1. How are you fraud proofing?
Michelle Greco, Delgado Community College
Vickie Temple, Bossier Parish Community College

2. OFFICE OF INSPECTOR GENERAL
The Office of Inspector General (OIG) is an independent component of the Department. They examine allegations of fraud, waste, and abuse, and pursue those who seek to enrich themselves by abusing Department programs at the expense of our nation’s taxpayers
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

3. SCHOOL RESPONSIBILITY
Schools and their third party servicers must refer to the OIG “any credible information” indicating that a student, school employee, third party servicer, or other agent of the school “may have engaged” in fraud, criminal or other illegal conduct, misrepresentation, conversion, or breach of fiduciary duty involving Title IV.
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

4. Cases WHY ARE YOU IMPORTANT TO OIG? You play a critical role
in helping OIG
achieve our mission.
You serve as OIG’s
“eyes and ears” and help
us detect and prevent fraud.
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

5. WHY ARE YOU A TARGET FOR FRAUD?
You are a financial institution that handles millions of dollars every year.
Your “customers” do not typically consider the fraud threat.
Your infrastructure may not be configured for fraud detection, prevention, and deterrence.
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

6. TYPES OF POTENTIAL FRAUDULENT ACTIVITIES
FAFSA Fraud
Falsification of Documents
Identity Theft
Distance Education Schemes
Fraud/theft by School Employee
Ghost Students
Financial Statement Falsification
Obstruction of a Federal Audit or Program Review
90/10 Rule Manipulation
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

7. TYPES OF POTENTIAL CYBER CRIME ACTIVITY
Compromise of system privileges
Compromise of information protected by law (FERPA, GLBA, etc..)
Unauthorized or exceeding authorized access of IT systems or protected data
Indicators of possible criminal activity:
Insiders 
Requesting access to systems to which they do not require access
Using removable media in systems where data should not be removed
Accessing systems outside normal work hours
Bragging about having access to sensitive data
Outsiders 
Excessive complaints about identity theft
Unexplained mail delivery rules in mailboxes
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

8. HACKER
Allegation: A private investigator fraudulently used President Donald J. Trump’s personal identifying information, including his social security number, in an attempt to illegally obtain his federal tax information from the Internal Revenue Service.
Investigation: Jointly investigated by ED OIG, Treasury IG for Tax Administration, and FBI. Investigation revealed that the individual created a FAFSA account for the President and attempted to obtain the President’s tax information through the Data Retrieval Tool.
Outcome: the individual pled guilty to false representation of a Social Security Number. Sentenced to 18 months in jail and $14,000 restitution.
Cases

9. DISTANCE EDUCATION FRAUD SCHEME
Allegation: Between May 2010 and September 2016, individuals operated a student aid fraud ring in the Greenwood, Mississippi area, enrolled hundreds of individuals in various postsecondary distance education programs across the country and submitted FAFSAs to the U.S. Department of Education to obtain. The estimated loss to ED was over $2.5 million in Title IV funds.
Investigation: With the assistance of a relative, the individual effectively operated a massive student aid fraud ring in the Greenwood, Mississippi area by enrolling hundreds of individuals into various post-secondary distance education programs across the country and submitted FAFSAs to the U.S. Department of education to obtain Title IV funds in their names.
Outcome: On May 18, 2018, the assisting relative was sentenced to 3 years of probation for Misprision of a Felony. The individual was sentenced to 18 (1 year and 6 months) months imprisonment, 3 years of probation, and ordered to pay $249,000 in restitution to the United States Department of Education for Conspiracy to commit wire fraud.
Cases

10. FRAUD BY FORMER PURCHASING DIRECTOR
Allegation: Pontifical Catholic University of Puerto Rico (PCUPR) referred allegations that an employee misused federal funds after reviewing a forensic accounting report by an external CPA firm.
Investigation: The former director used the school’s credit card for unauthorized personal expenses, including household utility bills, school tuition, and vacations. To conceal her crime, she altered and created fictitious credit card statements where she hid her personal charges by increasing the amounts of other legitimate charges to the card, or by deleting the charges altogether before submitting the statements to the school’s finance department for payment.
Outcome: The former director was sentenced to serve 1 year in prison and 3 years supervised release and was ordered to pay more than $155,400 in restitution
Cases

11. Cases WHY REPORT FRAUD TO OIG?
Meet statutory and regulatory requirements
Comply with ethical responsibility
Deter others from committing fraud and abuse
Protect the integrity of the Title IV Programs
Avoid being part of a fraud scheme
Prevent administrative action
Avoid civil penalties
Prevent criminal prosecution
Cases

12. You can reach the Hotline on the web at:
REPORT FRAUD
You can reach the Hotline on the web at:
OIGhotline.ed.gov
For questions, call
1-800-MIS-USED
Cases

13. Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of Bribes
Laplace Woman Charged with Stealing Federal Student Aid Funds and Identity Theft
Shreveport Man Pleads Guilty To Financial Aid Fraud Scheme At Bossier Parish Community College
Cases

19. Thank you
Vicki Temple
Michelle Greco