A Texas woman admitted to orchestrating a decade-long fraud scheme that led to the disbursement of more than $466,000 in federal education aid, prosecutors announced Wednesday.
Shelbra Long, 58, of Edinburg, pleaded guilty in federal court in Albany to conspiracy to commit mail fraud and wire fraud. The scheme involved using stolen identities to apply for financial aid at online colleges, then withdrawing students and pocketing refunded aid money.
According to prosecutors, Long and her co-conspirators applied for admission and financial assistance under the names of stolen identities. Once the Department of Education disbursed the funds to the schools, the group withdrew the purported students, causing the schools to refund the unused aid into bank accounts they controlled. The Department of Education ultimately awarded $466,430 in aid, disbursing $211,820 before the scheme was uncovered.
Long now faces up to 20 years in prison, a $250,000 fine, and up to three years of supervised release. She has agreed to pay $211,820 in restitution and forfeit an additional $52,304. Her sentencing is scheduled for June 26.
The case was investigated by the U.S. Department of Education’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Jonathan S. Reiner.
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