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Albany, NY – A Texas woman admitted to orchestrating a decade-long financial aid fraud scheme, stealing identities to fraudulently obtain over $466,000 in education benefits, federal prosecutors announced today.
Shelbra Long, 58, of Edinburg, Texas, pleaded guilty to conspiring to commit mail and wire fraud, defrauding the U.S. Department of Education through fake student enrollments at online colleges.
How the Scheme Worked
🔹 Stole identities to apply for admission and financial aid at online schools
🔹 Once aid was disbursed, quickly withdrew the fake students
🔹 Schools then refunded unused aid to bank accounts controlled by Long and her co-conspirators
🔹 The scam resulted in $466,430 in fraudulent aid awards, with $211,820 actually disbursed
Facing Up to 20 Years in Prison
Long now faces up to 20 years in federal prison, a $250,000 fine, and up to 3 years of supervised release when she is sentenced on June 26, 2025. She has also agreed to:
✔️ Repay $211,820 in restitution
✔️ Forfeit an additional $52,304
The U.S. Department of Education Office of Inspector General (ED OIG) led the investigation, and Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
Sources: https://www.justice.gov/usao-ndny/pr/texas-woman-pleads-guilty-student-loan-fraud-conspiracy
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