A Fayetteville woman has been sentenced to five years in prison for her involvement in a federal student aid fraud scheme. Cynthia Denise Melvin, 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. Her sentence includes three years of supervised release following her prison term.
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 continue investigating and prosecuting those who attempt to 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.
Court documents revealed that between 2016 and 2023, Melvin orchestrated a scheme involving approximately 80 “straw students” at multiple community colleges in North Carolina. These included Wake Technical Community College, Cape Fear Community College, and Fayetteville Technical Community College. The fraudulent activities resulted in over $4.7 million in financial aid awards, with more than $3.5 million disbursed.
Federal Student Aid (FSA), part of the U.S. Department of Education, manages financial aid programs including grants and loans for post-secondary education. FSA also processes FAFSA applications used by schools to determine financial awards for students.
The investigation found that Melvin collected personal identifying information from straw students and submitted fraudulent admission applications at targeted schools. She impersonated these students by appearing as if they were attending classes and completing coursework while submitting FAFSA forms through FSA’s website without revealing her identity as the preparer.
During a search warrant execution at Melvin’s residence, investigators recovered evidence such as personal identifying information and coursework for straw students along with FSA account details.
Daniel P. Bubar announced the sentencing after it was handed down by Chief Judge Richard E. Myers II. The case was investigated by the U.S. Department of Education’s Office of Inspector General and prosecuted by Assistant U.S. Attorney Adam F. Hulbig.
