ATLANTA – De’reek Banks has been sentenced for operating a scheme that caused approximately $48,000,000 in outstanding federal student loans to be fraudulently discharged by exploiting a program intended for disabled military veterans. Banks illegally pocketed about $891,000 in payments from more than 500 student loan borrowers. Many of these borrowers mistakenly believed that they had paid Banks for legitimate student debt relief services.
“This defendant brazenly stole funds from innocent student loan borrowers by exploiting a financial aid program intended to assist military vets who sacrificed their health for the security of our country,” said U.S. Attorney Ryan K. Buchanan. “He tricked borrowers into believing that he could legitimately obtain federal student loan discharges for them while attempting to defraud the U.S. government of almost 50 million dollars.”
“The sentencing demonstrates the commitment of the US Postal Inspection Service to bring to justice fraudsters who seek to exploit victims and federal programs for their own personal gain,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “We are proud to work with our law enforcement partners to unravel and stop this type of fraudulent scheme.”
“I’m proud of the OIG Special Agents and our law enforcement colleagues whose efforts brought about this action,” said Reginald J. France, Special Agent in Charge of the U.S. Department of Education Office of Inspector…
