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Former Stenotype Institute owner sentenced for student aid fraud

Gloria Wiley, 73, sentenced to year in prison

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JACKSONVILLE, Fla. – The former owner of the Stenotype Institute of Jacksonville was sentenced to prison and ordered to pay restitution for failing to refund federal student aid money, according to a release from the Department of Justice.

The court ordered Gloria Wiley, 73, to spend a year behind bars and pay over $288,000 in restitution to former students. She pleaded guilty on Nov. 13, 2018.

According to court documents, Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, living expenses, stipends and other fees. Excess funds drawn on behalf of students were required to be refunded to the Department of Education or to the student within 45 days.

Starting in June 2015, instead of refunding funds, Stenotype began tracking the amounts owed in a spreadsheet. Wiley continued to draw funds from the school for personal use.

In total, Wiley and Stenotype held about $290,000 in refunds due to the Department of Education and to former students. Stenotype ceased operations in March 2016.