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Indictment for Wire Fraud in Student Aid Scheme

June 14, 2021
 
 

Randolph Stanley of Maryland was indicted by federal authorities on charges of conspiracy to commit wire fraud, in connection with a scheme to fraudulently obtain student aid. Since 2008, he has been employed by the Defense Contract Audit Agency, but previously he worked for both nonprofit and for-profit universities.

A Justice Department statement said, "The affidavit alleges that between 2005 and 2021, Stanley has fraudulently obtained federal student aid on behalf of student participants, who enrolled in at least eight universities. Student participants in the Stanley ring allegedly received federal student aid but were not legitimate students as they lacked the intent to earn a degree … The affidavit alleges that student participants, including Stanley, were awarded tuition, which went directly to the schools. Between 2005 and 2021, at least 65 student participants -- including Stanley -- were allegedly awarded at least $6.7 million in federal student aid.... Stanley, as the ringleader of the scheme, would allegedly pocket all or some of the student refunds, occasionally sharing refund money with other student participants."

Stanley could not be reached for comment.

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