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LITHONIA, Ga. – A Georgia man will spend years in jail for a fraud scheme that worn out round $48 million in federal pupil loans for a whole bunch of debtors that he claimed have been disabled navy veterans, officers say.

Officers say 41-year-old De’reek Banks of Lithonia, Georgia operated a enterprise that provided to assist pupil mortgage debtors get discharges for federal pupil loans for a price.

Based on the U.S. Lawyer’s Workplace, Banks instructed prospects that particular applications existed for authorizing the discharge of debtors loans, however as an alternative he was mendacity to the Federal Scholar Assist workplace of the U.S. Division of Training.

Banks was accused of fabricating a whole bunch of letters from the Division of Veterans Affairs claiming that the debtors have been navy veterans who have been eligible for pupil mortgage discharges resulting from a complete or everlasting incapacity.

“This defendant openly stole funds from harmless pupil mortgage debtors by exploiting a monetary support program supposed to help navy vets who sacrificed their well being for the safety of our nation,” mentioned U.S. Lawyer Ryan Ok. Buchanan. “He tricked debtors into believing that he might legitimately get hold of federal pupil mortgage discharges for them whereas trying to defraud the U.S. authorities of just about $50 million.”

In whole, authorities say Banks illegally took greater than $890,000 from greater than 500 pupil mortgage debtors and helped fraudulently discharge round $48 million in pupil loans.

On Monday, Banks pleaded responsible to theft of presidency property and was sentenced to 6 years in jail adopted by three years of supervised launch. He was additionally ordered to pay restitution of over $900,000.

“The sentencing demonstrates the dedication of the US Postal Inspection Service to deliver to justice fraudsters who search to use victims and federal applications for their very own private acquire,” mentioned Tommy D. Coke, Inspector in Cost of the Atlanta Division.  “We’re proud to work with our regulation enforcement companions to unravel and cease such a fraudulent scheme.”