A Danville woman faces up to 15 years in prison after pleading guilty to federal student loan fraud.
Karren Warren, 43, waived her right to be indicted and pleaded guilty Friday to one count of student loan fraud and one count of unlawful transfer or possession of identification affecting interstate commerce.
According to court documents, between 2013 and 2018, Warren devised a scheme to defraud the United States Department of Education, the American Public University System and Capella University by preparing and submitting false FAFSA forms.
Warren admitted to recruiting others to provide her with their personal identifying information, which she then used to prepare and submit fraudulent enrollment applications to USDOE, APUS and Capella.
Once the financial aid was obtained, Warren enrolled the individuals, whose names had been submitted using the false FAFSAs, in online educational institutions. Most individuals enrolled in this manner either did not participate or withdrew from the courses.
Warren then converted the federal financial aid funds for her personal use, thus failing to use the funds solely for education-related expenses as required by USDOE.
In all, Warren caused a loss of at least $264,000 to APUS, Capella and the USDOE.
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Chris Graham
