January 18, 2011

GEORGIA MAN PLEADS GUILTY TO STUDENT LOAN FRAUD

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Will H. Callaway, Jr.,age 42, of Decatur, Georgia, pleaded guilty to wire fraud in federal court in connection with a student loan fraud scheme. As a result of today's guilty plea, Callaway faces up to 20 years' imprisonment $250,000 in fines, three years of supervised release and mandatory restitution of $30,000. No date has been set for sentencing.

     According to United States Attorney Peter J. Smith, Callaway admitted that he applied for a series of student loans between 2007 and January 2009 over the internet and that the applications were fraudulent because he did not intend to use the money for educational purposes and they contained multiple false statements. As a result of the scheme, Callaway obtained $30,000 and attempted to obtain an additional $29,800, to attend various on-line colleges. The loans were processed by the Pennsylvania Higher Education Assistance Agency (PHEAA), located in Harrisburg, Pennsylvania.

     The case was investigated by PHEAA's office of Investigation Services and the U.S. Department of Education Office of Inspector General. Prosecution is assigned to Senior Litigation Counsel Bruce Brandler.

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