ROANOKE, Va. (CBS19 NEWS) — A Danville woman has pleaded guilty to student loan fraud charges.
According to a statement, Karen Warren, 43, waived her right to be charged and pleaded guilty this week.
His plea includes one count of student loan fraud and one count of unlawful transfer or possession of identification affecting interstate commerce.
Warren was accused of using other people’s personally identifiable information to submit and receive fraudulent student loans over $260,000.
Court documents show that she hatched a scheme to defraud the US Department of Education, the US public university system and Capella University between 2013 and 2018,
During this time, she prepared and submitted bogus Free Application for Federal Student Aid, or FAFSA, forms.
Warren admitted to recruiting others, who would provide her with their personal identifying information which she would then use to prepare and submit applications to DOE, APUS and Capella.
The statement said that once Warren secured the financial aid, she would enroll the people whose names were used to submit the fake FAFSAs into online educational programs.
Most of the people registered in this way did not participate or withdrew from the courses.
Warren would then convert the financial aid money and use it for personal purchases, in violation of the education-related expense requirement set by the DOE.
In all, it caused a loss of at least $264,000.
Warren now faces up to 15 years in prison.