Former Owner Of Stenotype Institute Pleads Guilty To Failing To Refund Federal Student Aid Funds
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Gloria Wiley (72, Dansville, KY) has pleaded guilty to a charge of failure to refund federally insured student aid funds, commonly referred to as Stafford Loans and Pell Grants. Wiley faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. As part of her plea agreement, Wiley has agreed to pay nearly $300,000 in restitution to affected students, the U.S. Department of Education, and the Department of Veterans Affairs.
According to the plea agreement, Wiley was the owner of Stenotype Institute of Jacksonville, Inc.—a Jacksonville-based stenography school that provided professional education to individuals pursuing stenography careers, including court reporting and medical transcription. Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, fees, and living expense stipends. Excess funds drawn on behalf of students were required to be refunded to the U.S. Department of Education or to the student within 45 days.
Beginning in June 2015, instead of refunding the excess refunds, Stenotype began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for her personal use. In total, Wiley and Stenotype held approximately $290,000 in refunds due to the U.S. Department of Education and to former students, and $9,000 due to the Department of Veterans Affairs, none of which have ever been paid. Stenotype ceased operations in March 2016, shortly after a program review by the U.S. Department of Education.
This case was investigated by the U.S. Department of Education Office of Inspector General and the Department of Veterans Affairs Office of Inspector General. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.