Cory Alan Bailey, Cedar Rapids Man Sentenced To Prison for Student Loan Fraud. Cedar Rapids, IA., January 3, 2011

Published by the Department of Education, Office of Inspector General on 2011-01-03.

Below is a raw (and likely hideous) rendition of the original report.

OIG Investigative Reports, Cory Alan Bailey, Cedar Rapids Man Sentenced To Prison for Student Loan Fraud
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Northern District of Iowa
January 3, 2011
Contact: Bob Teig
Hach Building,
Suite 400,
401 1st Street, S.E.
Cedar Rapids, Iowa 52401-1825
Phone: (319) 363-0091
Fax:  (319) 363-1990
Cory Alan Bailey, Cedar Rapids Man Sentenced To Prison for Student Loan Fraud
A man who participated with others in a scheme to fraudulently obtain federal student loans was sentenced today to three years in federal prison.
Cory Alan Bailey, age 22, from Cedar Rapids received the prison term after a June 10, 2010, guilty plea to one count of mail fraud.
In a plea agreement, Bailey admitted participating in a scheme with others to fraudulently obtain federal student loan proceeds. Bailey recruited others to sign up for classes at Kirkwood Community College in Cedar Rapids. Bailey then created e-mail accounts for those he recruited. Bailey and his co-schemers used the e-mail accounts to apply for federal financial aid for the others, enroll them in classes, and arrange for their federal loan proceeds checks to be directed to post office boxes under the control of his co-schemers. Those recruited were not really students attending classes.
Bailey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Bailey was sentenced to 36 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $5,854 in restitution to Kirkwood Community College, and $133,066 in restitution to the United States Department of Education, for a total of $138,920 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bailey was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter E. Deegan, Jr. and was investigated by the United States Department of Education and the United States Postal Inspection Service.
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Last Modified: 01/27/2011
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