CONTACT: Gina Balaya
U.S. Department of Justice
United States Attorney
Eastern District of Michigan
211 W.Fort Street
Detroit, Michigan 48226
November 26, 2007
FINANCIAL AID DIRECTOR OF COSMETOLOGY SCHOOL SENTENCED FOR FALSIFYING RECORDS
A 54-year-old Flint woman who falsified records in order to obtain pell grant funds was sentenced to 12 months and a day, United States Attorney Stephen J. Murphy announced today.
Receiving the sentence today before United States District Judge Paul V. Gadola was Margaret Gurzick, the financial aid director of Mr. David's School of Cosmetology.
In addition to the prison sentence, Judge Gadola also ordered Gurzick to pay restitution in the amount of $225,017.00.
The information presented to the court at the time of Gurzick's guilty plea in July of this year, established that Gurzick, at the direction of co-defendant Kathy Brokaw-Hill , co-owner of Mr. David's, knowingly falsified documents and aided and abetted each other to do so in preparation for a Department of Education audit regarding disbursements under the Pell Grant Program. An audit of Mr. David's revealed that student files contained forged and altered documents including GED transcripts and diplomas. As a result of Gurzick's and Brokaw-Hill's actions, Mr. David's received financial aid assistance it was not entitled to. The total loss to the Department of Education was $225,017.00.
Co-defendant Brokaw-Hill also pleaded guilty in July of this year and is scheduled to be sentenced on January 9, 2008.
U.S. Attorney Murphy thanked the Department of Education, Office of Inspector General , for their assistance in the successful investigation of the case. It was prosecuted by Assistant United States Attorney Nancy Abraham.