OIG Investigative Reports, Arrest of Individual for Pell Grant 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 Investigative Report U.S. Department of Justice Federal Bureau of Investigation www.fbi.gov Federal Office Building 150 Carlos Chardon Avenue Suite 526 Sun Juan, Puerto. Rico 00918 (787) 7546000 Contact: Harry Rodriguez Special Agent FBISan Juan Media Representitive (787) 7591550(787) 9940441 FOR IMMEDIATE RELEASE Date: April 2,2008 PRESS RELEASE Arrest of Individual for Pell Grant Program Fraud On March 31, 2008, Federal Agents with the U.S. Department of Education-Office of the Inspector General and the FBI arrested, without incident, Reinaldo OrtizRosario in Corozal, Puerto Rico for his alleged participation in a scheme to falsify student records in order to receive U.S. Government student financial aid. OrtizRosario was charged in an eleven count indictment by a federal grand jury in San Juan, Puerto Rico on March 26, 2008. OrtizRosario is charged with one count of Student Financial Aid Fraud, nine counts of Wire Fraud, and one count of Obstruction of a Federal Audit. According to the indictment, OrtizRosario was the president and owner of Instituto Tecnológico Empresarial with two campuses located in Trujillo Alto, Puerto Rico and Lares, Puerto Rico. The Instituto Tecnológico Empresarial was a vocational technical institution. On July 17, 2002, the Instituto Tecnológico Empresarial was accepted in the Program Participation Agreement relating to the Pell Grant program. As a condition to participate in this program, the students who sought Pell Grant funds had to have either a high school diploma, a general education development (GED) certificate, or had to have passed an independently administered ability to benefit test. The indictment alleges OrtizRosario submitted to the U.S. Department of Education false GED test results for 38 students, and as a result, the Instituto Tecnológico Empresarial received approximately 80,000.00 dollars in Pell Grant funds. The indictment further alleges OrtizRosario falsified student records so as to make students who were not eligible for these funds appear to be eligible when in fact, he knew these students had neither graduated high school, obtained a GED certificate, nor passed an independently administered ability to benefit test. In addition, during a review of the program in July 2004 by the officials with the U.S. Department of Education, OrtizRosario fraudulently portrayed that all the students were eligible for this grant when in fact; it is believed he had falsified many of the GED certificates found in the students files. OrtizRosario had an initial appearance before U.S. Magistrate Judge Justo Arenas on March 31, 2008 and was released pending a 50,000.00 dollar cash or secured bond. OrtizRosario is scheduled to have his arraignment on April 4, 2008. This case is being prosecuted by Assistant United States Attorney Myriam Y. FernándezGonzález of the District of Puerto Rico. This investigation was conducted by the U.S. Department of EducationOffice of the Inspector General and the FBI. The public is reminded that an indictment is not evidence of any guilt. A defendant is presumed innocent and entitled to a fair trial. The U.S. government has the burden of proving guilt beyond a reasonable doubt. #### The public is reminded that a criminal complaint is not evidence of any guilt. The defendant is presumed innocent and entitled to a fair trial. The U.S. government has the burden of proving guilt beyond a reasonable doubt. Top Printable view Share this page Last Modified: 01/05/2009 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
Arrest of Individual for Pell Grant Program Fraud. San Juan, PR, April 2, 2008
Published by the Department of Education, Office of Inspector General on 2008-04-02.
Below is a raw (and likely hideous) rendition of the original report.