By Ann Rubin
St. Louis, MO (KSDK) - A South Carolina woman has pleaded guilty to federal fraud, admitting she used the identities of fellow prison inmates to apply for hundreds of thousands of dollars in financial aid at Webster University.
Michelle Owens says she helped enroll 23 students in Webster University's distance learning program, getting them more than $467,000 in financial aid. But it was all a scam, orchestrated from Owens cell in prison.
The so-called students were fellow inmates at the Leath Correctional Institution in South Carolina and Owens was pocketing the cash.
"They were people whose records she had obtained while she was in prison, working in the prison's education section," said U.S. Attorney Richard Callahan.
Owens used their real social security numbers to create fake educational backgrounds for them. But no one was actually taking classes.
"They had no idea that they were enrolled in post graduate work at Webster University," Callahan said.
And the money that should have been spent on books and housing, Owens spent on herself once she was paroled, about $125,000 in all.
It was a Webster University employee who first noticed something wasn't right. She contacted her supervisor, and eventually federal authorities. They soon realized the student loan program and the university itself were victims to fraud.
Webster released a statement saying, "The University reviewed its policies and promptly instituted measures to ensure this does not happen again."
Students hope it won't.
"I think it's really unfair and almost unbelievable that she was able to get away with something like that considering how much I feel like we as students have to go through to get financial aid," said student Megan Washausen.
Another student, Admira Alic, said, "I know that there's people that want to go to school that can't so it's sad and makes me a little angry because it doesn't make any sense."
And Alexy Irving adds, "I think it's kind of messed up that she made it a little bit harder on the rest of us to actually get the financial aid."
Student financial aid fraud carries a maximum penalty of five years in prison and $20,000 in fines. Mail fraud carries a maximum penalty of 20 years in prison and $250,000 in fines. Sentencing for Owens will take place in South Carolina.
KSDK