OIG: Office of Inspector General
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Investigative Reports

Ohio January, 2003

United States Attorney
Northern District of Ohio

Emily M. Sweeney
United States Attorney

James G. Lynch
Assistant United States Attorney
(216) 622-3546

Student Loan Fraud Indictment Announced

Emily M. Sweeney, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury in Cleveland returned a two-count Indictment against Willie J. Reed, charging him with fraud on the Department of Education and use of a false Social Security number.

Reed, age 27, formerly resided at 27100 Tungsten Avenue, Euclid, Ohio.

The indictment alleges that beginning in 1996 through 1997, Reed applied for and received federal student aid loans, insured loans, and grants to assist him as a student at Kent State University. Sometime late in 1997, Reed left Kent State University and defaulted on the loans he had received, thereby making him ineligible to receive any further federal student aid.

The indictment further alleges that Reed enrolled at Cleveland State University in August, 1999, and applied for student aid using false information to disguise his identity, and obtained by fraud, funds and assets provided and insured by the Department of Education and National City Bank totaling $9,750.00. Reed is alleged to have received refund checks from Cleveland State University, including one in the amount of $3,775.64, on January 21, 2000. He is charged with using a false Social Security number on October 25, 1999 when he applied for a federally insured student loan.

The charges are in violation of Title 20, Section 1097(a), student loan fraud (count 1), and Title 42, Section 408(a)(7)(B), use of a false Social Security number (Count 2). Each violation carries a maximum penalty of 5 years imprisonment and/or a fine of $250,000.

The case was presented to the grand jury by Assistant U. S. Attorney James C. Lynch following an investigation by agents of the U. S. Department of Education, Office of Inspector General, Chicago, Illinois.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair Trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

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