DANVILLE, Va. – A Danville woman pleaded guilty to student loan fraud charges in court this week.
Karren Warren, 43, was charged with one count of student loan fraud and one count of unlawful transfer or possession of identification affecting interstate commerce.
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Court documents show that from 2013 to 2018, Warren devised a scheme to prepare and submit false FAFSA forms. She admitted to recruiting others to provide personal information to submit false documents to the Department of Education, American Public University System, and Capella University.
Officials say once Warren obtained financial aid, she then enrolled the same individuals in online institutions, but most either did not participate or withdrew. Warren then converted the financial aid for her own personal use, violating Department of Education requirements.
In total Warren caused at least $264,00 in losses to APUS, Capella University, and USDOE.
She now faces a maximum penalty of 15 years in prison.