenced were Telvin Brown, Sunquesha Gaston, Philanthia Roberts, Printice Johnson, Shirley Johnson, Samuella McMillian, Edmond Lewis Harris, Jr., and Richard Jamar Pinkston, Jr., all on mail fraud charges. Dennis Coleman received sentencing for conspiring to defraud the United States. All defendants are from Montgomery.
The investigation was a collaborative effort by the Department of Education-Office of Inspector General, the United States Secret Service, and the FBI. Assistant United States Attorney Denise O. Simpson prosecuted the case. This case serves as a stark reminder that exploiting federal programs for personal gain will be met with swift and severe consequences.
PRESS CONTACT: Clark Morris
Email: usaalm.press@usdoj.gov
Telephone: (334) 551-1755
Fax: (334) 223-7617
RELATED: Larreka Jackson Sentenced for ID Theft Tax Fraud Scheme
RELATED: Dayton Dealer’s Safehouse Stuffed with Fentanyl
Related Federal Cases
- Montgomery Men Nabbed in $900K Tax Refund Scam · Alabama
- Birmingham Water Works Board Hit by $255K Invoice Scam · Alabama
- Tyson Foods Hit With $500K Fine Over Worker Death · Alabama
- Capitol Waste Inc. Hit with Tax Payback Order! · Alabama
- Lynchburg Developers Hit $1M Restoration Tab for Water Violations · Alabama
Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime