Archive

Catch of the Week — VA Official Pleads Guilty to Bribery, Fraud, and Obstruction in $2 Million Scheme

A former U.S. Department of Veterans Affairs official, James King of Baltimore, Maryland, pleaded guilty to demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools. King facilitated over $2 million in improper payments from the VA using the veterans’ federal benefits. He pleaded guilty to one count of honest services and money/property wire...

Ninth Circuit Refuses to Kill Incentive Compensation Ban Whistleblower Suit

Last week, the Ninth Circuit refused to kill a False Claims Act lawsuit alleging that San Francisco’s Academy of Art University violated the federal incentive compensation ban. The ban, which falls under Title IV of the Higher Education Act, prohibits schools that receive federal funds from paying incentives to employees for securing enrollments. The ban operates to protect students from pushy recruiters looking to...

Whistleblower Reports Massive Fraud at Ohio Charter School

By the C|C Whistleblower Lawyer Team A former employee of Electronic Classroom of Tomorrow (ECOT) is blowing the whistle on the online charter school inflating attendance records and learning hours to defraud the state out of millions of dollars. ECOT is now defunct, but at one time was the largest online charter school in Ohio. The whistleblower, who worked in ECOT’s tech department, informed the Ohio Department...

Fraudster of the Week -- Barbara Byrd-Bennett, Ex-CEO of Chicago Public Schools

By the C|C Whistleblower Lawyer Team Last Friday, a federal judge sentenced former Chicago Public Schools CEO Barbara Byrd-Bennett to more than four years in prison for her role in steering $23 million in city contracts in exchange for kickbacks.  Byrd-Bennett—who earned a $250,000 annual salary and had multiple pensions from previous jobs—received more than $2 million for her role in the...

In Their Own Words — Rodney Lipscomb

 -- “THERE WAS A FINAL SENSE OF JUSTICE, OF ‘WOW SOMETIMES IN OUR COUNTRY WE PREVAIL AND THERE’S JUSTICE.’”

ITT Technical Institutes whistleblower Rodney Lipscomb, commenting on the Institutes’ recent collapse, weeks after the Department of Education banned it from enrolling new students using federal financial aid. Read more here.

Trump University: A Foreboding

By Gordon Schnell and Phillip Brown (Published in US News and World Report) Big news for Donald Trump on the campaign trail.  It has nothing to do with his inexorable march to the Republican nomination.  It is about the fraud action New York brought against him concerning his now-defunct Trump University.  On Tuesday, a New York judge ruled the case will go to trial, perhaps as early as the fall, clearly...

State Enforcement Spotlight – Corinthian Colleges, Inc.

By the C|C Whistleblower Lawyer Team This State Enforcement Spotlight features Corinthian Colleges, Inc. On Wednesday, California announced that it has obtained a $1.1 billion judgment against defunct Corinthian Colleges, Inc. (“CCI”) for their predatory and unlawful practices. While CCI filed for bankruptcy in May 2015, this judgment can help secure further relief for struggling students. In October 2013,...

Department of Education Creates New Student Aid Enforcement Unit to Protect Students and Taxpayers

By Hamsa Mahendranathan The U.S. Department of Education (DOE) is creating a Student Aid Enforcement Unit to respond more quickly and efficiently to allegations of illegal actions by higher education institutions.  The unit will collaborate with, and incorporate evidence gathered in investigations by, partner state and federal agencies, in building cases against institutions of higher education. The unit will also...

In Their Own Words — FastTrain College Student

-- “The instruction I received was at best awful.  The school was not interested in teaching students but rather interested in processing student loans for financial gains.” 

Complaint from student enrolled at FastTrain College, whose owner has been convicted of theft and conspiracy. Click here for more.

DOJ Catch Of The Week -- Education Management Corp.

By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Education Management Corp. (EDMC), the second-largest for-profit education company in the country.  On Monday, the company agreed to pay $95.5 million to resolves allegations it violated the federal False Claims Act and several state False Claims Acts by falsely certifying it was in compliance with Title IV of the...