Detroiter Pleads Guilty to Running Decade-Long Student Aid Fraud

DETROIT - Michelle Denise Hill, 48, of Detroit, Michigan, pleaded guilty today to wire fraud in connection with a decade-long scheme to fraudulently obtain more than $2.5 million in federal student aid funds, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by John Woolley, Special Agent in Charge, U.S. Department of Education, Office of Inspector General.

According to court records, beginning no later than July 2015 and continuing through at least July 2025, Hill devised and executed a scheme to fraudulently obtain Federal Student Aid - specifically Federal Pell Grants and Federal Direct Student Loans - from the U.S. Department of Education. Hill submitted fraudulent aid applications for more than 80 individuals who were purportedly eligible students seeking to attend Wayne County Community College (WCCC) in Detroit, Michigan. In reality, those individuals had no interest in or intent to pursue a degree. Hill obtained the necessary high school diplomas on their behalf, with many from the same Florida online "fast-track" school, and completed their WCCC online coursework for them, often simultaneously, to create the appearance of academic progress and extend their eligibility for aid across multiple semesters. Hill generally split the fraudulently obtained aid proceeds with the purported students.

As a result of the scheme, Hill caused more than $3,000,000 in federal student aid benefits to be awarded, with approximately $2,530,854 actually disbursed on the fraudulent claims. Hill has agreed to pay $2,530,854 in restitution to the Department of Education.

Hill pleaded guilty before United States District Judge Brandy R. McMillion. Sentencing is scheduled for August 3, 2026, where Hill faces a maximum penalty of 20 years in prison.

United States Attorney Gorgon stated, "Federal student aid exists to open doors for Americans who are working to better themselves and their families. Michelle Hill slammed those doors shut, turning a lifeline into a racket and stealing millions from a program that belongs to our hardworking neighbors."

"I am proud of the work of OIG Special Agents and our law enforcement partners for their work in this case and their dedication to protecting the integrity of Federal student aid funds," said John Woolley, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Central Regional Office. "We will continue to pursue those who misappropriate Federal student aid or game the system for their own self-interests. America's students and taxpayers deserve nothing less."

This case was investigated by the U.S. Department of Education, Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Ryan A. Particka and John K. Neal.