Four charged with fraudulently getting $1.2 million in student loans

Four people, including a man from Aurora, have been indicted on charges of stealing $1.2 million in student loans.

They are Derrick King, 23, of Aurora; Melissa Renee Heggie, 29, of Grimesland; Marvin R. Heggie, 27, of Raleigh; and Travis S. Hunter, 28, of Grimesland. Melissa and Marvin Heggie are brother and sister.

A grand jury returned a 34-count indictment against them this week in federal court in Wilmington.

The indictment says that from June 2007 through March 2008, the four conspired to obtain $1.2 million in student loans from J.P. Morgan Chase Bank by submitting fraudulent documents.

According to the indictment, the fraud worked this way:

The Heggies recruited individuals to provide their Social Security cards and identification. Once the individuals supplied the documents, a student loan application would be submitted to the bank via the Internet. Chase Bank would approve the application and request further documents.

Melissa or Marvin would complete the paperwork with the individuals' correct names and Social Security number, but would falsify other information. Melissa or Marvin would sign the individuals' names verifying that the information on the application was true. They would then fax the loan application along with a copy of the Social Security card, driver's license, a fraudulent billing statement from East Carolina University, fraudulent W2 forms and other falsified documents to the bank in Indianapolis, Ind.

Within days a check would be mailed from the bank and arrive at one of the three addresses provided on the application.

Once Melissa and Marvin received the check, they would meet the individual at a check-cashing store to cash the check. The individuals would keep half the money and give the other half to Melissa or Marvin.

The checks ranged from $10,000 to $28,300.

Hunter and King were charged with conspiracy to commit mail and wire fraud.

Both Heggies' were indicted on counts of wire fraud and aiding and abetting in wire fraud.

If convicted, the four could be sentenced up to five years in prison for each charge.