‘Pell Runner’ Scheme Discovered at California Community College
April 18, 2013
The Contra Costa Times reports that nearly two dozen people face charges for their involvement in a financial aid fraud ring at Contra Costa College.
The financial aid scam, in which students received money to attend the community college but never went to class, was uncovered after one student came forward, triggering investigations from entities including the FBI and Department of Education.
“I’m sure there are other people who are doing this that are getting away with it,” Contra Costa prosecutor Dodie Katague told The Contra Costa Times. “The scam is easy to commit: you just have to lie on your application that you are broke, get a check and after you get a check you withdraw from the classes. It’s very hard to catch because the record-keeping is lax.”
The scheme is not new, but it is believed to be the first in the county. Known as a “Pell runner” scam, the trick has funneled financial aid funds from college across the nation, costing taxpayers “untold millions,” according to the Contra Costa Times.
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The Contra Costa Times
Zeeshan Aleem
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