A former Tennessee State University employee was sentenced to 32 months in federal prison on Friday for fraudulently receiving and embezzling more than $ 84,500 in student loan repayments.
Renauld Clayton, 32, of Nashville, was charged in May 2019 with student loan fraud, wire fraud and aggravated identity theft, according to U.S. Attorney Don Cochran for the Central District of Tennessee.
Clayton pleaded guilty in February and admitted that in 2014-2015, while employed in the TSU admissions office, he obtained the personal identifying information of TSU students and others and asked for student loans on their behalf.
When the funds were received, Clayton embezzled the money for his own use and that of others and deposited over $ 60,000 of the funds into bank accounts he controlled.
U.S. District Judge Eli J. Richardson also ordered Clayton to pay $ 84,506.00 in restitution, prosecutors said.
This investigation was conducted by the US Department of Education – Office of the Inspector General and the US Secret Service, following an internal audit by TSU. Assistant US prosecutors Sara Beth Myers and Kathryn W. Booth are continuing the case.