OIG Investigative Reports, Cory Alan Bailey, Cedar Rapids Man Sentenced To Prison for Student Loan Fraud 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 Department of Justice Northern District of Iowa FOR IMMEDIATE RELEASE: January 3, 2011 www.justice.gov/usao/ian 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. Printable view Last Modified: 01/27/2011 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
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.