Friends and Family

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It’s important to maintain good relationships with friends and family. They are a great support system during both good times and bad. A man from Danville, Virginia used his friends and family to support his student loan fraud scheme which stole more than a million dollars from eight higher education institutions. (Once his victims found out that they were pawns in his fraudulent scheme, no doubt they were very supportive of a just punishment.)

The 31-year-old Danville man created approximately 60 fraudulent student profiles using the websites for the Department of Education and the eight universities he victimized. Then, he enrolled his friends and family members in online courses to qualify for federal student loans in their names.

None of the people he enrolled ever completed any of the courses they were enrolled in. That didn’t matter because the federal student loans were already disbursed. (The victims were either given a failing grade or were withdrawn from the class.) The young man arranged to receive these fraudulent loans, which were probably spent on himself. (That’s just what fraudsters do.)

When the Danville man’s circle of family and friends had been thoroughly exhausted, he expanded his scheme to include others. He pretended to be a higher education employee and encouraged low-income residents to hand over their personal information so he could secure free government money and other benefits for them. (How many times have I said it? If it sounds too good to be true, it probably is.)

After pleading guilty to student loan fraud and aggravated identity theft, the young man from Danville, Virginia was sentenced to nine years and three months in federal prison. He must also pay back more than $1.1 million to the Department of Education and the eight universities he tried to scam. (It’s a given that this fraudster won’t have many visits from his previously supportive circle of friends and family while serving time behind bars.)

Today’s “Fraud of the Day” is based on an article, “Man sentenced to prison for student loan fraud,” posted on on March 7, 2019.  

DANVILLE, Va. (CBS19 NEWS) — A man from Danville has been sentenced to prison for fraudulently enrolling people in online universities for his own personal financial gain.

Thirty-year-old Tyrone Dwayne Young was sentenced to nine years and three months in federal prison for student loan fraud, wire fraud and identity theft.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.