DETROIT – Two Detroiters were arrested and are facing federal charges for allegedly stealing millions in federal student loans in separate schemes.
Michelle Hill and Brandon Robinson are facing wire fraud charges after allegedly getting fake Federal Student Aid (FSA) benefits, and using the money for personal use.
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‘School hustle’
Brandon Robinson, 41, was arrested on Sept. 25. Federal authorities said he is responsible for leading a years-long scheme to get fraudulent FSA benefits involving “straw students” who were enrolled for the purpose of receiving those funds.
Between January 2015 and February 2024, Robinson allegedly submitted fake FSA claims for more than 1,200 people, involving over 100 schools in 24 states.
As a result, he allegedly caused more than $16 million in benefits to be awarded, with more than $10 million disbursed. He also allegedly over 100 fraudulent unemployment insurance claims between April 2020 and March 2023.
The investigation into Robinson began in 2022 after a complaint was filed by Nunez Community College in Louisiana, stating they received an identity theft complaint from Detroit.
The identity theft victim reported that they received a letter from the Department of Education stating an FSA was taken out in his name from Nunez. The victim said they never applied for FSA, never attended school and never lived in Louisiana.
After further investigation, federal officials found that the FSA funds were disbursed into bank accounts owned or accessible by Robinson. The money disbursed into the banks were then withdrawn as cash at ATMs in Michigan.
Federal investigators released photos of what appears to be Robinson withdrawing the FSA funds from Metro Detroit ATMs from 2020 and 2022.
Federal authorities executed search warrants at Robinson’s home on Telegraph Road. During the search, agents seized evidence that allegedly contained elements of the FSA scheme.
Federal investigators also found Robinson’s computer with the screen on, which had the student login of Wayne County Community College. Next to his computer, officials said, were baskets labeled with the names of the defrauded schools in the case. Within the bins, authorities found thousands of index cards with handwritten notes of people’s personal information, debit cards and allegedly multiple notes underlying the scheme.
When investigators searched Robinson’s phone, they found photos hundreds of people’s personal information including high school diplomas, birth certificates, driver’s licenses, passports and pictures of students holding various forms of identifications.
Text messages were found on Robinson’s phone, where he allegedly had a conversation with someone and referred to his alleged FSA fraud scheme as his “school hustle.”
Robinson faces a federal charge of wire fraud.
Claims to ‘help’ people in alleged scheme
Michelle Hill, 48, was arrested on Sept. 24 for allegedly getting fraudulent FSA benefits involving more than 80 people, who most were enrolled at Wayne County Community College.
It’s alleged that many of the people involved were in the same or similar degree programs and were taking the same or similar online courses. Hill is accused of completing the coursework on the students’ behalf to make it appear that the students were advancing towards degrees and prolonging their eligibility for FSA benefits.
The investigation began in 2022 after a WCCC official reported to authorities that there had been an influx of FSA recipients from Detroit who all went to the same Florida high school. The high school offers a paid program that helps students earn a “fast track” High School Diploma by one exam, which cannot be used for college admissions.
Investigators learned that all the “straw” students working with Hill were knowing participants -- her friends, family or acquaintances of Hill or her adult children.
The complaint alleges she caused more than $3 million in FSA benefits to be awards with more than $2.5 million disbursed.
Investigators obtained bank records via subpoena that show after an electronic FSA disbursement and found the FSA funds were either withdrawn as cash at an ATM or were transferred to bank accounts allegedly owned and accessible by Hill.
Court documents released photos of what federal investigators believe is Hill depositing FSA refund checks and withdrawing funds from Hill’s account in cash.
Federal investigators executed a search warrant at Hill’s home in Detroit.
When agents interviewed Hill, she allegedly made statements to officials that lead them to believe to be related to her role as a ringleader of her alleged fraud scheme.
Hill allegedly told authorities that she “helps” people go to school to get FSA and get high school diplomas from Southeastern.
She said her adult children help her recruit people, and she requests and receives payment from the FSA recipients.
Hill faces a federal charge of wire fraud.