OIG Investigative Reports, Former Official with LAUSD Arrested in Fraud Scheme in which He Authorized Large Purchase of Book He Wrote Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigation Report FOR IMMEDIATE RELEASE August 8, 2008 www.usdoj.gov/usao/aln/ U.S. Department of Justice UNITED STATES ATTORNEY ALICE H. MARTIN NORTHERN DISTRICT OF ALABAMA CONTACT: KAREN NARAMORE Telephone: (205) 244-2001 Fax: (205) 244-2171 Scottsboro Woman Sentenced to 30 Months for Role in Pell Grant Fraud BIRMINGHAM, AL — WANDA BELL GAITHER, 58, of Scottsboro, Alabama, was sentenced today by United States District Court Judge R. David Proctor to 30 months in federal prison for her managerial role in a scheme that defrauded the United States Department of Education of approximately $100,000.00. GAITHER was also ordered to pay restitution in the amount of $107,527.00. The sentence is announced today by United States Attorney Alice H. Martin and the U.S. Department of Education Office of Inspector General. GAITHER was the owner of Gaither and Company Beauty School in Scottsboro, where the majority of students received Pell Grant awards to cover their tuition. GAITHER pled guilty in April to participating in and directing her employees to participate in a scheme in which Gaither and Company Beauty School submitted falsified Pell Grant applications to obtain Pell Grant funds for which students were not qualified. "The Pell Grant program exists to help the neediest people in our society receive higher education and vocational training that they otherwise could not afford. When someone like Wanda Gaither steals from that program, she steals from those people who truly need those education dollars," said Alice H. Martin, U.S. Attorney for the Northern District of Alabama. "I am proud of the work of OIG Special Agents and their commitment to protecting the integrity of federal education funds," said Mary Mitchelson, Acting Inspector General for the U.S. Department of Education. "We will continue to work with our colleagues in law enforcement to aggressively pursue those who seek to defraud federal education programs at the expense of our nation's students. This case was investigated by Special Agents of the U.S. Department of Education Office of Inspector General. Assistant United States Attorneys Melissa K. Atwood and William C. Athanas and Trial Attorney Nicola Mrazek of the United States Department of Justice Fraud Section prosecuted this matter on behalf of the United States. Top Printable view Share this page Last Modified: 08/22/2008 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
Scottsboro Woman Sentenced To 30 Months For Role in PELL Grant Fraud Birmingham, AL, August 8, 2008
Published by the Department of Education, Office of Inspector General on 2008-08-08.
Below is a raw (and likely hideous) rendition of the original report.