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Cranberry woman gets prison for fraud

Student loans not used for school

PITTSBURGH — A Cranberry Township woman who fraudulently obtained $729,000 in student loans will spend 15 months in prison.

According to federal court records, Meredith Shuster, 36, claimed she spent the bulk of the money on medical procedures and plastic surgery because she suffers from a mental health condition called “body dysmorphic disorder.”

“Her mental and emotional conditions are present to an unusual degree and distinguish this case from similar offenses,” wrote Shuster’s attorney Linda E.J. Cohn, an assistant federal public defender.

But U.S. Attorney David J. Hickton, who prosecuted the case, wrote in court records, “The vast majority of the fraud proceeds were spent by the defendant on living expenses, extravagant purchases of electronics, clothing and furniture, and extensive travel to resorts in all parts of the country ... Only a fraction of the funds were spent on medical procedures.”

According to the court records, the prosecution alleged Shuster made trips to Virginia, Florida, Arizona, and St. Thomas in the U.S. Virgin Islands.

And among the merchants where Shuster reportedly spent money were appliance stores, Crate and Barrel, IKEA, and Billie Jeans.

Court records indicate Shuster, who has a master’s degree, got the money in private lender student loans by using the identities and financial information of her parents.

She acquired and spent the money during the years 2004 to 2011, according to court records.

In April, Shuster pleaded guilty to bank fraud and mail fraud.

U.S. District Judge Mark R. Hornak on Monday sentenced Shuster to 15 months imprisonment and 5 years of supervised release.

She also was ordered to pay $632,613 in restitution.

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