Family indicted in scheme to get financial aid funds

Heather Rawlyk

Tuesday, June 8, 2004 | 10:01 a.m.

A Las Vegas woman, her four children and three grandchildren have been indicted by a federal grand jury in a $1 million financial-aid fraud scheme, U.S. Attorney Daniel G. Bogden said Monday.

The indictment alleges that from January 2000 to March 2004 the family obtained the names, addresses and Social Security numbers of other people and used the information to apply for federal student loans and grants from distance learning institutions, where students earn college credit from home through Internet-based courses.

The family allegedly obtained $1 million in federal student loans and grants from five states, including Nevada, Colorado, Texas, Arizona and Maryland, Bogden said.

In Nevada alone, the family received 76 federal grants and loans totaling more than $400,000 from the Community College of Southern Nevada and Truckee Meadows Community College in Reno, he said.

Ann Armstrong, 61; her children Anthony Armstrong, 38, Michelle Armstrong, 42, Royale Armstrong, 36, all of Las Vegas, Michael Armstrong, 26, of Austin, Texas; and Ann Armstrong's grandchildren, Yasmin Armstrong, 21, Jason Jones, 21, and Justin Jones, 21, also of Las Vegas, are charged in the 33-count indictment. The indictment includes one count of conspiracy and one count of financial aid fraud, Bogden said.

In addition, Ann Armstrong has been charged with five counts of wire fraud, 20 counts of mail fraud and one count of identity theft, he said.

Yasmin Armstrong, Michael Armstrong, Michelle Armstrong, Royale Armstrong and Jason Jones have each been charged with one count of identity theft.

An investigation into the family began after a financial aid officer at Truckee Meadows Community College reported the scheme to the U.S. Education Department inspector general after observing that a number of students were applying for financial aid using the same addresses and telephone numbers, Bogden said. The investigation led to the issuance of arrest warrants against the family members.

If convicted, the family members face up to five years in prison and a fine of up to $250,000 for the conspiracy and financial aid fraud charges, up to 20 years in prison and a fine of up to $250,000 for each of the mail fraud and wire fraud charges, and up to 15 years in prison and a $250,000 fine for each of the identity-theft charges, Bogden said.

Ann and Michelle Armstrong pleaded not guilty and are currently in custody, while Anthony, Royale and Yasmin Armstrong pleaded not guilty and were released on bond, Bogden said. Arrest warrants are pending for Jason and Justin Jones and Michael Armstrong, he said.