A Fayetteville woman, Cynthia Denise Melvin, has been sentenced to five years in prison followed by three years of supervised release for her involvement in a federal student aid fraud scheme. Melvin, aged 60, pled guilty to conspiracy to commit wire fraud and was ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
Acting U.S. Attorney Daniel P. Bubar described the case as “one of the most significant federal student aid fraud schemes ever prosecuted in North Carolina.” He emphasized the commitment to investigate and prosecute those who exploit programs designed to assist students.
Andrew Balceniuk, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office, praised the efforts of OIG special agents and law enforcement colleagues for dismantling another student aid fraud ring and holding Melvin accountable. He stated that their office is dedicated to stopping such fraudulent activities.
Court documents revealed that between 2016 and 2023, Melvin orchestrated a scheme involving approximately 80 “straw students” at various community colleges in North Carolina. The targeted institutions included Wake Technical Community College, Cape Fear Community College, and Fayetteville Technical Community College. The scheme led to over $4.7 million in financial aid awards being granted under false pretenses.
Federal Student Aid (FSA), part of the U.S. Department of Education, administers financial aid programs for post-secondary education through grants, loans, work-study funds, and other disbursements. The investigation found that Melvin used personal identifying information from straw students to submit fraudulent applications via FSA’s website while concealing her identity as the preparer.
Evidence collected during a federal search warrant execution at Melvin’s residence confirmed details about the operation’s mechanics including personal information and coursework related to straw students as well as FSA account credentials.
The announcement was made by Daniel P. Bubar following sentencing by Chief Judge Richard E. Myers II. The case was investigated by the U.S. Department of Education’s Office of Inspector General with Assistant U.S. Attorney Adam F. Hulbig prosecuting.
