HOUSTON – A 43-year-old man living in Richmond, TX will serve time in federal prison for orchestrating a years-long scheme involving fraudulent student financial aid applications and the misuse of victims’ identities.
Emmanuel Olugbaike Finnih is originally from Nigeria and later became a naturalized U.S. citizen. He was also formerly an adjunct professor at Texas Southern University.
Finnih pleaded guilty March 20 to theft of government funds, fraud, unlawful use or transfer of identity documents, and aggravated identity theft.
U.S. District Judge Andrew Hanen ordered Finnih to serve 78 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how Finnih used false identities, transcripts, UPS boxes, and bank accounts to carry out the scheme, leaving victims with student loan debt that damaged their credit and hindered…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.