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Subject: -- Fraud of The College Scholarsip Fraud Prevention Act
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NASFAA and NACAC members account for bulk of all financial-aid fraud in America
The National Association of Student Financial Aid Administrators (a/k/a/ NASFAA), and an alphabet-related group called National Association for College Admission Counseling (a/k/a/ NACAC) boast what is believed to be the largest collective membership of financial-aid counselors, financial-aid admissions' counselors, universities, colleges, student-loan providers, student-loan underwriters, and student-loan originaters in the financial-aid industry. In a nutshell, NASFAA is a non-profit association of institutions, colleges, universities, and individuals, agencies, and students who, according to literature produced by NASFAA, are "interested in promoting the effective administration of student financial aid." Virtually every college and university, and post-secondary institution, in the United States of America is a member of or some how associated with NASFAA. With respect to legislative action, the organization represents the interests of financial-aid administrators during the legislative process, and reports to the membership on actions taken by Congress, and the organization has maintained a contract to perform services for the U.S. Dept. of Education.
A substantial amount of revenue for NASFAA is generated by annual fees paid by its members, advertisements and sponsorship fees paid by affluent members such as Sallie Mae, Nellie Mae, and various companies involved in student loans, and financial-aid. See section entitled NASFAA Money-Trail.
NACAC is an alphabet-related organization that fosters cooperation with NASFAA on many endeavors. The National Association for College Admission Counseling works primarily with counseling and enrollment professionals at the high-school level. The group claims to help all students realize their full educational potential, with particular emphasis on the transition to postsecondary education.
Despite facts, and what some may believe suggestions to the contrary, NACAC claims "it is committed to promoting high professional standards that foster ethical and social responsibility." According to literature provided by the organization, NACAC was founded in 1937. It is an organization of more than 10,000 professionals, many of which are high-school guidance counselors who work with college-level financial-aid professionals.
Both NACAC and NASFAA sport impressive and "official-looking" websites. Prior to his being discovered as a traitorous spy, it should be noted that Robert Phillip Hanssen also sported impressive credentials, and was known to even attend the same church as FBI director Louis Freeh.
Both NASFAA and NACAC have links to an assortment of sponsorships, advertisements, a Board of Directors, and state and regional offices. For good or bad, the polices, decisions, and conduct of both NASFAA and NASFAA influence thousands if not millions of students and financial-aid professionals across America.
Indeed, public documentation produced annually by the U.S. Department of Justice, the Federal Trade Commission, and the U.S. Dept. of Education show that the most common types of financial-aid fraud are committed by persons in-the-know: the guidance counselors; parents; university financial-aid officers; admissions' counselors; and, employees of companies/agencies that have relationships with colleges and universities.
Persons in-the-know are the primary members of NASFAA and NACAC. These persons are capable of best falsifying transcripts, forging or encouraging fraudulent letters of recommendation, falsifying FAFSA documents, undereporting of parental income, and steering students to fraudulent loan providers, censoring and steering students away from low cost application-fee merit-based scholarship sponsors and towards high cost crooked loan providers that are members of NASFAA/NACAC, and commingling marketing affairs with corrupt financial-aid officers and executives of student-loan companies.
Financial-aid fraud schemes by NASFAA/NACAC Member colleagues
Consider these facts involving persons in-the-know:
Example #1: (MIT Dean of Admissions Marilee Jones)
Massachusetts Institute of Technology dean of admissions Marilee Jones has been a featured guest speaker of NACAC events. She is known for urging stressed-out students to stop trying to be perfect. when confronted with overwhelming evidence that suggests she faked her credentials, she admitted she fabricated her own academic credentials. After nearly three decades at MIT, a member school of NASFAA, she now readily admits:
Mariliee Jones is an over-weight, slow-footed, big-headed, over-indulging, and disgusting con-artist who failed to deliver honest and ethical services to students. This monstrosity of a specimen failed to disclose to students her real background, and she withheld material facts. She used the U.S. mails to perpertuate her scheme, and she used her credentials and association with MIT to enhance her credibility.
Marilee Jones was never arrested or charged with a crime because the Act conveniently does not address this type of fraud.
