Five plead guilty in nursing diploma fraud scheme

Five people pleaded guilty for their role in a scheme that led to thousands of hopeful nurses across the country receiving fake diplomas and transcripts, prosecutors said Monday.

Krystal Lopez and Damian Lopez of Palm Beach County; Francois Legagneur of Nassau County, N.Y.; Reynoso Seide of Union County, N.J.; and Yelva Saint Preux of Suffolk County, N.Y., pled guilty to wire fraud conspiracy. They will be sentenced by U.S. District Judge Raag Singhal in federal district court in Fort Lauderdale on July 27. Each faces up to 20 years in federal prison.

At plea hearings Monday, Damian Lopez, Legagneur, Seide and Saint Preux admitted to recruiting people to provide them nursing credentials in order to work as registered, licensed practical, or vocational nurses.

The five defendants also admitted to working with Palm Beach School of Nursing to create and distribute fraudulent diplomas and transcripts representing that the aspiring nursing candidates had gone to the school and completed the necessary courses and clinicals to receive their nursing diplomas. Federal authorities shut down the Palm Beach School of Nursing, Siena College in Lauderhill and Sacred Heart International Institute in Fort Lauderdale in February after investigators uncovered an elaborate web of money wiring, recruiting, and criminal activity. More than 7,600 fake diplomas were sold by the three schools.

The aspiring nurses had not completed the courses and clinicals, admitted Krystal Lopez, who said that in her role as Palm Beach School of Nursing’s Finance Director, she processed applications for individuals who were issued fraudulent nursing school diplomas and transcripts. She said each student paid the school $15,000 for the documents.

All five defendants admitted to profitting from the fake diploma scheme.

Overall, more than 25 people have been charged for their alleged involvement in the scheme that federal prosecutors say endangered the public. After receiving their fake diplomas, the nurses were able to take national board exams and land healthcare jobs if they passed. The would-be nurses who purchased the documents used them to get their registered and practical nursing licenses in several states and get jobs with unknowing healthcare providers across the country.

“What is disturbing about this investigation is that there are over 7,600 people around the country with fraudulent nursing credentials who are potentially in critical health care roles treating patients,” FBI Miami Acting Special Agent in Charge Chad Yarbrough said in February. “Were it not for the diligence and hard work of the inves

tigators on this case, the extent of this fraud may not have been discovered.”

Oddly, about 2,800 people — or 37 percent of those who bought fake documents — passed the National Council Licensure Examination test, according to Omar Pérez Aybar, special agent in charge for the Miami region of HHS’ Office of Inspector General. He told The New York Times that a “significant number” went on to get their license and become employed at U.S. healthcare facilities. The demand for nurses is high with the country enduring a shortage not seen in decades The shortage was exacerbated by the pandemic.

Federal officials previously have said many of the nurses who received their diplomas may lose their certification but likely won’t be criminally charged.

The FBI began investigating the alleged diploma fraud after a confidential witness tipped them off, according to a criminal complaint affidavit.