U.S. Department of Justice

Middle District of Pennsylvania

ATLANTA MAN CHARGED WITH FRAUDULENTLY OBTAINING ALMOST $300,000 IN EDUCATIONAL LOANS

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Atlanta, GA man pled guilty in federal court today in Scranton to a charge of fraudulently obtaining approximately $300,000 in educational loans.

Gerald Brown, age 36, of Atlanta, GA pled guilty before Senior United States District Court Judge James M. Mtmley to making false statements in various applications to get federal and private educational loans from 2005 through early 2009. Brown faces up to five years imprisonment and has agree to make restitution in the amount of $296,369. Sentencing was deferred pending a pre-sentence investigation.

According to United States Attorney Peter J. Smith, investigators with the United States Department of Education's Office of Inspector General and the Commonwealth of Pennsylvania's Pennsylvania Higher Education Assistance Agency (PHEAA) in Harrisburg deterruined that the defendant had obtained numerous private and federal financial education loans through the use of false information. Smith said it was determined that through false information on the various loan applications the defendant obtained $296,369 to which he was not entitled.

The case was investigated by the United States Department of Education's office of Inspector General and the Investigative Services section of the Pennsylvania Higher Education Assistance Agency. Assistant United States Attorney William A Behe has been assigned the prosecution of this case.