The owner of a Logan-based cosmetology school has been spared federal prison time and sentenced to home confinement for stealing federal student loan money.

During a sentencing hearing in U.S. District Court Monday, Gayle R. Jensen apologized to the court and said she accepted full responsibility for her actions and knows she will have to pay restitution.

"I'm very sorry," Jensen said.

A federal grand jury indicted Jensen in March of last year on two counts of embezzlement, stealing, fraud, false statements and forgery. According to charging documents, Jensen was a part owner and financial aid administrator for La Reine College of Beauty Culture when the school participated in federal student financial assistance programs. Students could receive federal Pell grants and low-interest Stafford loans under the federal Title IV funds program supervised by the U.S. Department of Education.

In accepting a plea deal, Jensen has admitted she failed to return federal funds to students who had withdrew from the school. Prosecutors also alleged Jensen requested and received federal funds for students who were not enrolled at the business.

On Monday, the government said it would not recommend prison time, given Jensen's lack of any previous criminal record. She faced up to a year in prison for the crime.

U.S. District Judge Dale Kimball sentenced Jensen to serve six months home confinement and ordered her to pay $25,000 in restitution to the U.S. Department of Education. While on home confinement, Jensen will be able to continue to work and care for her children.


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