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According to officials, PCC has not been targeted by members of a financial aid fraud ring broken up by federal investigators recently. Office of Scholarships and Financial Aid Assistant Dean Kim Miles said: “To my knowledge PCC has not been targeted. We are watchful of students who insist someone else speak for them about their financial aid.”

The U.S. Attorney’s Office and the U.S. Department of Education Office of Inspector General filed federal indictments in September on 21 individuals for allegedly conducting “fraud rings” that defrauded 15 California community colleges federal student aid programs of over $1 million.

According to the OIG the cases are the result of OIG’s criminal investigations aimed at shutting down fraud rings that seek to exploit federal student aid programs.

“Federal student aid exists so that individuals can make their dreams of higher education a reality, not for criminals to use as a personal slush fund,” said Inspector General Kathleen Tighe in announcing the indictments.

In an interview with the Courier on Friday, Assistant U.S. Attorney Jared Dolan said: “The fraud rings involved both traditional education and online education. Many of them [fraud rings] are now focused on the online part because it’s easier to defraud when you don’t have to show-up and lie to somebody.”

Dolan explained that fraud ringleaders would recruit “straw students”, people who were not students and did not intend to attend classes. Also the identity of actual students would be stolen and used in the scam.

“In some cases the identity of mentally disabled people were used because they are the most vulnerable in our society and enrolled in classes without their knowledge,” said Dolan. Straw students would stay enrolled in classes just long enough for the financial aid grant checks they illegally applied for would arrive and in some cases the checks would be mailed directly to the ringleader’s residence. Ringleaders would jump from college to college with this scam. At the same time these straw students would be taking up class slots that could have gone to genuine students.

The indictments allege that in one case two ringleaders obtained over $200,000 of financial aid grant funds by recruiting over 50 straw students.

The Identities of individuals who were incarcerated in state prison were also used according to the indictments.

The defendants are charged with a variety of felonies, including conspiracy, financial aid fraud, identity theft, mail fraud and wire fraud, said the U.S. attorney’s office. “It is important to send a message that fraud against student assistance programs will not be tolerated. Those who rip-off federal aid funds can expect to find themselves in a prison cell instead of a classroom,” said U.S. Attorney Benjamin Wagner.

Assistant Dean Miles had some suggestions for PCC students to try and protect themselves from identity theft. “Students should avoid suspicious scholarship searches, especially those that are later found to be for profit” she said “Avoid people that make an offer over the telephone and who charge a processing fee”

Miles said PCC students should watch-out for “spoofed emails” that direct them to a counterfeit website. “Be aware that there are consequences for participating in fraudulent activities,” Miles said. “Students should contact campus police if they are approached by anyone that wants them to take part in [any] suspicious activity” she said.

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