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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Indiana

FOR IMMEDIATE RELEASE
Wednesday, January 11, 2017

Masters of Cosmetology Charge

FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announced that an information was filed charging Rachel Crawford, 38, of Fort Wayne, Indiana, with obtaining by fraud and materially false statements, federal financial funds within the jurisdiction of the United States Department of Education. The Department of Education provides certain funding through Family Federal Education Loans (FFEL), a program administered by Sallie Mae. This charge relates to Crawford’s actions when she was the financial aid director at Masters of Cosmetology.

 

In conjunction with this information, Crawford has entered into an agreement wherein she will plead guilty to the charge.

 

The United States Attorney’s Office advised that Crawford has cooperated with this investigation throughout. This investigation led to the earlier conviction of Kaydean Geist, owner of Masters of Cosmetology.

 

As part of this overall investigation, the Department of Education agreed to cancel certain FFEL loans through Sallie Mae that were illegally acquired by Masters of Cosmetology, thereby relieving many students from loans that should never have been authorized by Masters of Cosmetology.

 

The above charge and plea concludes the matter regarding the financial irregularities regarding the Masters of Cosmetology School. Crawford will appear in court for her change of plea hearing before Magistrate Judge Susan Collins at a future date.

 

The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.

 

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

 

This investigation was conducted by the Federal Bureau of Investigation, Indiana State Police and the United States Department of Education-Office of Inspector General. This case was handled by Assistant United States Attorney Tina L. Nommay.

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Topic(s): 
Financial Fraud
Updated January 11, 2017