OIG: Office of Inspector General
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Investigative Reports

Indianapolis, Indiana, June 29, 2001

Contact Person
United States Attorney
(317) 226-6333

Man Sentenced for Student Loan Fraud

Timothy M. Morrison, United States Attorney for the Southern District of Indiana, announced that DAVID J. DEORIO, 41, presently detained in the Marion County Jail, was sentenced to 23 months imprisonment today by U.S. District Court Chief Judge Larry J. McKinney following his previously entered guilty plea to making false statements on a federally insured loan. This case was the result of an investigation by the Department of Education.

DAVID J. DEORIO, applied for over $350,000 in federally insured student loan funds by submitting eighteen Federal Family Education Loan applications to various guarantee agencies and lenders. DEORIO caused eleven of these eighteen FFEL applications to be mailed and/or wired to USA Group of Fishers (now Sallie Mae), in connection with his attendance at Oxford University and London Business School, both schools located in the United Kingdom. In eight of the eighteen applications, DAVID J. DEORIO falsely and fraudulently claimed to be enrolled as a student at either Oxford University or London Business School. On fourteen of the eighteen FFEL applications, school officials from Oxford University and London Business School verified that the school certification section on the loan application documents submitted to various guarantee agencies and lenders had been falsified. Additionally, DEORIO used false social security numbers on his applications.

According to Assistant United States Attorney James M. Warden, who prosecuted the case for the government, Judge McKinney also imposed 3 years supervised release following DEORIO's release from imprisonment. DEORIO was ordered to make restitution in the amount of $355,257.89.

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Last Modified: 03/02/2005