Mastermind Orchestrated Elaborate Scheme Defrauding Federal Student Aid Program
Cynthia Denise Melvin, 60, of Fayetteville, was sentenced Tuesday to five years in prison followed by three years of supervised release for her role in a massive conspiracy to commit wire fraud involving the theft of millions from the federal student aid program. She was also ordered to pay $3,641,473 in restitution to the U.S. Department of Education.
Melvin pleaded guilty to the charge on February 26, 2025. According to court documents, between 2016 and 2023, Melvin organized and led a scheme involving approximately 80 “straw students” to fraudulently obtain federal student aid from multiple North Carolina community colleges, including Wake Technical Community College, Cape Fear Community College, and Fayetteville Technical Community College.
Investigators estimate the scheme resulted in over $4.7 million in financial aid awards, with more than $3.5 million disbursed. Acting U.S. Attorney Daniel P. Bubar called it “one of the most significant federal student aid fraud schemes ever prosecuted in North Carolina.”…