Reina Isom: 30 Months for $930K Student Aid Scam

INDIANAPOLIS – Reina Isom, 47, of Gainesville, Florida, is headed to federal prison after being sentenced to 30 months for a decade-long scheme to fleece the Department of Education out of over $930,000 in federal financial aid. The sentence, handed down by U.S. District Judge Jane Magnus-Stinson, includes two years of supervised release and an order to pay $348,148 in restitution. Isom pleaded guilty to wire fraud and two counts of Federal financial aid fraud.

For nearly ten years, Isom, formerly of Muncie, Indiana, built an elaborate fraud operation, enrolling accomplices in online colleges using stolen personal information – dates of birth, social security numbers, the works. She then filed fraudulent Free Application for Federal Student Aid (FAFSA) forms, deliberately omitting income details to inflate the amount of aid awarded. The goal was simple: get more money, and funnel it directly into her own pockets.

But Isom didn’t just submit forms. She actively worked to keep the scam afloat. She ensured these phantom students remained enrolled by completing coursework – not through legitimate effort, but by repeatedly submitting assignments copied from previous terms, merely swapping out the student’s name. It was a lazy, brazen attempt to game the system, and it worked for a long time, resulting in over 50 fraudulent FAFSA applications for more than a dozen individuals.

The money flowed in, with over $340,000 landing directly in Isom’s personal bank accounts or loaded onto debit cards under her control. This wasn’t Isom’s first rodeo with the law. Court records reveal a history of fraudulent activity, including a 2004 conviction for arson with intent to defraud – she paid someone to burn down a recently insured property – and a 2011 guilty plea for a similar student aid scam involving the University of Phoenix and stolen identities.

“Federal financial aid programs play a critical role in opening the doors to higher education for individuals who might not otherwise have the opportunity,” stated Tom Wheeler, United States Attorney for the Southern District of Indiana. “When someone abuses these programs, they don’t just break the law—they potentially steal a life-changing opportunity from a first-generation student or someone from an underserved community. We will not hesitate to pursue and prosecute those who shamelessly exploit public resources for personal profit.”

Scott Wingle, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Central Regional Office, added, “The Office of Inspector General is committed to stopping student aid fraud rings, and we will continue to aggressively pursue anyone who participates in them.” The investigation was conducted by the Department of Education-Office of Inspector General, and prosecuted by Assistant U.S. Attorneys Adam Eakman and Meredith Wood.