One’s college years are often associated with learning and a time of great personal growth. For many college students, the years spent studying and attempting to obtain a degree are also marked by financial insecurity.
According to the National Center for Education Statistics, during the 2011-2012 academic year, the average annual cost of attending a 4-year public or private college was $14,300 and $37,800 respectively. Many college students are paying hefty tuition bills with student loan funds. In fact, recent numbers released by The Project on Student Debt show that nearly 70 percent of college students graduate with an average of $28,400 in student loan debt.
Eighteen college students and recent graduates at one U.S. college were recently arrested and now face criminal charges related to tax fraud. According to federal law enforcement authorities, the students and former students are accused of allowing others to use their financial aid accounts to deposit fraudulent tax refunds. For each successful refund deposited in an account, the student account holder reportedly received $100 to $1,000.
Federal officials assert similar tax fraud schemes that use the financial aid accounts of cash-strapped students are becoming more common across the country. Speaking out about the most-recent arrests, one U.S. attorney stated that "allowing their accounts to be used for this purpose ... will ruin their lives."
While criminal acts related to identify theft and tax fraud schemes should never be condoned, in this case the students are also victims. The individuals who devised this scheme intentionally preyed upon college students who were likely already taking out student loans and in great need of extra income.
We all make mistakes and it's important to learn from those mistakes. However, when it comes to cases involving criminal charges of identity theft and tax fraud, much like college, these lessons come at a high price. If convicted, in addition to hefty fines, the 18 defendants could face between two to 10 years in prison.
If you, or someone you know, have made a similar mistake, we encourage you to contact our office immediately to discuss how we can help get you back on track.
Source: Miami Herald, "Nearly 20 Miami-Dade College students charged in ID theft-tax fraud crackdown," Jay Weaver, Nov. 18, 2014
WPTV, “Florida student aid accounts used in ID theft,” AP, Nov. 18, 2014
