Arizona Man Convicted of Conspiracy to Defraud the Government with Respect to Claims of Fraud

DENVER – On November 30, 2017, Tramell Thomas, of Phoenix, Arizona, was found guilty by a jury in U.S. District Court in Denver on all counts charged stemming from a financial aid fraud scheme, announced United States Attorney Bob Troyer.  Thomas was convicted of one count of conspiracy to defraud the government through 181 false Free Applications for Federal Student Aid (FAFSAs).  Thomas was also convicted of six counts of aiding and abetting mail fraud resulting from the mailing of debit cards that contained federal student aid to addresses under the conspirators’ control. 

In sum, the conspirators visited Department of Corrections websites for the states of Colorado, Arizona, Florida, Illinois, and Ohio, and they retrieved the names, dates of birth, and release dates of state inmates.  Armed with this information, one of the conspirators obtained these inmates’ social security numbers through her employment at a bank.  Once the conspirators had this information, they filled out FAFSAs requesting federal student aid to attend community colleges in Colorado and Arizona.  The conspirators chose inmates serving long prison sentences, believing that these inmates were less likely to notice that their identities had been stolen.  All told, the conspirators filed claims seeking approximately $1.3 million dollars.  The Department of Education paid out approximately $582,000, with $419,000 of these funds forwarded to the conspirators in the form of debit cards.  These funds were to be used for authorized living expenses while attending college.  The remainder of the money was paid to the community colleges. Thomas’s conspirators, Heather Carr, Mercedes Diaz, and Marcelle Green, have all pled guilty and await sentencing.

“The expert investigative team and sophisticated prosecutors did a remarkable job,” said U.S. Attorney Bob Troyer.  “These thieves received a well-deserved education in federal justice.” 

“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality, it’s not a personal slush fund.  As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Western Regional Office.  "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Mr. Thomas accountable for his criminal actions.”

“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said Acting U.S. Postal Inspector in Charge Nicole Davis of the Denver Division.  “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes.  We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”

At his April 12, 2018 sentencing hearing, Thomas faces up to 10 years in federal prison on his conspiracy conviction and up to 20 years in federal prison on each of his six mail fraud convictions.  He also faces a fine of up to $250,000 on each count.

This case was investigated by the United States Department of Education, Office of Inspector General and the United States Postal Inspection Service.

This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Bryan D. Fields.