Jump to Navigation

3 charged with mail and wire fraud in alleged student loan scam

Around a decade ago, an Ohio couple opened Carnegie Career College that purported to be a private school offering certain associates degrees and certificates. Financial aid was also available in the form of student loans. The alleged theft of over $2 million in student aid led to mail and wire fraud charges against the college's co-founders and one other person.

Authorities in Ohio claim the fraud began in 2007 and ran through 2012. Supposedly, the couple and a third person obtained fake high school diplomas for students that dropped out of high school. The used the fake diplomas to obtain student loans, which they then converted for personal use.

Investigators claim to have proof that the money was spent on anything from a vacation to the repayment of a personal line of credit and many things in between. Additional charges related to these alleged fraudulent activities were filed as well. Some of the students at the school were supposed to be obtaining their high school diplomas while completing one of the school's degree or certificate programs. These students were supposedly told they received a scholarship. Authorities believe the couple was padding the enrollment numbers to have access to more funds.

If convicted of all charges against them, including wire fraud, these three people could face years of prison time. People accused of crimes are given the benefit of a presumption of innocence. Therefore, prosecutors bear the burden of proving the elements of the crime and that the persons charged actually committed it. A thorough review of the evidence obtained by authorities may help in preparing a defense against the charges.

Source: wkyc.com, Canton couple indicted for $2.3M fraud, No author, Dec. 13, 2013

No Comments

Leave a comment
Comment Information

Contact Our Firm Today

Lakeside Place
323 Lakeside Ave. West
Suite 450
Cleveland, OH 44113

Phone: 216-592-8719
Toll free: 800-845-4710
Fax: 216-781-6242
Map and Directions

Fair Fees. Credit Cards Accepted.

Visa MasterCard American Express Discover Network
Review Us
The Goldberg Law Firm

Over 24 Years Experience Representing Persons in Ohio and Nationwide

The Goldberg Law Firm serves the Cleveland, Ohio, metro area and Northeast Ohio, including Cleveland, Parma, Akron, Lorain, Elyria, Euclid, Lakewood, Cleveland Heights, Cuyahoga Falls, Mentor, Strongsville, Berea, Broadview Heights, Brook Park, East Cleveland, Garfield Heights, Maple Heights, North Olmsted, North Royalton, Rocky River, Shaker Heights, Solon, Westlake, Painesville, Medina, Cuyahoga County, Summit County, Lorain County, Lake County and Medina County.

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.