Man took homeless people’s identities to steal $294K in financial aid in NC, feds say
A man in Eastern North Carolina is facing criminal charges after federal prosecutors said he orchestrated an elaborate scheme to defraud the U.S. Department of Education by filing dozens of fake applications for financial aid.
Duane Montrik Burton is accused of stealing $294,421 by submitting 28 financial aid applications on behalf of people he claimed attended Cape Fear Community College in Wilmington. In reality, prosecutors said, Burton was pocketing the refunds of individuals experiencing homelessness who “had no intention of attending CFCC.”
Burton was charged in the Eastern District of North Carolina on Feb. 15 with conspiring to defraud the federal government, aggravated identity theft and using a firearm in furtherance of a drug trafficking crime, court documents show.
He could not be reached for comment on Tuesday, Feb. 22.
A defense attorney representing Burton and a spokesperson for the U.S. Attorney’s Office did not immediately respond to McClatchy News’ request for comment.
According to charging documents, the alleged fraud spanned from 2014 to 2020. Prosecutors said Burton targeted people experiencing homelessness and offered them drugs in exchange for their personal information.
He then used their stolen identities to submit bogus applications for admission to Cape Fear Community College, which he bolstered with high school transcripts, GEDs and placement test scores that were either fabricated or obtained by fraudulent means, the government said.
Burton subsequently used the same information to apply for financial aid on their behalf using the Free Application for Federal Student Aid, or FAFSA, which is administered by the U.S. Department of Education, according to charging documents.
Financial aid is sent to the institution of higher education a student attends to cover tuition, fees and other expenses. But if the amount they receive exceeds the cost of tuition and fees, the student receives the balance in the form of a refund.
Prosecutors said Burton was after refund checks, which he reportedly cashed or had sent to bank accounts in other people’s names.
Burton sometimes had the checks sent to a P.O. box he rented in Jacksonville, North Carolina, according to charging documents. He also reportedly had other people cash checks payable in their name in exchange for drugs, or he had them take the GED exam posing as someone else, the government said.
Court documents don’t show whether there’s been a warrant issued for Burton’s arrest, but prosecutors have issued a notice of forfeiture on a 9 mm Diamondback handgun that was confiscated from his home in July 2020.
This story was originally published February 22, 2022 at 1:23 PM with the headline "Man took homeless people’s identities to steal $294K in financial aid in NC, feds say."
