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Former Tennessee State University Employee Pleads Guilty In Federal Student Loan Fraud Scheme

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The following press release was published by the U.S. Secret Service on Feb. 13, 2020. It is reproduced in full below.

Clayton was indicted in May 2019 after an investigation determined that he had fraudulently received and misappropriated $84,500 in student loan payments.

During the plea hearing, Clayton admitted that during 2014-2015, while employed in the admissions office of Tennessee State University (TSU), he obtained the personal identifying information of TSU students and others and applied for student loans in their names. When the funds were received, Clayton diverted the money to his personal bank account, depositing more than $60,000 during this time for his personal use.

Clayton faces a mandatory minimum of two years in prison and up to 20 years when he is sentenced on June 19, 2020.

This investigation was conducted by the U.S. Department of Education and the U.S. Secret Service, following an internal audit by TSU. Assistant U.S. Attorneys Sara Beth Myers and Kathryn W. Booth are prosecuting the case.

-- Middle District of Tennessee

Source: U.S. Secret Service

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