Students From MDC Accused Of Fraud
Eighteen current or former Miami Dade College students involved in a scheme to steal tax refunds issued by the United States Department of Treasury were charged with conspiracy for stealing government property, according to officials with the U.S. Attorney’s Office.
The stolen identities affected 644 victims and resulted in a $1.9 million loss. Organizers of the fraud mostly used students’ Higher One accounts to commit federal benefit fraud and social security fraud. The ongoing investigation comprised more than 1,000 student accounts at MDC.
The “takedown is further evidence of the insidious and widespread nature of stolen identity tax refund fraud,” said U.S. Attorney General for the Southern District of Florida, Wifredo A. Ferrer. “We cannot permit this type of crime to negatively affect young people and their prospects while in college.”
Fourteen of those charged were arrested. The four others were at large as The Reporter went to press.
Defendants connected to MDC include Gary Antoine, Gerrey Cherrelus, Sandy Jean-Louis, Andy Lamour, Marvin Dubuisson, Ronald Dumond, Bianca Noel, Erving Jacques Etienne, Mitsie Faustin, Caleb Fadet, Laquisha Q. Johnson, Jonathan Joseph, Beethoven Nelson, Farah Norelus, Smith Jean, Beatrice Simeon, Glasner Simplice, and Rutherford Willy.
Higher One released a statement saying they will not tolerate the exploitation of students and they “will be vigilant in safeguarding our customers’ personal and financial information and will work with our bank partners to report these illegal activities to authorities.”
The card provides financial services to colleges and universities throughout the United States. It disburses to students from Federal Financial Aid awards, loans and grants after tuition is paid.
“Our system of internal controls is designed to proactively detect this type of fraudulent tax refund activity across all accounts along with other types of fraudulent activity,” said Lauren Perry Public Relations Coordinator at Higher One, based in New Haven, Connecticut.
The U.S. Attorney’s Office said the defendants and their co-conspirators used stolen identities, submitting fraudulent tax returns to the Internal Revenue Service. The tax returns directed the resulting refunds be deposited in various bank accounts controlled by the defendants and some were managed by Higher One, Inc.
“They stole personally identifiable information from unsuspecting victims to unlawfully file tax returns and redirect Social Security payments,” said George L. Piro, Special Agent in charge of the FBI in Miami.
Juan Mendieta, director of communications at MDC said the College looks forward to a thorough review and resolution of the matter.
“The actions of these individuals are in no way a reflection of the vast majority of the hardworking, honest students at Miami Dade College,” Mendieta said.
But the situation still raises many questions for students who use Higher One and depend on Federal Financial Aid.
“They should make it more safe and I think that the students shouldn’t be able to work in the Financial Aid department,” said Alexis Diaz, a criminal justice major at MDC. “I feel like they should have more security.”
It is not clear if the students worked in financial aid offices on campus or if they had any connections with the department. The College has not released a statement to students and the community clarifying or explaining what occurred.
Higher One has had its share of scandals. In 2014 the Federal Reserve Bank of Chicago investigated the financial services provider for violating students’ consumer rights for excessive fees. Similar charges were brought in 2013 and 2012.
“If you sell your Higher One account and allow it to be used, it is a criminal offence that can result in big consequences,” said officials with the U.S. Attorney’s Office. “Easy money has consequences and you could lose career opportunities.
Staff writer Brayan Vázquez contributed to this report.