Ohio Couple Nabbed in $2.3M Student Loan Scam

CANTON, OH – A husband and wife team operating a sham college in Canton, Ohio, are trading lecture halls for jail cells after being sentenced for a $2.3 million student loan fraud. John “Richard” Ceroni, 65, and Adale “Marie” Cernoni, 63, systematically bilked the U.S. Department of Education by enrolling ineligible students with fabricated high school credentials and pocketing the federal aid.

Richard Ceroni received a 69-month prison sentence, while Marie Cernoni will spend 55 months behind bars. Both were ordered to pay restitution exceeding $2.3 million, a pittance considering the damage done to the federal student aid system and legitimate students. The pair pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. Richard Ceroni also admitted to obstruction of justice, attempting to cover his tracks as the scheme unraveled.

The Ceronis founded Carnegie Career College, presenting it to the public as a legitimate not-for-profit offering associate degrees and certificate programs – a facade built on lies. Beginning around 2003, they secured approval to participate in the federal student financial aid (SFA) program. Behind the scenes, however, they were actively recruiting students without high school diplomas or GEDs, individuals who were explicitly ineligible for aid. To circumvent the rules, they purchased fake diplomas and transcripts from online sources, including an Australian outfit called Adison High School.

The scheme was particularly audacious. Students weren’t required to attend classes or complete coursework, effectively receiving a degree for a payment. The Ceronis falsely promised prospective students a high school diploma funded by a “church scholarship,” a blatant ploy to boost enrollment and access more federal funds. Marie Cernoni, responsible for the school’s finances, even authorized payments for diplomas with graduation dates predating the widespread availability of the internet – a detail that should have raised red flags, but didn’t.

The ill-gotten gains weren’t used to improve the college or benefit students. Instead, the Ceronis commingled the fraudulent funds with personal accounts and used the money to fund lavish expenditures and expand their operation. Between February 2011 and February 2012, Marie Cernoni alone withdrew over $475,000 in cash from accounts tied to a tax-exempt charitable organization, Historical Chapel Ministries (HCM), which shared the same building as the college. This money, investigators found, was used to pay “volunteers” and further enrich the Ceronis. HCM itself appears to have been a sham, lacking regular services or a genuine congregation.

The Ceronis’ greed ultimately led to their downfall. From a single-family home “campus” in Canton to a commercial building housing a driving school and massage parlor alongside Carnegie College, their empire of deceit crumbled under the weight of evidence. This case serves as a stark reminder that those who prey on the financial aid system will be held accountable, even if it takes years to untangle the web of lies they weave.

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