Archive

DOJ Intervenes in Whistleblower-Initiated Customs Fraud Case (and, Likely Unintentionally, Potential Family Feud)

The Department of Justice’s (DOJ) intervention last week in a whistleblower-initiated False Claims Act case is going to make for an awkward holiday season for at least one family. The case, US ex rel. Xing Wei v. Yingshun Garments, Inc. et al, was filed in January 2013 in the Southern District of New York and alleges a scheme to avoid import duties on women’s clothing manufactured in China and sold to retailers in...

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.

In Their Own Words -- Parker

-- “The H-1B visa program is a powerful and positive tool for businesses and foreign workers alike when properly used. When employers abuse the program, however, the foreign workers become a captive stable of cheap labor, victimized to the company’s financial benefit.”

U.S. Attorney John Parker of the Northern District of Texas. Click here for more.

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...

DOJ Catch of the Week -- Kilgore Flares

By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Tennessee-based defense contractor Kilgore Flares Company.  On Monday, the company and one of its subcontractors, New York-based ESM Group Inc., agreed to pay $8 million to resolve charges they violated the False Claims Act by selling defective infrared countermeasure flares to the U.S. Army and, for ESM, knowingly...

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,...

DOJ Catch Of The Week -- Ameri-Source

By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to the Pennsylvania-based Ameri-Source importer companies -- Ameri-Source International Inc., Ameri-Source Specialty Products Inc., Ameri-Source Holdings Inc. -- their owners, Ajay Goel and Thomas Diener, and the related importer, SMC Machining LLC, incorporated at Goel’s direction and formerly owned by his wife.  On...

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...