INDIANAPOLIS (WISH) — A former Muncie woman has been sentenced to 30 months in federal prison for defrauding the U.S. Department of Education out of over $930,000 in federal financial aid, the U.S. Department of Justice said in a news release issued Tuesday.

Reina Isom, 47, of Gainesville, Florida, pleaded guilty to wire fraud and two counts of federal financial aid fraud, and she has been ordered to pay $348,148 in restitution.

Her scheme involved enrolling accomplices in online colleges and submitting fraudulent Free Application for Federal Student Aid (FAFSA) applications to obtain financial aid, which she then diverted to accounts she controlled.

Tom Wheeler, U.S. attorney for the Indianapolis-based Southern District of Indiana, said in a statement in the release, “When someone abuses these programs, they don’t just break the law — they potentially steal a life-changing opportunity from a first-generation student or someone from an underserved community.”

According to court documents, Isom’s fraudulent activities spanned nearly a decade while she was living in Muncie. She enrolled accomplices in low-cost, online colleges using their personal information and submitted FAFSA forms with false financial details to increase aid amounts. Isom ensured the “students” remained enrolled by completing coursework on their behalf, often submitting copied assignments from previous terms.

Over 50 fraudulent FAFSA applications were submitted for more than a dozen people, resulting in over $930,000 in aid being fraudulently dispersed.

Isom has a history of fraud, with prior convictions in 2004 for arson with intent to defraud and in 2011 for similar financial aid fraud activities.

The case was investigated by the Department of Education’s Office of Inspector General and prosecuted by U.S. attorneys Adam Eakman and Meredith Wood.

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