Central Point woman charged with student loan fraud
Nov. 18—A Central Point woman faces a string of federal charges accusing her of defrauding Rogue Community College and two other Oregon higher education institutions as part of a federal student aid fraud scheme valued at more than $36,000.
Cynthia Kay Pickering, 55, was arrested Tuesday on nine counts of wire fraud, aggravated identity theft and student aid fraud alleging she fraudulently applied for federal student aid by enrolling in online courses at RCC, Eastern Oregon University and Western Oregon University under her deceased husband's name, according to a grand jury indictment unsealed Thursday in U.S. District Court in Medford.
Pickering, also known as Cynthia Kay Smolen, allegedly enrolled as her husband at Eastern Oregon University Sept. 28, 2017, according to the indictment.
Less than two weeks later, federal prosecutors allege Pickering used her deceased husband's name, date of birth and social security number Oct. 11, 2017, to enroll at RCC and again used her husband's identity Aug. 8, 2018, to enroll at Western Oregon University.
Eastern Oregon University awarded Pickering $15,091 in federal student aid, RCC awarded Pickering $7,898 in federal student aid and Western Oregon University awarded $13,352 in federal student aid.
Federal prosecutors allege she participated in the online classes pretending to be her former spouse and "did what was necessary to pass first term courses" at each of the three schools.
The scheme allegedly lasted between September 2017 and April 2019, according to a release from the U.S. Attorney's Office.
After passing, she would then collect the funds for the year. Deducting tuition costs and fees, prosecutors say a combined $17,839.79 was deposited into Pickering's checking account.
The U.S. Department of Education requires federal student aid only be used by the named student beneficiary for educational purposes such as books and school supplies.
According to the U.S. Attorney's Office, wire fraud is punishable by up to 20 years in federal prison, student aid fraud is punishable by up to five years and aggravated identity theft is punishable by up to two years in prison.
Pickering entered not guilty pleas to all nine of the charges at her initial court appearance Wednesday in Medford. She was released from jail Wednesday as part of a pretrial release agreement.
Jackson County Circuit Court records show Pickering has a 2010 identity theft conviction and a 2011 tampering with drug records conviction.
Reach web editor Nick Morgan at 541-776-4471 or nmorgan@rosebudmedia.com. Follow him on Twitter @MTwebeditor.
