Former professor guilty in student financial aid fraud scheme

HOUSTON - A 43-year-old Richmond resident has admitted to theft of government funds, fraud, unlawful use or transfer of identity documents and aggravated identity theft in an extensive scam involving hundreds of fraudulent financial aid applications, announced Acting U.S. Attorney John G.E. Marck.

For approximately five years, Emmanuel Finnih submitted over 100 false applications for financial aid to the Department of Education for numerous straw students across several colleges and universities in Texas.

Finnih, who worked as a professor at a local university, used the personal identifiers of other individuals to prepare, submit and sign false and fraudulent financial aid applications and master promissory notes in their names. In furtherance of his scheme, Finnih utilized mailing addresses, telephone numbers, and email accounts he controlled to ensure ED and colleges would send any communications directly to him. He then obtained the financial aid refunds via electronic transfer, check and prepaid debit cards sent either to mailing addresses or bank accounts he designated and controlled.

Finnih further admitted to the aggravated identity theft of two victims whose personal identifiers had been repeatedly used to apply for and obtain federal financial aid over the course of several years. He also acknowledged he was fraudulently in possession of false identity documents - temporary driver permits and identification cards - with the intent to unlawfully use or transfer those documents in furtherance of the fraud scheme.

Some victims had tens of thousands of dollars in loans in their name, and the fraudulent applications significantly impacted their credit.

The scheme also caused at least $600,000 in losses to the United States.

"Finnih spent years stealing victims' identities and defrauding the federal government-today, he stood in court and admitted exactly that," said Marck. "In the Southern District of Texas, fraud against the American taxpayer is not a financial strategy-it is a path to federal prison."

"Federal student aid exists so that individuals can make their dream of a higher education a reality. Ensuring that those who steal student aid are stopped and held accountable for their criminal actions is a big part of our mission," said Special Agent in Charge John Woolley of ED - Office of Inspector General's Central Regional Office. "I'm proud of the work of the Office of Inspector General and our law enforcement partners for their work in this case and we will continue to work together to stop those who steal Federal education funds. America's students and taxpayers deserve nothing less."

U.S. District Judge Andrew Hanen will impose sentencing June 22. At that time, Finnih faces up to 10 years in federal prison for theft of government funds, while the student financial aid fraud and unlawful use or transfer identity documents each carries a possible five-year prison term. He will also be ordered to serve a mandatory two years for aggravated identity theft which must be served consecutively to any other sentence imposed. In addition, Finnih could be ordered to pay up to $250,000 in fines for each count and restitution.

Finnih was permitted to remain on bond pending his sentencing hearing.

ED - OIG conducted the investigation with assistance from Lone Star College Police Department, U.S. Marshals Service and U.S. Postal Inspection Service. Assistant U.S. Attorneys Shirin Hakimzadeh and Brad R. Gray prosecuted the case.