2 Detroiters accused of stealing over $12 million in federal student aid
Two Detroit residents are accused of stealing more than $12 million from the U.S. Department of Education through fraudulent federal student aid applications.
The FBI, the U.S. Department of Education's Office of Inspector General and the U.S. Department of Labor's Office of Inspector General were among those involved in the investigations.
Brandon Robinson, 41, was charged with wire fraud relating to false student aid claims made in the names of other people, the district attorney's office said. Robinson was arrested and appeared in federal court on Wednesday.
Federal prosecutors say Robinson led a years-long scheme to obtain fraudulent Federal Student Aid benefits involving the tactic of "straw students," those who were enrolled primarily for the purpose of collecting Federal Student Aid. Between January 2015 and February 2024, attorneys said fraudulent claims were filed for more than 1,200 people involving more than 100 schools in 24 states.
As a result of the scheme, prosecutors say Robinson caused more than $16 million in Federal Student Aid money to be awarded, with more than $10 million of that amount distributed.
Additionally, prosecutors claim that Robinson filed over 100 fraudulent unemployment insurance claims between April 2020 and March 2023, resulting in more than $1 million in unemployment benefits being distributed.
Michelle Hill, 48, of Detroit, was charged with wire fraud in connection with a separate Federal Student Aid scheme. Hill was arrested and appeared in federal court on Tuesday.
Investigators accuse Hill of devising and participating in a scheme to obtain fraudulent Federal Student Aid benefits involving more than 80 individuals who were predominantly enrolled at Wayne County Community College. Prosecutors allege that many of them were taking the same or similar online courses toward the same or similar degree programs, and that Hill often herself completed the assignments so as to make it appear that students were working toward degrees and remaining eligible for Federal Student Aid.
As a result of the scheme, prosecutors say Hill fraudulently caused more than $3 million in Federal Student Aid benefits to be awarded, with more than $2.5 million of that money distributed.