OIG: Office of Inspector General
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Investigation Report

Department of Justice

United States Attorney's Office
Northern District of Iowa

Contact: Peter Deegan

December 22, 2011

Waterloo Man Pleads Guilty To Financial Aid Fraud

A man who defraued the U.S. Department of Education out of at least $62,000 pled guilty on December 21, 2011, in federal court in Cedar Rapids.

Roy Lee Turner, III, age 31, from Waterloo, Iowa, was convicted of one count of financial aid fraud.

In a plea agreement, Turner admitted that, between about January 2006 and July 2007, he participated in a scheme to fraudulently obtain federal student loan funds. As part of the scheme, Turner and others registered for classes at Kirkwood Community College in Cedar Rapids, Iowa, and applied for federal financial aid to pay for the classes and other educational expenses. Turner and others applied for the federal student aid intending to use the funds for non-educational purposes. Financial aid funds that were not used by Kirkwood for tuition and fees were forwarded to Turner and others in the form of checks. Turner and others used the proceeds from the checks for their own, non-educational, purposes. Over the course of the scheme, Turner and others fraudulently caused the U.S. Department of Education to issue at least $62,000 in student aid principal.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Turner remains free on bond previously set pending sentencing. Turner faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the United States Department of Education.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 11-152 LRR.

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Last Modified: 01/12/2012