Ringleader Of Fraud Conspiracy Sentenced To Prison

OAKLAND – Kyle Edward Moore was sentenced, today to 37 months in prison, and was ordered to pay $520,904 in restitution for carrying out two conspiracies to commit financial aid fraud and wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.

Moore pleaded guilty on Feb. 14, 2014, to two counts of conspiracy to commit financial aid fraud and one count of wire fraud. According to the plea agreement, Moore conspired to obtain federal student aid funds offered under the Title IV Federal Student Assistance Program. Moore and his co-defendants obtained the aid by preparing and transmitting fraudulent Free Applications for Federal Student Aid (FAFSAs) to the U.S. Department of Education.

In carrying out the fraud scheme, Moore and his co-defendants recruited third-parties to serve as “straw students” and then assisted the straw students in preparing, signing, and transmitting fraudulent FAFSAs. Moore knew that many of the straw students were not eligible to obtain Title IV funds because, among other things, the straw students had not obtained high school diplomas or a recognized equivalent and had no intention of attending school or using the funds for educational purposes. After receiving the student loan funds, Moore and his co-defendants shared the fraudulently obtained funds among themselves and sometimes with the straw students.

Moore admitted to intending to steal $771,268 and to successfully stealing $520,904.

Moore, 29, of Hayward, and three co-defendants were indicted by a federal grand jury on Aug. 15, 2013. They were charged with conspiracy to commit financial aid fraud, in violation of 18 U.S.C. § 371, and with multiple counts of wire fraud, in violation of 18 U.S.C. § 1343.

The sentence was handed down by the Honorable John S. Tigar, United States District Court Judge, in Oakland, following a guilty plea on two counts in violation of 18 U.S.C. § 371, and on one count of 18 U.S.C. § 1343. Judge Tigar also sentenced the defendant to a three-year period of supervised release and to forfeit $520,904 in the form of a money judgment. The defendant will begin serving the sentence on Jan. 12, 2015.

Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan and Patty Lau. The prosecution is the result of an investigation by the U.S. Department of Education, OIG; the FBI; and the U.S. Department of Housing and Urban Development, OIG.

(Moore indictment )