Stephanie Brown, 53, of Bronx, New York, has been accused of engaging in a massive scheme to obtain federal financial aid for prospective students of a State of New York online college.
According to court documents, in 2011, Brown forged documents, made false statements, and submitted false and fraudulent documents to the United States Department of Education in order to obtain federal financial aid. As a result of Brown’s fraud, the Department of Education provided federal financial aid to individuals who otherwise would not have qualified for such aid.
The investigation, praised by U.S. Attorney Preet Bharara, was led by the Department of Education’s Office of the Inspector General. Brown’s plea agreement with the Government includes restitution in the amount of $117,840.
Brown faces a maximum of one year in prison, one year of supervised release, and a $25 special assessment. The case is being prosecuted by the Office’s Public Corruption Unit, with Assistant United States Attorney Carrie H. Cohen in charge of the prosecution.
The sentencing is set for October 8, 2014, at 10:00 a.m. in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV.
The case is a stark reminder of the importance of protecting the integrity of the federal financial aid system. As the investigation revealed, Brown’s actions resulted in the waste of taxpayer dollars and undermined the trust of the American people in the system.
Bharara praised the investigative work of the Department of Education’s Office of the Inspector General, saying that their work will help to ensure that those who seek to defraud the system will be held accountable.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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