March 22, 2004

A federal grand jury indicted five debt collectors on 37 counts of fraud

5 indicted in student loan fraud

Federal authorities say Robert Hazlett, 43, president of Valley Acceptance Corp., conspired with four employees to submit false applications for student loans in 1999 and 2000.

The loans generated $1 million in commissions for the employees, who allegedly reported the loans were in good standing so that the bogus applicants could qualify for even more loans.

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Posted by Christine at March 22, 2004 12:04 PM
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