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Woman pretended to be native American while illegally receiving $125,000 in student loan fraud scheme

By Eric Sterling
Published in Financial Planning
March 21, 2023
1 min read
Woman pretended to be native American while illegally receiving $125,000 in student loan fraud scheme

It’s not uncommon for people to pretend to be someone they’re not. However, what happens when a person’s lies end up stealing from others? This seems to be the case for Rachel Dolezal, who pretended to be a native American in order to receive $125,000 in student loan funds. Dolezal, who used to lead the National Association for the Advancement of Colored People (NAACP), reportedly committed loan fraud by falsely stating that she was a member of several tribes. In reality, she has no native American ancestry.

The fraud scheme started in 2015, when Dolezal applied for various scholarships meant for minorities, including a scholarship from the Fund for Education and Cultural Studies. She was able to get away with it by falsely identifying herself as a victim of domestic abuse and a single mother with no financial support.

What’s even more concerning is that the loans were meant to help deserving minority students. Instead, Dolezal took the opportunity from the people who really needed it.

In the end, she pleaded guilty to two counts of first-degree theft by welfare fraud, perjury in the second degree, and making false verification. This only means that she will have to pay fines and serve time in prison if she violates the terms of her probation.

This is one of the most bizarre and fascinating cases of fraud we have ever heard. There are lessons to be learned from this story — one of which is that it is never okay to steal from others, no matter how noble the cause. Moreover, it shows that lying can have severe consequences and it’s always better to be honest even if the truth is difficult to admit.


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Eric Sterling

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