A New York nurse practitioner found herself sentenced to a five-year prison term for a multi-million dollar disability loan fraud, as announced by the United States Attorney for the Southern District of New York, Danielle R. Sassoon. Catherine Seemer, 44, was convicted of swindling $11.2 million by using stolen identities of doctors to fake permanent disabilities, thus fraudulently discharging loans meant for those genuinely in need, including service veterans.

Seemer's criminal activities spanned from June 2017 through March 2022, wherein she deceived over 125 borrowers into thinking they were eligible for student loan relief. With their personal information in hand, Seemer submitted fraudulent applications stating non-existent physical and mental disabilities, and exploited the identities, medical license numbers, and forged signatures of more than a dozen doctors to fake medical diagnoses and disability certifications. This operation falsely cleared roughly $11.2 million worth of loans, as stated by federal authorities.

In a statement obtained by the Justice Department, U.S. Attorney Danielle R. Sassoon said, "Today, Catherine Seemer has been held accountable for defrauding a federal loan forgiveness program created to help ease the financial burden of those who suffer from permanent physical or mental disabilities, including military veterans who endure service-related disabilities." She emphasizes the commitment to eradicating fraud and abuse of government-funded programs.

Besides her imprisonment, Seemer faced three years of supervised release, and must pay restitution amounting to $635,352. The case, showcasing the coordinated efforts of the FBI and the U.S. Department of Education, Office of Inspector General, was managed by Assistant U.S. Attorney Qais Ghafary.