Fayetteville Woman Pleads Guilty to $5 Million Student Aid Fraud Scheme

Cynthia Denise Melvin, a 59-year-old woman from Fayetteville, North Carolina, pleaded guilty to conspiracy to commit wire fraud in a scheme that defrauded the U.S. Department of Education of over $5 million in student aid from 2016 to 2023. Melvin orchestrated the operation by recruiting more than 70 'straw students' to apply for financial aid at multiple community colleges, using their personal information to submit fraudulent applications. She falsely represented that these students were attending classes and completing coursework, thus obtaining federal loans and grants intended for legitimate students. Facing a potential sentence of 20 years in prison, a $250,000 fine, and mandatory restitution, Melvin's case is noted as one of the largest 'straw student' scams in recent years. The investigation revealed that she utilized the stolen identities to submit FAFSA forms and conceal her involvement in the fraudulent activities. The U.S. Department of Education's Federal Student Aid program is responsible for overseeing financial assistance to eligible students, which Melvin exploited for personal gain.