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Criminal sentence

Five-year sentence in a North Carolina student aid scheme

The court ordered $3,641,473 in restitution to the Department of Education. Education OIG estimated a larger award figure, which the release also states.

Not legal advice. Program rules are set by the government sources linked on this page.

On June 25, 2025, the U.S. Attorney’s Office for the Eastern District of North Carolina said Cynthia Denise Melvin, 60, was sentenced to five years in prison and three years of supervised release. She pleaded guilty on February 26, 2025, to conspiracy to commit wire fraud. The court ordered $3,641,473 in restitution to the Department of Education. 1

The release says that from about 2016 to 2023 she led a scheme with about 80 straw students at three North Carolina community colleges, submitted fraudulent admissions and FAFSA forms, and impersonated students in school communications. Education OIG estimated more than $4.7 million awarded and more than $3.5 million disbursed. The release does not reconcile those estimates with the restitution figure. 1

Sources

  1. Fayetteville Woman Sentenced to Prison in a $3.5 Million Federal Student Aid Scheme, June 25, 2025 U.S. Department of Justice

Programs

U.S. Department of Justice, National Fraud Enforcement Division

DOJ fraud tip reward

An early-stage Justice Department reward of $10,000 to $30,000 for specified fraud tips, paid only in the Department’s discretion after criminal charges are unsealed.

U.S. Department of Justice, Civil Division

False Claims Act

A civil statute that lets a private person sue in the government’s name over false claims for federal money, and share in a recovery if the suit succeeds.

Guides

Guide

Federal student aid fraud

A North Carolina case describes stolen or borrowed identities, fake enrollment, and FAFSA forms used to draw federal student aid.