Jacksonville, Florida – U.S. District Judge Harvey S. Schlesinger has sentenced Gloria Wiley (73, Danville, KY) to one year and one day in federal prison for failing to refund federal student aid money, commonly referred to as Stafford Loans and Pell Grants. The court also ordered Wiley to pay $288,875.92 in restitution to former students of Stenotype Institute, the U.S. Department of Education, and the U.S. Department of Veterans Affairs. Wiley had pleaded guilty on November 13, 2018. 

According to court documents, Wiley was the owner of Stenotype Institute of Jacksonville, Inc.—a Jacksonville-based stenography school that provided professional education to individuals pursuing stenography careers, including court reporting and medical transcription. Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, fees, and living expense stipends. Excess funds drawn on behalf of students were required to be refunded to the U.S. Department of Education or to the student within 45 days.

Beginning in June 2015, instead of refunding the excess funds, Stenotype began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for personal use. In total, Wiley and Stenotype held approximately $290,000 in refunds due to the U.S. Department of Education and to former students, and $9,000 due to the Department of Veterans Affairs, none of which have ever been paid. Stenotype ceased operations in March 2016, shortly after a program review by the U.S. Department of Education.

This case was investigated by the U.S. Department of Education – Office of Inspector General and the U.S. Department of Veterans Affairs – Office of Inspector General. It was prosecuted by Assistant United States Laura Cofer Taylor.