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3 college executives plead guilty to fraud charges

3 college executives plead guilty to fraud charges

On April 31, authorities announced that three college executives from New Jersey and New York pleaded guilty to fraud charges. The three executives worked at the Institute for Health Education and the Micropower Career Institute. Both of the schools are for-profit colleges. There have been no public statements about the fraud case offered by either of the two schools.

According to a statement from the Manhattan U.S. attorney, the three college executives collected millions of dollars in tuition from foreign students who were not actually attending their classes. Prosecutors say that some of these students were transferred to other schools after regulators began examining attendance rates. The executives were also accused of falsifying information about student financial aid and failing to return financial aid funds after students dropped out of the schools.

After pleading guilty to conspiracy to commit student financial aid fraud and student visa fraud, the three college executives were ordered to pay back $8.4 million. The three could also each face a maximum of 10 years behind bars. It is unclear if any of the students are being charged for involvement in the alleged student visa fraud.

When a business executive discovers that regulators are investigating their activities, the executive might want to seek help from an attorney. An attorney may be able to help the executive by fielding any communication with regulators or law enforcement agencies. If criminal fraud charges cannot be avoided, an attorney may be able to help build a solid defense strategy.

Source: Daily News, "Executives from three New York and New Jersey schools face up to 10 years in prison for fraud schemes: authorities," Stephen Rex Brown, May 1, 2015

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