Federal officials say that Michael Gagliano, president of the Galiano Career Academy in Orlando, Florida, altered student records in order to receive federal funding. The Department of Education provided the school with $1.9 million in taxpayer money for student aid. The students who received that aid were not really eligible for it.
The school was first raided in 2010 by the feds, but it took three years for Gagliano to be charged in Orlando federal court with theft of government property, aggravated identity theft and obstructing a federal audit. Gagliano has pled guilty to all three charges.
Gagliano worked with a company owned by his wife, Columbus Academy, to provide students with diplomas. For a cost of just $125, students were granted diplomas, making them eligible for student aid. In order to prevent backlash from federal inspectors, Gagliano installed cameras and microphones in the school to monitor the feds.