Posted: 05/02/2011 02:41:52 PM PDT

Updated: 05/02/2011 05:40:54 PM PDT

http://www.mercurynews.com/breaking-news/ci_17976435?nclick_check=1

PLEASANTON -- The president of Tri-Valley University, which has been called a "sham" by federal prosecutors, was arrested Monday after being indicted on 33 counts in what authorities call a student visa fraud scheme.

Susan Xiao-Ping Su, 41, of Pleasanton, was arrested Monday morning in Pleasanton.

Su was indicted April 28 by a federal grand jury on counts of conspiracy to commit visa fraud, wire fraud, money laundering, alien harboring and making false statements, among other violations.

According to the indictment, Su is accused of engaging in a two-year scheme to defraud the Department of Homeland Security by submitting fraudulent documents for Tri-Valley University's applicants to admit foreign students on student visas in exchange for "tuition and fees." Tuition was $2,700 a semester at the school, which operated for three years.

The indictment also says that Su engaged in multiple money laundering transactions totaling over $3.2 million using the proceeds derived from the visa fraud scheme.

"Today's indictment alleges a visa fraud scheme through which the defendant accrued millions of dollars and took advantage of others' eagerness to come to the United States," U.S. Attorney Melinda Haag said in a statement.

In January, federal agents executed search warrants at Su's home and at Tri-Valley University's Pleasanton campus on Boulder Court, and announced that proceedings had begun to seek the forfeiture of Su's property in Pleasanton and Livermore.

At that time, the university reported it had 1,555 international students, of whom 140 had applied for visas through the school.

The school was mostly an online university with foreign students living in various parts of the country. About 95 percent of the foreign students were from India.

The federal inquiry sparked fear among many students who worried about their legal status in the United States.

News of the school's suspected fraud scheme and that some of its students, whose visa status was in question, were required to wear monitoring bracelets was reported in India and sparked protests there.

Shah Peerally, a Newark-based immigration attorney, said the news of Su's arrest and the federal grand jury indictment was welcomed.

Peerally said he received about 500 phone calls to his office after news of the federal investigation became public.

Students were worried about what would happen to them after the university closed, he said.

Peerally said he hopes the truth will come out and justice will be served for the students.

"What (Su) has done was totally wrong," he said. "She took advantage of so many students."

He said many of his clients were able to resolve their immigration issues and return to study in the United States.

The university ceased operations March 17, according a statement on the university's website. The statement also told former students to move on and not wait for a reopening:

"The final message from Ms. Su as TVU's president is an encouragement to you all to move on! Let me give the closure by reminding and ensuring you all that: After the darkest moment is the dawn -- a new day with the sun rising and shining."