Chinatown beauty school raided

The News Leader

May 29, 2010 12:55:07 PM PDT
A tiny beauty school in New York's Chinatown has been raided by federal agents after getting an outsized $4 million in government aid in as many years. Agents from the departments of education and labor seized boxes of documents Friday at the USA Beauty School.

The small business first came under scrutiny two years ago after authorities received an anonymous complaint about the fortune in federal aid.

According to court papers filed by the federal Education Department, an undercover FBI agent posing as a student was asked to falsify a tax return in order to boost the amount of federal aid the school would get.

The school's director of financial aid has refused comment.