Example #2: (Director of Financial Aid Magda Jules)
- Marilee Jones DOES NOT even have an undergraduate degree;
- Marilee Jones DOES NOT have the courage to be an honest person to correct false resume she presented 28 years ago;
- Marilee Jones HAS CLAIMED degrees from Rensselaer Polytechnic, Albany Medical and Union College but in reality no record exists of this liar having earned degrees at those places;
On Wednesday, August 31, 2005, a federal grand jury returned a ten-count indictment against Magda Jules, 42, of Phoenix, AZ. The indictment alleges that Jules used her position as
Director of Financial Aid for Long Technical College in Phoenix to access student loan accounts. With that access, she was able to increase the amount of the student loans so that loan proceeds checks were sent to students at Long. According to the indictment, Jules was greedy and intercepted the loan proceeds checks, forged the student's name, made the checks payable to herself, and then negotiated the checks, converting the proceeds. The indictment alleges that the loans of 30 different students were involved and that Jules received approximately $40,000 of federally insured funds as a result of the scheme.
The federal indictment, CASE NUMBER # CR-05-00894, charges Jules with violating Title 18, U.S. Code, Section 1341, Mail Fraud and Title 20, U.S. Code Section 1097(a), Student Aid Fraud.
A conviction for Mail Fraud carries a maximum penalty of five years in prison, a $250,000 fine
or both. A conviction for Student Aid Fraud carries a maximum penalty of five years in prison, a $20,000 fine or both.
Example #3: (President, Delores Cross of Morris Brown College)
In May of 2006, DOLORES EVELYN CROSS, 69, of Chicago, Illinois, and PARVESH
SINGH, 64, of Valparaiso, Indiana, pleaded guilty to charges relating to a financial
aid fraud scheme at Morris Brown College, a private, non-profit college in Atlanta, GA. Both pleaded guilty before United States District Judge Julie Carnes.
"The federal financial aid crimes committed by Morris Brown College's former
President, Delores Cross, and financial aid director, Parvesh Singh, almost destroyed an
important institution of higher education in Atlanta," United States Attorney David E.
Nahmias said after the plea hearings. "Morris Brown is a historic college that has educated
thousands of students and has particularly provided opportunities to disadvantaged and
minority students. The defendants'criminal conduct hurt the college'sstudents, faculty, staff,
and alumni, and even students who never enrolled but had their good credit impaired. It is
important to note, however, that the current staff and administration of Morris Brown have
been fully cooperative and supportive in this case. The strength that Morris Brown College
has shown throughout this ordeal is an indication of its ability to survive this criminal activityfrom within, and to remain a vital and proud institution of higher learning in Atlanta."
Department of Education Inspector General John P. Higgins, Jr., said of the case, "It
is particularly disturbing that the fraud was carried out by the highest, most trusted officials
of the school. I am proud of the work of OIG Special Agents in bringing these individuals
to justice. I also would like to thank the professionals from the United States Attorney's
Office, the FBI, and the Department of Education Program Offices who worked tirelessly
with the OIG special agents on this investigation. We will continue to work with others in
law enforcement to see that federal student aid dollars benefit students and parents as
According to the U.S. Attorney investigating the case, and the information presented in court, defendant Cross served as president of Morris Brown College from November 1998 through
February 2002. Before she became president of Morris Brown, Dr. Cross had a lengthy
career in higher education, including significant experience in the administration of federal
financial aid programs. Dr. Cross had served for 8 years as the head of a New York state
guaranty agency that processed federal student loans, and she had served as president of
Chicago State University before joining Morris Brown.
Dr. Cross and Parvesh Singh first met and developed a professional relationship in
New York in the late 1980s. In 1995, when Dr. Cross was president of Chicago State, she
hired Singh for the position of Financial Aid Director. In 1998, when Dr. Cross became
president of Morris Brown, she immediately hired Singh as a consultant for financial aid.
In August 1999, Cross hired Singh as the permanent Director of Financial Aid and also Dean
of Enrollment Management at Morris Brown College. By placing Singh in these dual roles,
Dr. Cross gave him authority over student enrollment and student accounts, as well as financial-aid.
In summary, both of these two rampaging thieves were involved in a complicated scheme that involved inflated student enrollment figures, the theft and misdirection of federal student loan funds, which nearly bankrupted the school. When all was said and done, the two scheming, sinning, and thieving humans were merely slapped on the wrist by a soft judge. Although both pleaded guilty before United States District Judge Julie Carnes on May 1, 2006, and despite evidence that the crimes committed caused grave financial damage to the integrity and finances of the school, both CROSS and her male co-defendant received a sentence of 5 years probation; no jail time.
The non-punishment sent a message to financial-aid directors across the country that crime committed by highly educated, politically connected, and affluent persons against persons perceived to be unimportant will be tolerated and do not merit serious punishment.
