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tate
office
Lawrence F. Alwin, CPA
State Auditor
September 29, 2003
Members of the Legislative Audit Committee:
The Public Integrity Unit of the Travis County District Attorney's Office
obtained three separate indictments on August 20, 2003, after the State
Auditor's Office Special Investigations Unit investigated allegations of
forged College Access Loan (CAL) applications and promissory notes.
The Higher Education Coordinating Board (Coordinating Board)
requested the investigation of these alleged offenses. The forged
applications and promissory notes led to the fraudulent disbursement of
more than $13,142 for tuition, fees, and personal expenses for Myrna
Chavarria, Onyekachi Ibekwe, and Johnny Villarreal.
Between December 1998 and May 1999, Myrna Chavarria, a former
student of the University of the Incarnate Word, allegedly forged the
signature of a friend's sister on CAL applications and promissory notes.
A Special Investigations Unit Report Regarding
College Access Loans
CAL is the acronym for College Access Loans. The
CAL program is funded through the Hinson-Hazelwood
college student loan program and is administered by
the Higher Education Coordinating Board. Students
apply for this aid through the financial aid office of
the college they plan to attend. Promissory notes
require a co-signer, and the co-signer's credit
worthiness is checked. Due to similar cases already
investigated by the Special Investigations Unit of the
State Auditor's Office, the Coordinating Board now
contacts co-signers to verify their signatures and the
loan amounts.
She then submitted the forged CAL applications and
promissory notes to the Coordinating Board, which resulted in the disbursement of $3,317. Myrna Chavarria faces one count of
aggregated securing execution of a document by deception, one count of aggregated theft, and two counts of forgery.
Between October 1999 and February 2000, Onyekachi Ibekwe, a former student of Southern Methodist University, allegedly
forged the signature of an acquaintance on CAL applications. He then submitted the forged CAL applications to the Coordinating
Board, which resulted in the disbursement of $5,000. Onyekachi Ibekwe faces one count of securing execution of a document by
deception, one count of theft, and two counts of forgery.
In May 2000, Johnny Villarreal, a former student of The University of
Texas at San Antonio, allegedly forged the signature of his uncle on a
CAL application. He then submitted the forged CAL application to the
Coordinating Board, which resulted in the disbursement of more than
$4,825. Johnny Villarreal faces one count of securing execution of a
document by deception, one count of aggregated theft, and one count of
forgery.
The offenses discussed above are all state jail felony charges. State jail
felonies carry a maximum penalty of two years in a state jail and a
$10,000 fine.
If you have any questions, please contact Harold Burns or John Weber,
Special Investigations Unit, at (512) 936-9500.
Sincerely,
Lawrence F. Alwin, CPA
State Auditor
tgc
cc: Dr. Don W. Brown, Commissioner, Higher Education Coordinating Board
The Honorable Ronnie Earle, Travis County District Attorney
SAO Report No. 04-003
Robert E. Johnson Building
1501 North Congress Avenue
Austin, Texas 78701
P.O. Box 12067
Austin, Texas 78711-2067
Phone: (512) 936-9500
Fax: (512) 936-9400
I t rr et: www.sao.state.tx.us
The Special Investigations Unit investigates reports of
illegal activity involving state agencies and
universities.
Texas Government Code, Section 321.022, requires
state agencies and universities to report suspected
fraud or unlawful conduct to the State Auditor's
Office if there are facts that point to fraud or
unlawful conduct.
To report suspected illegal activity, call 1-800-TX-
AUDIT (1-800-892-8348), send a fax to (512) 936-9400,
visit www. sao. state. tx. us, or mail information to the
State Auditor's Office, Attn: SIU, P.O. Box 12067,
Austin, Texas 78711.
