Student Aid Fraud Ring Busted

Federal officials have busted a major student aid fraud ring in California. 21 Californians have been charged with stealing federal financial aid money.

A loosely affiliated group of criminals targeted mostly online programs at community colleges and for-profit schools, obtaining more than $770,000 in federal student aid. Seven fraud schemes were place to collect federal money, operating at 15 different institutions.

The accused thieves would either sign up in their own name or recruit "straw students" -- who had no intention of ever attending college -- to collect the student aid money. One ringleader allegedly recruited more than 50 straw students, including prison inmates, to fraudulently receive $200,000 in student aid.