Detroit woman accused of decade-long federal student aid fraud scheme
Michelle Denise Hill is charged with wire fraud for an alleged operation that stretched from July 2015 to July 2025 in Wayne County and beyong, according to a federal complaint. (WDIV)
DETROIT – A Detroit woman scheduled to appear in federal court this week is accused of orchestrating a decade-long scheme that used other people’s identities to obtain millions in federal student aid, then funneled much of that money to herself through bank accounts, debit cards, and Cash App transfers, according to a federal criminal complaint filed in Wayne County.
Michelle Denise Hill faces wire fraud charges for an alleged operation that ran from July 2015 to July 2025 in Wayne County and beyond.
Investigators say federal student aid fraud schemes often follow a familiar pattern: a ringleader recruits “straw” students, enrolls them in online courses, submits financial aid applications in their names, and then redirects refund money once tuition is paid.
The complaint identifies Hill as the “ringleader” and alleges that she submitted fraudulent Federal Student Aid claims for roughly 80 people, primarily involving Wayne County Community College in Detroit. The scheme allegedly resulted in over $3.2 million in benefits being awarded, with more than $2.5 million disbursed to date. The investigation began in 2022 after a school official noticed an unusual cluster of aid recipients listing the same Florida high school on their applications.
According to the complaint, investigators found repeated patterns across applications and accounts, including shared challenge-question answers, addresses, phone numbers, and personal references—often linked to Hill herself. A key piece of evidence cited is an internet address tied to Hill’s Detroit residence.
The complaint also alleges Hill controlled where refund money was sent after aid was approved, including through at least seven bank accounts she owned or controlled and mailed debit cards associated with student refunds. Investigators reported observing withdrawals and transfers after disbursements, sometimes supported by bank video footage.
During a search of Hill’s home in April 2023, agents reportedly found notebooks, loose papers, and electronic devices containing personal identifying information, logins, passwords, course schedules, and banking information for recipients. Hill allegedly admitted to helping people obtain aid and complete school-related tasks and told agents she kept other people’s debit cards because “people trust her more than they trust themselves.”
In an interview, Hill’s adult son reportedly told investigators that she helps people sign up for school to “get their money.” Federal agents also said seized devices contained photographs of IDs, debit cards, bank information, more than 100 pages of completed and signed FSA documents, and over 800 coursework files. Text messages recovered by investigators allegedly show recruitment efforts, exchanges of personal data, payment arrangements, and impersonation of students in communications with professors.
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