Former Tennessee State University Employee Sentenced To Federal Prison In Student Loan Fraud Scheme
Diverted More than $84,500 in Student Loan Payments
NASHVILLE, Tenn. – August 17, 2020 – A former Tennessee State University (TSU) employee was sentenced Friday to 32 months in federal prison for fraudulently receiving and misappropriating more than $84,500 in student loan payments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Renauld Clayton, 32, of Nashville, was indicted in May of last year on charges of student loan fraud, wire fraud, and aggravated identity theft. He pleaded guilty in February and admitted that during 2014-2015, while employed in the admissions office of TSU, he obtained the personal identifying information of TSU students and others and applied for student loans in their names. When the funds were received, Clayton diverted the money to his own use and others and deposited more than $60,000 of the funds to bank accounts that he controlled.
U.S. District Judge Eli J. Richardson also ordered Clayton to pay $84,506.00 in restitution
This investigation was conducted by the U.S. Department of Education – Office of Inspector General and the U.S. Secret Service, following an internal audit by TSU. Assistant U.S. Attorneys Sara Beth Myers and Kathryn W. Booth are prosecuting the case.
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