Richmond Man Sentenced to 78 months for Student Aid Fraud

Stole identities of ‘straw students,’ causing victims to accrue tens of thousands in fraudulent loans

RICHMOND, Texas – A Richmond man is headed to federal prison after orchestrating a years-long scheme that defrauded the U.S. Department of Education out of hundreds of thousands of dollars in student financial aid — and left real victims buried in fraudulent student loan debt.

Emmanuel Olugbaike Finnih, 43, was sentenced Wednesday by U.S. District Judge Andrew Hanen to 78 months in federal prison, followed by three years of supervised release.

Scheme spanned years, targeted hundreds of victims

For approximately five years, Finnih submitted more than 100 fraudulent financial aid applications to the Department of Education using stolen identities of fake “straw students” at colleges and universities across Texas.

Finnih used victims’ personal identifying information to prepare, submit, and sign fraudulent financial aid applications and master promissory notes in their names. He also set up mailing addresses, phone numbers, and email accounts he controlled to intercept communications from the Department of Education and the schools.

He then collected financial aid refunds through electronic transfers, checks, and prepaid debit cards sent to addresses and bank accounts under his control.

Authorities also discovered Finnih possessed false identity documents — including temporary driver permits and identification cards — that he intended to unlawfully use or transfer as part of the scheme.

In a particularly calculated move, Finnih would often masculinize the names of female straw students while continuing to use their correct Social Security numbers and dates of birth. This allowed him to more easily pose as those students and keep the scheme going.

In at least one instance, Finnih called a local community college and attempted to have financial aid payments unfrozen after the school flagged fraudulent transcripts tied to one of the straw students.

Victims left with damaged credit, loan debt

The fraud had real consequences for real people. Some victims were left with tens of thousands of dollars in student loans fraudulently placed in their names, significantly damaging their credit and hindering their ability to enroll in legitimate educational programs.

As part of his guilty plea, Finnih admitted to repeatedly using the personal identifying information of two specific victims over several years to fraudulently obtain federal financial aid.

More than $900K disbursed from fraudulent applications

In total, Finnih submitted fraudulent aid applications seeking more than $1.3 million in grants and loans. Of that amount, $921,189.08 was actually disbursed.

Finnih — originally from Nigeria and a naturalized U.S. citizen — was also formerly an adjunct professor at Texas Southern University. He pleaded guilty March 20 to theft of government funds, fraud, unlawful use or transfer of identity documents, and aggravated identity theft.

Prosecutors, investigators respond

U.S. Attorney Aaron Reitz did not mince words in responding to the sentencing.

“Higher education costs are already skyrocketing out of control, and it’s scammers like Finnih who make it worse, more expensive, and financially damaging for everyone,” Reitz said. “This fraudster will now suffer the consequences of his manipulative, deceitful, un-American crimes.”

Acting Special Agent in Charge Scott Wingle of the U.S. Department of Education Office of Inspector General’s Central Regional Office also weighed in.

“I am proud of the work of OIG Special Agents and our law enforcement partners for shutting down another student aid fraud ring and holding Mr. Finnih accountable for his criminal actions,” Wingle said. “We will continue to aggressively pursue those who misappropriate education funds for their own selfish purposes. America’s students and taxpayers deserve nothing less.”

The Department of Education’s Office of Inspector General led the investigation with assistance from the Lone Star College Police Department, U.S. Marshals Service, and U.S. Postal Inspection Service. Assistant U.S. Attorney Brad R. Gray prosecuted the case.

Finnih was permitted to remain on bond and will voluntarily surrender to a Federal Bureau of Prisons facility to be determined.