A Fayetteville woman, Cynthia Denise Melvin, 60, has been sentenced to five years in federal prison for orchestrating a wire fraud scheme that stole more than $5 million from federal student aid programs at community colleges across North Carolina. Melvin pleaded guilty on February 26, 2025. In addition to her prison sentence, she has been ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
Andrew Balceniuk, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office, stated: “I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another student aid fraud ring and holding Ms. Melvin accountable for her criminal actions. The Office of Inspector General is committed to stopping student aid fraud rings, and we will continue to aggressively pursue anyone who participates in them.”
Court documents reveal that between 2016 and 2023, Melvin led a group involving around 80 “straw students” who submitted fraudulent applications for federal student aid at various community colleges such as Wake Tech, Cape Fear Community College, and Fayetteville Tech. Investigators estimate that this operation resulted in over $5 million in financial aid awards with more than $3.5 million actually disbursed. Authorities describe this as the largest student aid fraud case prosecuted in North Carolina.
The investigation found that Melvin collected personal information from straw students and used it to submit false applications at targeted schools. She also impersonated these individuals by faking attendance records and coursework submissions while concealing her own identity during the application process.
During a search at Melvin’s home, investigators recovered evidence detailing how the scheme was carried out—including personal data for straw students, FSA account credentials, and banking information.
The case was announced by the United States Attorney for the Eastern District of North Carolina following sentencing by Chief Judge Richard E. Myers II. The U.S. Department of Education’s Office of Inspector General conducted the investigation, with Assistant U.S. Attorney Adam F. Hulbig prosecuting.