Example #4: (Financial Aid "Preparers" and Parents Among 26 Charged in
Separate Cases Alleging $2.6 Million in Student Aid Fraud)
On March 16th of 2001, Scott R. Lassar, United States Attorney for the Northern District of Illinois, and Lorraine Lewis, the Education Department Inspector General, announced that 26 defendants were charged in 23 separate criminal cases with fraudulently obtaining a total of more than $2.6 million from the U.S. Department of Education in the form of grants, work-study and loans, The defendants included two former City Colleges financial aid advisors, a financial aid consultant and five other so-called "preparers," who assisted parents in filling out false financial aid forms, as well as 18 parents who allegedly falsified income information to fraudulently obtain education grants and other forms of assistance which their children were ineligible to receive. At the same time, Mr. Lassar announced that the U.S. Attorney's Office has filed more than 100 civil cases alleging similar fraud and obtained judgments totaling $825,676 in 96 cases over more than a year. Hundreds of additional civil lawsuits are expected, he said.
The criminal cases include charging the defendants with mail fraud and education fraud. Mr. Lassar announced the charges with Christopher J. Fox, Special Agent-in-Charge of the Midwest Regional Office of the Education Department's Office of Inspector General, which investigated the cases.
Mr. Lassar called the probe "the largest such investigation that's been conducted in this country involving fraud in education grants."
All of the charges allege fraud in the major student aid programs administered by the Education Department, including Pell Grants, Supplemental Educational Opportunity Grants and Federal Work Study Program, which provide need-based aid to eligible students for higher education.
As in the preceding examples, none of the individuals were prosecuted under the Act.
Unverifiable Claims/Non-Existent NACAC Membership Directory
Unlike the secretive nature of NACAC, NASFAA does publish a general membership directory that may be purchased by the general public. Exactly what NACAC may be attempting to hide or may be ashamed of with regards to their membership base is not clear. Speculation is that certain members of their membership base have been reported upon in the past by this Publisher, and the disclosure of their membership ties to NACAC, or other organizations, may invite questions of integrity and fair-dealing; one NACAC officer agreed to speak to a New York-based reporter in furtherance of a scheme by representaives of a suspected N.Y. crime family to smear the history, integrity, and superior ethics of National Academy of American Scholars.
Without viewing the collective printed membership roster of NACAC in a single volume, it is virtually impossible to ascertain the membership of certain persons into NACAC, and what groups of persons donate money to NACAC.
Request for NACAC Membership Directory Denied
This Publisher has called the offices of NACAC and asked for a copy of its printed, single-volume membership directory. NACAC claimed the directory was available for purchase only by members. Yet, this organization is tax-exempt by the Internal Revenue Service How is it possible for an American organization to conceal from the general public a general membership directory yet rely upon our tax dollars to subsidize their existence? Why should we, as consumers, be forced to pay a de facto "membership tax", complete a membership application, qualify for membership, wait for approval, merely to the to receive a printed copy of a membership directory?
The purpose of the request by this Publisher for a copy of the NACAC membership was multi-fold.
Next page: 3 of 5 (Part-IV)Iran, Afghanistan, Russia , Amongst NACAC Member locations
- This Publisher wanted to verify the boasts and claims made by NACAC that it is "an organization of more than 10,000 professionals from around the world."
- This Publisher wanted to verify the list of advertisers in the NACAC membership directory, and determine if those advertisers also appear in the NASFAA membership; and, if so, is the advertising content the same'
- This Publisher wanted to get a printed version of the NACAC membership directory because it is possible to easily change or block the web content of a form-entry single-line membership directory based upon numerous factors;
- This Publisher wanted to get a printed version of the NACAC membership directory to ascertain if NACAC was in compliance with its published Statement of Principles and Good Practice.
- This Publisher wanted to get a printed version of the membership directory to ascertain if NACAC was accepting advertising or membership revenue from groups or persons previously investigated by this Publisher, and whether or not such membership -if it existed -- influenced a NACAC officer to speak to a New York-based reporter regarding NAAS.
- This Publisher wanted to get a printed version of the NACAC membership directory to ascertain if NACAC was accepting advertising or membership revenue from groups or persons identified by U.S. State Department as possible terrorists. Remember, NACAC claims or implies that its membership base is world-wide, and provides ¶public categories of countries that are known to be havens of terrorism.
- Etc., etc.
Locations tied to Terrorism