Cedar Rapids man gets prison time for student loan scheme - KWWL - Eastern Iowa Breaking News, Weather, Closings

Cedar Rapids man gets prison time for student loan scheme

Posted:

CEDAR RAPIDS (KWWL) -- A Cedar Rapids man that was part of a scheme to fraudulently obtain student loans will spend three years in prison for his role.

Cory Alan Bailey, 22, pleaded guilty in June 2010 to one count of mail fraud.  He admitted that he recruited others to sign up for classes at Kirkwood Community College and then created e-mail accounts for them.  Bailey and his co-schemers would then use those e-mail accounts to apply the others for federal financial aid, enroll them in classes and then arrange for the loan checks to be forwarded to post office boxes that were under control of him and the co-schemers.

In addition to the three years in prison, Bailey must pay back $5,854 to Kirkwood Community College and $133,066 to the United States Department of Education.  Bailey will also serve three years of supervised release after he's released from prison.  There is no parole in the federal system.

Bailey was released on the bond and will surrender to the Bureau of Prisons on a later date.

Powered by Frankly