Johnson C. Smith University is looking into a potential rash of fraudulent purchases made using the campus card and student flex dollars.

As reported by The Charlotte Observer, the university reported it had uncovered evidence of fraudulent transactions stemming from student flex dollars loaded on campus cards, which are used to make food purchases on campus. University officials suspect that both students and employees of food-service operator, Perkins Management Services, are involved.

The university was first made aware of the issue following a recent audit conducted by a Perkins employee. The results of that review found more than 300 potentially fraudulent transactions.

According to The Observer report, an email from university administration to students suspected of involvement notified them they were under investigation for allegations they took part in a “criminal conspiracy by which you illegally received funds from food service franchises Red Mango and/or Burger King at JCSU, using your identification account (flex dollars).”

Separate reports echo the claim that employees at campus locations Red Mango and Burger King were able to illegally add money to student cards at the till. The university plans to undertake a weeks-long interview process to meet with each student to gather relevant facts.

The email circulated to suspected students further warned of potential legal prosecution and disciplinary action, and that failure to comply with the investigation could affect future class registration, transcripts and graduation.