A New York nurse who scammed a federal loan forgiveness program for people living with disabilities out of $11.2 million was sentenced to five years in prison on Wednesday.
Federal Judge Cathy Seibel handed the sentence down to Catherine Seemer, 44, of Elmsford, at a White Plains federal court hearing in addition to a term of three years post-release supervision.
Seemer carried out the fraud by submitting 125 fraudulent applications under the federal Total and Permanent Disability student loan discharge program by falsely impersonating 12 different doctors between June 2017 and March 2022, according to court records.
The loan forgiveness program operated by the Department of Education discharges student loan obligations of people living with permanent disabilities, including military veterans.
Seemer, a nurse since 2017 who was arrested in June 2022, represented to borrowers that she was responsible for identifying and securing financial aid, grants, and other forms of loan relief, misleading many to believe they were eligible through their support of elderly, ailing, or family members with disabilities, according to court records. She then fraudulently submitted applications on their behalf — forging signatures and medical license numbers to falsely certify different diagnoses — charging a percentage of the total loan amount discharged.
The feds said Seemer pocketed more than $635,000 in fees through the scam, which she agreed to pay back in restitution when she pleaded guilty to federal student financial aid fraud and aggravated identity theft in March 2024.
Before the sentencing, prosecutors wrote to Seibel that Seemer’s fraud “was not an isolated, poor decision in a time of need” but one she carried out over five years that would derail her victims down the line.
“Years ago, each of these victims were led to believe that they had lawfully rid themselves of tens or hundreds of thousands of dollars’ worth of student debt. Victims have inevitably made financial decisions in their lives in the interim — be it a vacation, the purchase of a home, or similar expenditures,” Assistant U.S. Attorney Qais Ghafary wrote.
“They did so based on the false sense of security that they were debt free and could afford it. The eventual reinstatement of $11.2 million worth of student loans will have a seismic effect on the financial well-being of these victims.”
In her sentencing submission, Seemer’s attorneys said she messed up but that her life had been marked by her “dedication to her family and her great compassion for others,” and detailed trauma she suffered in her childhood. They said she never intended harm towards the borrowers she lied to, but the government itself.
“Although she committed fraud, Ms. Seemer intended to cause harm to the US Government and not those individual applicants,” Seemer’s lawyers wrote.
“She solely stands ready to make those individuals whole, however ironically, her intended target … the Government, is already or will be made whole.”