A Fayetteville woman, Cynthia Denise Melvin, was sentenced to five years in prison for her involvement in a federal student aid fraud scheme. Melvin, 60, pled guilty to conspiracy to commit wire fraud and will also serve three years of supervised release. She is ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
Acting U.S. Attorney Daniel P. Bubar commented on the case: “This case represents one of the most significant federal student aid fraud schemes ever prosecuted in North Carolina.” He emphasized the ongoing efforts to investigate and prosecute those who exploit programs designed to assist students.
Andrew Balceniuk from the U.S. Department of Education Office of Inspector General (OIG) praised the collaborative work that led to Melvin's conviction: “I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another student aid fraud ring.”
Court documents reveal that between 2016 and 2023, Melvin orchestrated a scheme involving approximately 80 "straw students" at several community colleges in North Carolina, including Wake Technical Community College and Cape Fear Community College. The fraudulent activities resulted in over $4.7 million in financial aid awards with more than $3.5 million disbursed.
The Federal Student Aid office administers financial assistance programs for post-secondary education through grants and loans among other forms of support. Investigations found that Melvin used personal information from straw students to submit fraudulent applications via FSA’s website.
Evidence gathered during a federal search warrant at Melvin’s residence confirmed her involvement by revealing personal data and other materials related to the fraudulent scheme.
Daniel P. Bubar announced these developments following sentencing by Chief Judge Richard E. Myers II. Assistant U.S. Attorney Adam F. Hulbig prosecuted this case after an investigation by the U.S Department of Education's Office of Inspector General.
