Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Nov 19, 2012

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The FBI has caught and charged two scam artist brothers from California in a crime to defraud banks out of student loans.

The two brothers, Mordechay Altit from Elk Grove and Shay Din Altit of Los Angeles, conspired to falsely represent themselves to multiple banks in order to obtain student loans.

According to the FBI’s press release the two brothers managed to fraudulently borrow $200,000 worth of student financing from several banks by submitting falsified applications. Their applications included the typical information for receiving student loans such as social security numbers, income levels, names and various Universities or colleges where they stated they would be attending. Immediately upon receiving some of the money from a few banks, Mordechay Altit wrote checks worth $19,000 to his brother Shay Din Altit.

Back in October, the FBI concluded its investigation and arrested Shay Din Altit in Los Angeles, CA. On Nov. 16, Shay Din Altit faced arraignment. Ironically, the other brother, Mordechay Altit was arrested and put into federal custody on unrelated charges. He is not yet scheduled to stand before a judge and face arraignment.

Mordechay Altit faces up to 22 years in prison and a fine of $250,000. His brother, Shay Din Altit would face up to 10 years and an equal fine if he is convicted in court. The sentencing for the two scam artist brothers would be dependent on Federal Sentencing Guidelines and any applicable statutory factors. The case is going to be prosecuted by Assistant United States Attorney Lee S. Bickley.

The Internal Revenue Service Criminal Investigation division and the FBI jointly investigated the fraud allegations before making arrests.

The FBI is charged with the pursuit and investigation of financial crimes including checking account related crimes. While student loan fraud is a criminal offense, the FBI investigated the matter due to the fraudulent use of checks that Mordechay Altit paid to his brother Shay Din Altit, which was a federal offense. Despite the charges, both of the scam artist brothers are considered innocent until proven guilty in a court of law.