The former owner of the Stenotype Institute of Jacksonville, Gloria Wiley, was sentenced last week 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.
Wiley pleaded guilty Nov.13.
The court also ordered Wiley to pay nearly $289,000 in restitution to former students of Stenotype Institute, the U.S. Department of Education and the U.S. Department of Veterans Affairs.
According to the final judgment signed by Senior U.S. District Judge Harvey Schlesinger, Wiley must pay up to 50 percent of her income, if she works in a federal prison industry, to the clerk of the U.S. District Court. After release, she is required to remit to the government $300 per month until the reimbursement is satisfied.
She could have received a maximum penalty of five years in federal prison and a fine of up to $250,000.
Wiley, 73, was the owner of Stenotype Institute of Jacksonville Inc., a Jacksonville-based stenography school that opened in 1940. It provided professional education to students pursuing stenography careers, including court reporting and medical transcription.
The business 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 expenses.
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, Wiley and her staff began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for personal use.
According to court documents, Wiley and the institute held about $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 has been paid.
The Stenotype Institute closed in March 2016, soon after an on-site program inspection by the U.S. Department of Education.
The 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 U.S. Attorney Laura Cofer Taylor.