U.S. Attorney Costs Nurse Practitioner In $10.5 Million Incapacity Bank loan Fraud Plan | USAO-SDNY

Damian Williams, the United States Lawyer for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Workplace of the Federal Bureau of Investigation (“FBI”), and Terry Harris, Exclusive Agent-in-Cost of the Japanese Regional Workplace of the U.S. Office of Schooling Business of Inspector General (“ED-OIG”), announced now the unsealing of a felony complaint charging CATHERINE SEEMER with wire fraud, federal financial aid fraud, and aggravated identification theft in relationship with a plan that resulted in the fraudulent discharge of about $10.5 million value of college student loans on the foundation of falsified medical certifications of everlasting disabilities.  SEEMER was arrested this morning and will be introduced ahead of United States Justice of the peace Choose Andrew E. Krause.

U.S. Attorney Damian Williams reported:  “The Total and Lasting Incapacity Discharge System is created to help relieve the monetary stress of those who put up with from permanent physical or mental disabilities, which includes armed forces veterans who endure support-linked disabilities, by relieving them of their scholar mortgage obligations.  As alleged, the defendant defrauded this program for her very own benefit.  She stole the identities of much more than a dozen health care medical doctors and falsified the disabilities of a lot more than 100 borrowers in purchase to income from the multi-year plan, which resulted in the fraudulent discharge of around $10.5 million in financial loans.  This Workplace, along with our legislation enforcement associates, will proceed to vigilantly safeguard the integrity of important applications that exist to assist these who are most in need to have.” 

FBI Assistant Director-in-Cost Michael J. Driscoll reported:  “As alleged, Ms. Seemer fraudulently orchestrated the discharge of scholar financial loans in extra of $10 million on behalf of much more than 100 debtors she led to believe that have been qualified for different sorts of pupil-bank loan relief.  She eventually reaped more than $1 million in sick-gotten gains by charging debtors fees in trade for her “services.”  The motion we have taken today is still yet another illustration of the FBI’s commitment to defending federal government programs from fraudsters who find to undermine them for their very own selfish purposes.”

ED-OIG Special Agent-in-Charge Terry Harris said:  “Tracking down those people who cheat the Federal university student aid applications is a priority of our workplace.  The OIG is fully commited to combating college student assist fraud in all its sorts and we will carry on to go after anybody who participates in these kinds of crimes.”

As alleged in the Grievance filed today in White Plains federal court docket:[1]

From June 2017 by March 2022, SEEMER orchestrated a plan to induce the fraudulent discharge of millions of dollars’ worthy of of college student financial loans for debtors who did not qualify for aid underneath the federal Full and Permanent Incapacity Discharge Application and its private analogue.  As portion of the plan, SEEMER deceived over 100 debtors into believing they capable for various varieties of pupil bank loan aid and charged them fees—often between 10% and 20% of the mortgage amount—to aid their loan discharge process.  She then used the personal determining info of the unsuspecting borrowers to submit fraudulent apps for scholar mortgage discharge on the basis of non-existent long term physical and mental disabilities.  In help of these purposes, SEEMER employed the stolen identities, health care license figures, and cast signatures of over a dozen health-related health professionals to falsify health care diagnoses and incapacity certifications.  The scheme resulted in the wrongful discharge of about about $10.5 million in financial loans less than the disability-primarily based aid programs.  It is approximated that SEEMER earned at least somewhere around $1 million as a final result of the plan.   

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CATHERINE SEEMER, 42, of Elmsford, New York, is charged with one particular count of wire fraud, which carries a maximum sentence of 20 a long time in jail one rely of federal financial help fraud, which carries a utmost sentence of five decades in prison and just one rely of aggravated id theft, which carries a mandatory consecutive sentence of two years in prison.  

The highest possible sentences in this scenario are approved by Congress and are offered listed here for informational needs only, as any sentencing of the defendant will be established by a judge.

Mr. Williams praised the fantastic investigative perform of the Federal Bureau of Investigation and the U.S. Section of Training, Business of Inspector General.  Mr. Williams mentioned that the investigation is ongoing.

The circumstance is currently being prosecuted by the Office’s White Plains Division.  Assistant U.S. Lawyer Qais Ghafary is in charge of the prosecution.

The costs contained in the Grievance are merely accusations, and the defendant is presumed innocent until and until finally established responsible.

 


[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and each and every fact described therein ought to be dealt with as an allegation.