Authorities investigating student aid fraud at ASU


MONTGOMERY, Ala. (AP) — Officials at Alabama State University say the state bureau of investigation is probing student aid fraud at the school.

The Montgomery Advertiser reports ( the fraud was exposed last January and was reported to the ABI by campus police. Vice President of business and finance Freddie Gallot told the newspaper about $50,000 has gone missing since then.

Authorities say the university was supposed to hold financial aid money for a designated time period before refunding it to students. The money went missing from the account it was being held in. Officials say students have received refunds at the school's expense, and fraud insurance will likely cover the losses.

Officials say they are unsure of who is responsible for the theft, or whether the suspect is an employee of the university.


Information from: Montgomery Advertiser,

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