A 60-year-old grandmother from Fayetteville has been sentenced to federal prison after masterminding what authorities described as the largest student financial aid fraud scheme in North Carolina history.
Cynthia Denise Melvin was sentenced to five years in prison by Chief U.S. District Judge Richard E. Myers II following a sweeping federal investigation into a long-running scheme that used so-called “straw students” to steal millions from the U.S. Department of Education.
According to investigators, Melvin operated the fraud between 2016 and 2023, recruiting approximately 80 individuals to pose as college students. Using their personal information, she applied for federal financial aid at several North Carolina schools, including Wake Technical Community College, Cape Fear Community College, and Fayetteville Technical Community College.
Authorities said Melvin went beyond submitting applications. She allegedly impersonated the students online, logging into school portals, falsifying class participation, and completing coursework to ensure the institutions released refund checks meant for educational expenses.
Federal investigators determined the scheme generated more than $5 million in financial aid awards, with over $3.5 million ultimately paid out. During a search of Melvin’s home, agents with the Department of Education’s Office of Inspector General uncovered extensive evidence, including lists of student usernames, passwords, and bank routing information used to divert taxpayer funds.
U.S. Attorney W. Ellis Boyle criticized Melvin’s actions during sentencing, stating that she should have been focused on her family rather than running a criminal enterprise. He noted that instead, she will now spend years separated from her grandchildren.
In addition to her 60-month prison sentence, Melvin was ordered to pay $3,641,473 in restitution.
Melvin pleaded guilty to the charges in February 2025. Federal officials said the case represents a significant step in ongoing efforts to dismantle fraud rings that exploit student aid programs intended to help legitimate students pursue higher education.
