A 60-year-old grandmother from Fayetteville is trading her home for a federal prison cell after orchestrating the largest student aid fraud scheme in North Carolina’s history. Cynthia Denise Melvin was sentenced to five years behind bars by Chief Judge Richard E. Myers II, following a massive investigation into a web of “straw students” used to siphon millions of dollars from the U.S. Department of Education.
The operation, which spanned seven years from 2016 to 2023, involved Melvin recruiting roughly 80 individuals to pose as students.
Using their personal information, she applied for federal financial aid at several North Carolina institutions, including Wake Tech, Cape Fear Community College, and Fayetteville Tech.
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To keep the money flowing, Melvin didn’t just fill out paperwork; she actively impersonated the students online, faking class attendance and completing coursework to ensure the schools released refund checks intended for “educational expenses.”
Federal investigators ultimately discovered that while the scheme raked in over $5 million in total awards, more than $3.5 million was actually paid out. During a raid on Melvin’s home, agents with the Office of Inspector General found a treasure trove of evidence, including lists of student usernames, passwords, and bank routing numbers used to funnel the stolen taxpayer funds.
U.S. Attorney W. Ellis Boyle didn’t mince words during the proceedings, noting that Melvin should have been focused on her family rather than a criminal enterprise.
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“She should have been taking care of her grandkids, setting an example of how to be a good person,” Boyle remarked. “Instead, now she will spend half a decade in federal prison apart from them.”
In addition to her 60-month prison sentence, Melvin has been ordered to pay back $3,641,473 in restitution.
The case, which Melvin pleaded guilty to back in February 2025, serves as a major milestone for the Department of Education’s Office of Inspector General as they continue to crack down on fraud rings that exploit programs meant for legitimate students in need.
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