NYC Financial Aid Fraud Lawyers

Federal and state laws are in place that prevent individuals from making false claims, false promises, or inaccurately represents himself or herself for financial gain. One type of this fraudulent behavior is known as financial aid fraud. If an individual is accused of this charge, he or she faces criminal prosecution from United States attorneys at a federal level. In addition, those charged with financial aid fraud will also have to deal with New York prosecutors.

What is financial aid fraud? Financial aid fraud may take place in many forms. This could include making false promises to receive funds under the Title VI Federal Student Assistance Program, or it could include mailing false statements to receive funds from agencies such as the Federal Emergency Management Agency (FEMA).

If an individual is charged with a financial aid offense, he or she should seek legal help. An experienced attorney can provide assistance and advice on how the defendant should respond to questions.

What are the Types of Financial Aid Fraud?
There are many different types of financial aid fraud that include:

FAFSA scams that involve individuals who apply to higher educational institution as students with fake high school diplomas or GED certificates. When an individual receives financial aid, the funds will be sent to the school that the student is enrolled in, and when there are remaining funds after tuition has been paid to the school, it will be sent to the student. In most cases, the student will drop out of school within a few months after receiving the financial aid award. In addition, when an individual intentionally misrepresents their income on the Free Applications for Federal Student Aid (FAFSA), it is financial aid fraud.

An individual who manipulates test scores on any assessments and exams on Free Application for Federal Student Aid (FAFSA).

Those who apply for financial aid by using another individual’s identity.

Those who are applying for disaster relief benefits from FEMA and use another individual’s identity.

It is important to note that these offenses (and other types of financial aid fraud) that involve federal funds could result in a federal charges for making false, fraudulent of untrue statements to a United States government agency as stated in 18 United States Code Section 287, which could lead to the following:

Conspiracy to defraud the United States according to 18 United States Code Section 371. If an individual is convicted of this sentence, then or she could face a five year prison sentence for attempting to commit fraud against the United States government (even if these attempts are unsuccessful).

Making false, fraudulent, or misleading statements as stated in 18 United States Code Section 1001. Those who are charged with this criminal offense will face a maximum prison sentence of five years for making false or fraudulent claims within the United States executive, judicial, or legislative branches.

If an individual is found guilty of mail fraud, he or she could face a 20 year prison sentence for using the United States Postal Service to carry out the scheme as stated in 18 Code Section 1341.

When an individual is convicted of wire fraud, he or she could face up to 20 years in prison for using money wiring services, such as Money Gram and Western Union, to commit fraud.

According to 18 United States Code Section 1028, an individual who obtained financial aid benefits by using an identity theft or misrepresentation of identity could face up to 15 years in prison.

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In addition, submitting a FAFSA application with the intentional purpose of providing inaccurate information may be considered sufficient evidence to charge an individual with financial aid fraud. The consequences will vary based on certain factors, such as if an individual committed fraud electronically or through the mail.

Legal Scenario: What Would You Do?

Scenario

You applied for federal financial aid for your child's college tuition and listed a lower household income on the FAFSA application than what you actually earned, resulting in a significantly larger Pell Grant award. Now you've received a letter from the Department of Education's Office of Inspector General stating they are investigating discrepancies in your financial aid application.

Can I really face federal criminal charges just for misrepresenting my income on a financial aid application?

Attorney's Answer

Yes, financial aid fraud is taken very seriously at the federal level. Knowingly providing false information on a FAFSA application can result in charges under 20 U.S.C. § 1097(a), which carries penalties of up to five years in federal prison and fines up to $20,000. Prosecutors may also pursue additional charges under 18 U.S.C. § 1341 for mail fraud or 18 U.S.C. § 1343 for wire fraud if electronic submissions were involved, each carrying up to 20 years of imprisonment. An experienced financial aid fraud defense attorney can evaluate whether the government can prove you had the intent to defraud, which is an essential element the prosecution must establish beyond a reasonable doubt.

This is general information only. Contact us for advice specific to your situation.

What are the Consequence if an Individual is Charged with Financial Aid Fraud?
If an individual is charged with financial aid fraud, they may also face New York charges on financial aid fraud that includes:
Schemes to defraud according to Code Sections 190.60 and 65;
criminal impersonation as stated in Code Section 190.25 and 26;
Identity theft as stated in Code Sections 190.77 through 83.

An individual can be charged with these crimes if he or she filed a false FEMA application after a disaster, and charges will also apply for any other type of financial aid fraud that used another individuals identity.

Why You Need a Financial Aid Attorney
Financial aid fraud has significant penalties. The best way that an individual can ensure his or her rights are protected and understand the best course of action is to consult with a skilled, experienced criminal defense attorney. An attorney with financial aid fraud experience can help increase the chances of a successful outcome.