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Agents raid Valley beauty school

A beautiful day in Scottsboro turned out to be a little less glamorous for the Gaither and Company Beauty College.

One student said she was in the middle of shampooing someone's hair when law enforcement barged in and served a search warrant. 

"A frightening sight to see all these cars and suv's coming over here this morning and blocking everything off," says neighboring worker Cheryl Bankert.

Bankert watched from next-door to the building that law enforcement raided early Wednesday morning.

She watched people wearing guns and bullet proof vests wondering what happened.

"It really scared me because I didn't know what was going on over there," Bankert says.

What was going on was the U.S. Department of Education's Office of Inspector Generals serving a search warrant for a pell grant fraud.

Bankert watched someone from the store come outside with officers.

"She said I'm in trouble now and she opened the side of her van, the police officer looked inside of her van she shut the door and went back inside of the beauty shop."

Bankert sat, then turned to her co-worker and said something has gone wrong.

"All we know is that we saw a lot of cars and trucks and men coming in with federal agents on their back."

WAFF 48 News is told the owner of the college is a resident of Marshall County.

The Marshall County Drug Task force has searched the owners home, where drug paraphernalia has been found.

Still no arrests have been made.