Archive

December 8, 2017

Jason Sparling agreed to pay $180,000 to settle allegations of violating the False Claims Act by submitting to the USDA an application for a drought disaster payment under the Livestock Forage Disaster Program and receiving a $95,000 payment when in fact none of Sparling’s cattle were on the drought stricken pasture during the qualifying period.  DOJ (DSD)

December 4, 2017

Former U.S. Congresswoman Corrine Brown was sentenced to five years in prison and to forfeit roughly $650,000 for her role in a conspiracy and fraud scheme involving a sham scholarship charity One Door For Education.  Brown’s long-time Chief of Staff Elias “Ronnie” Simmons was sentenced to serve 48 months in prison and Carla Wiley, the president of the fraudulent charity, was sentenced to serve 21 months in prison.  DOJ

October 3, 2017

Pennsylvania garment wholesaler Notations, Inc. agreed to pay $1 million to settle charges of violating the False Claims Act by repeatedly ignoring warning signs that its business partners, Yingshun Garments Inc., Import Global Designs Inc., and Olgrem LLC, which imported garments from China, were engaged in a fraudulent double-invoicing scheme to underpay customs duties owed on the imported garments they sold to Notations.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower, Xing Wei, will receive an award from the proceeds of the government's recovery.  DOJ (SDNY)

August 18, 2017

California announced a tentative settlement that provides over $51 million in debt relief for Californians who attended Corinthian Colleges. Corinthian intentionally targeted low-income, vulnerable individuals through deceptive and false advertising that misrepresented job placement rates and school programs. These unlawful activities were enabled by Aequitas Capital Management Inc., a private equity firm currently under U.S. Securities and Exchange Commission-imposed receivership. Federal student loans made up almost 90 percent of Corinthian’s revenue. To maintain this revenue, Corinthian needed its mostly low-income students to receive these loans. Federal rules require for-profit colleges receive at least 10 percent of their revenue from sources other than federal student aid. To help fill this gap, Aequitas and Corinthian created a financial arrangement whereby Aequitas provided private loans to Corinthian students, and Corinthian guaranteed Aequitas a profit and agreed to buy back all non-performing loans. CA, FL

July 5, 2017

The FTC mailed 173,000 refund checks totaling more than $49 million to students in compensation for DeVry University’s allegedly misleading ads, which the Commission alleged deceived students about their likelihood of finding jobs in their field of study and the income level they could achieve upon graduation. According to the FTC’s complaint, DeVry deceptively claimed that 90 percent of its graduates actively seeking employment landed jobs in their field within six months of graduation and that graduates had 15 percent higher incomes one year after graduation on average than the graduates of all other colleges or universities. As part of the FTC’s $100 million settlement, the school agreed to pay $49.4 million to the FTC for partial refunds to some students and $50.6 million in debt relief. The debt forgiven included the full balance owed—$30.35 million—on all private unpaid student loans that DeVry issued to undergraduates between September 2008 and September 2015, and $20.25 million in student debts for items such as tuition, books and lab fees. FTC

May 1, 2017

Texas-based importer Import Merchandising Concepts L.P. agreed to pay $275,000 to resolve allegations it improperly evaded customs duties on imports of wooden bedroom furniture from China by misclassifying the furniture as non-bedroom furniture, which is not subject to any antidumping duties. DOJ

May 1, 2017

New York announced the sentencing of Keisha Relf Davis, a New York State Department of Education vocational counselor, for taking part in a scheme that stole nearly $2.4 million from New York State. In September 2014, a Bronx County grand jury indicted Relf Davis along with co-defendants, Juan Cabrera and Juani Ortiz, who were already sentenced on Grand Larceny charges. Relf Davis was sentenced to two to six years in state prison by the Honorable Justice Steven Barrett. As part of the scheme, Relf Davis, in exchange for cash bribes, approved students for the Office of Adult Career and Continuing Education Services’ Vocational Rehabilitation Program (“ACCES-VR”), although these students never applied to the program. The ACCES-VR program was created to help eligible New Yorkers with disabilities and functional limitations gain self-dependence through education, training, and employment. Relf Davis knew that the students she approved did not have disabilities or functional limitations to qualify for this program. NY

April 12, 2017

The Wisconsin Department of Health Services agreed to pay roughly $7 million to resolve allegations it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP). DOJ

April 11, 2017

Argentine information technology and consulting firm Sistemas Globales S.A. agreed to pay $1 million to settle charges that it and its corporate affiliates, including U.S. affiliate Globant LLC, violated the False Claims Act and the Program Fraud Civil Remedies Act relating to Globant’s use of B-1 visas for certain of its foreign national employees. DOJ (NDTX)

April 10, 2017

The Virginia Department of Social Services agreed to pay roughly $7.1 million to resolve allegations it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP). DOJ