A student who worked in the University's Office of the Registrar is being implicated in a federal crime for the fradulent use of alumni records.
The employee allegedly tapped into the University's records and used at least one alum's social security number to apply for an Ameritech calling card.
The University's Department of Public Safety confirmed that an investigation is underway.
Fraud is a federal offense, and an FBI official said the department had heard of the case, although he would not comment on an investigation.
Stacey Latocha, who graduated in August, said she was questioned yesterday by DPS Sgt. Kevin McNulty regarding a felony case. She said McNulty told her that a calling card with her name and social security number was found in a suspect's purse.
"A girl who worked in the registrar's office was taking social security numbers, birthdates and a mother's maiden name and apparently adding a fake address," Latocha said yesterday.
"(The student employee) was applying for credit cards and phone cards and sending them to a phony address," she said.
McNulty would not confirm the details of the investgation yesterday.
"We don't comment on open investigations," he said.
But McNulty added, "The registrar's office is not being investigated."
University Registrar Tom McElvain said he did not know how many student records from the office were used since further investigation is still pending.
"We're trying to confirm that," McElvain said. "We're in the process of trying to answer those questions."
Latocha said she discovered she had a bad credit rating last week, but was not aware of the misuse of records until yesterday. Latocha, who now lives in Virginia, said she is considering legal recourse against the University.
"Everyone who goes to school at Michigan puts their lives in the hands of the registrar," Latocha said.
DPS spokesperson Elizabeth Hall said an investigation is not being headed by DPS, so she could not elaborate on it.
"We're aware of an investigation, but because it is not ours we are unable to comment on it," Hall said.
Joan Lowenstein, an Ann Arbor lawyer, said improperly accessing a student's academic records is a federal violation under the Family, Education, Rights and Privacy Act.
"If there's a federal law involved, it has to be the FBI to investigate it," said Lowenstein, a former communication lecturer at the University. "If you violate FERPA, then it's a federal law (violation)."
FBI Special Agent Greg Stajkal, who works in the department's Ann Arbor office, said he is "aware of the case in the registrar's office," but he would not confirm whether the FBI is investigating the case.
Lowenstein said the case probably involved multiple state and federal violations of criminal and mail fraud.
"There are specific kinds of violations depending on how much money is involved," Lowenstein said. "They're really stealing money, but they used fraud to do that.
"Someone who did that and got caught would be looking at many years of prison," she said.
Associate Vice President for University Affairs Lisa Baker refused to comment last night on the investigation or the University's policies on student records.
Lowenstein said the University is responsible for protecting student academic records and can be held liable under FERPA if it acted negligently.
"The main purpose of FERPA is to make the University protect records," Lowenstein said. "If that is violated, federal money can be taken away from the University."
McElvain said the registrar's office interviews its employees and checks their references before hiring anyone.
"All University students have background checks done on them," McElvain said, adding that the checks are performed by the University's personnel office.
"There are very, very few students ever employed in the registrar's office," he said. "The same things would be asked of a student as of anyone."
Resolution Coordinator Mary Lou Antieau, who oversees the acministration of the Code, said the fraudulent behavior "would fall under the Code."
"We've never had a case like that under the Statement (of Student Rights and Responsibilities) or the Code," Antieau said.