Archive

January 7, 2020

After self-disclosing to the government about grant accounting errors in 2011, the University of North Carolina at Chapel Hill (UNC) has agreed to pay back $4.5 million in excess funds received from the National Institutes of Health (NIH). The errors had been in effect between two different periods, from 2007 to 2011 and from 2014 to 2017, and had caused the University to inadvertently charge salary costs to grants after the grant terms had ended. USAO MDNC

Tagged in: Accounting Fraud, Grant and Research Fraud,

January 3, 2020

Following a qui tam lawsuit alleging fraud against the Post-9/11 GI Bill in violation of the False Claims Act, Caldwell University has agreed to pay more than $4.8 million to the United States. The alleged misconduct occurred between 2011 and 2013 and involved falsely claiming to the Department of Veterans Affairs that classes were developed and taught by the university, when in fact they were developed and taught by an unapproved subcontractor. Caldwell had also charged the Post-9/11 GI Bill up to 30 times the prices charged to others for the same courses, leading the government to pay over $24 million in tuition. USAO NJ

Tagged in: Education Fraud, FCA Federal, Government Programs Fraud, Whistleblower Case, Whistleblower Rewards,

December 19, 2019

Michigan-based biomedical research organization the Van Andel Research Institute will pay $5.5 million to resolve allegations that it submitted false claims for National Institutes of Health funding when it failed to disclose that two of its researchers had received grants from the Chinese government, and took additional steps to conceal that funding, including making misrepresentations about that Chinese funding in response to the NIH. USAO WD MI

Tagged in: FCA Federal, Government Programs Fraud, Grant and Research Fraud,

December 18, 2019

Abhijit Prasad was sentenced to 3 years in prison following his conviction for visa fraud and related charges. Prasad submitted 19 applications for H-1B visas for individuals he claimed would be performing work for Cisco Systems although Cisco had no expectation that the foreign workers would perform work for them and, in some cases, Prasad submitted forged documents purporting to be from Cisco. Prasad was also ordered to forfeit $1.9 million. USAO ED Cal; USAO ND Cal

Tagged in: Criminal Proceedings, Government Programs Fraud, Visa Fraud,

December 17, 2019

India-based outsourcing and business consulting firm Infosys Ltd. has agreed to pay $800,000 to the State of California to resolve allegations that the company misclassified approximately 500 Infosys employees as working in California on B-1 visas rather than H-1B visas. By using the B-1 visas, Infosys avoided California payroll taxes and avoided the H-1B obligation to pay workers at the local prevailing wage. The case was initiated by a whistleblower complaint under the California False Claims Act filed by Jack "Jay" B. Palmer, who will receive 15% of the settlement. CA

Tagged in: FCA State, Visa Fraud, Whistleblower Case, Whistleblower Rewards,

December 10, 2019

The University of Phoenix and its parent company, Apollo Education Group, have agreed to resolve FTC charges through a record $191 million settlement, with $50 million to be paid in cash and $141 million in debts owed by affected students to be canceled. The charges involved ads that gave prospective students the false impression that the university worked with major technology companies to design its curriculum and provide job opportunities. FTC

Tagged in: Education Fraud, Misrepresentations,

December 4, 2019

A small for-profit college and manager accused of defrauding the G.I. Bill program has agreed to pay $120,000 to resolve their liability under the False Claims Act. New Horizons Spokane and its general manager, Spirit Dorris, admitted to failing to comply with a VA requirement that limited the enrollment of students funded by the G.I. Bill to no more than 85% of any given course. The “85/15 Rule,” as it is known, is meant to ensure that educational courses are offered because of public interest and value and not solely to take advantage of VA funding. USAO EDWA

Tagged in: Education Fraud, FCA Federal, Government Programs Fraud,

November 25, 2019

Two entities agreed to pay a total of $1.2 million to resolve claims that the Puerto Rico Municipality of Sabana Grande improperly subcontracted work to be performed under a grant from the U.S. Dept. of Education to the Puerto Rico Department of Education for teacher training. The grant required that the work could not be performed by private entities, but the municipality subcontracted with and disbursed grant funds to private entity the Puerto Rico Olympic Committee (COPUR), which further subcontracted with the company Administrative, Environmental and Sports Consultants (AESC). The municipality will pay $500,000, and COPUR agreed to pay $700,000. In addition, the United States seized more than $1 million from bank accounts belonging to AESC owner Irving Riquel Torres in connection with related criminal proceedings against him. USAO PR

Tagged in: Criminal Proceedings, Defendants, Education Fraud, FCA Federal, Grant and Research Fraud,

November 4, 2019

Golden California Regional Center and its principal Bethany Liou will pay over $50 million in disgorgement and interest to resolve charges of fraud in connection with their sale of interests in the GCRC Cupertino Fund, LP as securities qualifying under the EB-5 visa program. Defendants represented that investor funds would be used to finance real estate development but, in fact, Liou diverted the funds to personal use. SEC

Tagged in: Financial and Investment Fraud, Misrepresentations, Securities Fraud, Visa Fraud,

October 7, 2019

Following self-disclosure in 2017 and a subsequent government investigation, Drexel University has agreed to pay $189,062 to resolve its potential liability under the False Claims Act in connection with misused grants funds from the Department of Energy, the Department of the Navy, and the National Science Foundation. Over the course of ten years, the head of the university’s Department of Electrical and Computer Engineering, Dr. Chikaodinaka D. Nwankpa, improperly spent funds from eight federal grants on personal expenses, including gentlemen clubs and sports bars. Dr. Nwankpa eventually agreed to repay $53,328 to Drexel and resign from his position, while Drexel has since implemented policies to prevent similar misconduct. USAO EDPA

Tagged in: FCA Federal, Grant and Research Fraud,

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