Angela Kathryn Mirabella, owner of a Huntington Beach-based company, was sentenced to five years of formal probation and one year in jail for identity theft linked to an alleged $6 million nationwide student loan fraud scheme.
Mirabella, 50, was convicted on one felony count of identity theft on September 3. During the trial, 24 other felony counts were dismissed, and jurors deadlocked on 62 additional counts, including conspiracy, fraud, grand theft, and money laundering. Orange County Superior Court Judge Richard King dismissed charges against co-defendant Paulina Francine Pacheco, 36, who was accused of identity theft and fraud but was later cleared.
The scheme targeted about 19,000 student loan borrowers nationwide, including 3,000 in California, between 2017 and 2020. Mirabella’s company falsely claimed to help borrowers obtain loan forgiveness by impersonating the Department of Education. Victims were misled into providing personal information, which was used without consent to alter loan terms or open credit accounts fraudulently.
Prosecutors revealed that the company collected millions of dollars from struggling borrowers but failed to deliver legitimate loan adjustments, instead pocketing the money. The fraudulent operation was uncovered after loan holders reported suspicious activity and default rates soared.
Co-defendants Cesar Sandoval-Vilchis, Stephen Allen Gamboa, and Matthew Bruce Walsh have pleaded guilty and await sentencing. Charges against two others were dismissed.
Mirabella’s attorney argued her client intended to assist borrowers through a complicated loan forgiveness process, claiming the business had “growing pains” but no criminal intent. Nonetheless, the court sentenced Mirabella, who must report to jail by June 16, 2026.
