November 27, 1998
Beauty-School Owner Guilty of Defrauding Education Department
Frank Cefaratti, the owner of the Franklin Beauty School, in Elizabeth, N.J., has pleaded guilty to charges that he defrauded the federal government in an effort to keep the school's loan-default rate low.
A federal grand jury indicted Mr. Cefaratti in September on 27 counts of mail fraud, wire fraud, student-financial-aid fraud, money laundering, and obstruction of justice. The grand jury charged that he had
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