42 crore student loan fraud; North Carolina grandmother gets 5 years in prison

 

 

 

PP Cherian

Fayetteville (North Carolina): 60-year-old Cynthia Denise Melvin has been sentenced to five years in prison in the largest student loan fraud case to shock the state of North Carolina. The case is that she used about 80 people as 'fake students' to defraud them of more than $ 5 million (about Rs 42 crore) between 2016 and 2023.

She used the personal information of students to apply for federal financial aid at various colleges including Wake Tech and Cape Fear Community College. In order to receive the money, they attended classes online and completed courses instead of the students. They took more than $ 3.5 million of the total $ 5 million allocated.

During a raid at Cynthia's house, investigators found documents including bank information and passwords of the students.

In addition to the 60-month prison sentence, the court also ordered the couple to repay the $3,641,473 (approximately more than Rs. 30 crore) they had stolen as a fine. The court strongly criticized them for engaging in such crimes at an age when they should be setting an example for their grandchildren. They pleaded guilty in February 2025.