Click here for a confidential contact or call:


Education Fraud

This archive displays posts tagged as relevant to fraud in government education programs. You may also be interested in the following pages:

Page 3 of 9

October 29, 2018

The FTC has settled with an online student loan refinancer, SoFi Lending Corps, for allegedly misrepresenting the amount that student loan borrowers could save by refinancing with their company, sometimes by double the actual amount. In calculating the savings, SoFi allegedly excluded certain borrowers and failed to disclose or disclose clearly the fact that it had made those exclusions, a violation of the FTC Act. It will face civil penalties if it violates the finalized settlement order. FTC

October 26, 2018

A former U.S. Department of Veterans Affairs official, James King, pleaded guilty to demanding and receiving bribes from three for-profit schools, Atius Technology Institute, Eelon Training Academy, and School A, in exchange for enrolling disabled military veterans in those schools.  All three school owners sent King and other VA officials false information about the education being provided to veterans.  King facilitated over $2 million in improper payments from the VA using the veterans’ federal benefits. DOJ

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

Posted  10/26/18
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...

September 6, 2018

Two copycat military website operators—Sunkey Publishing, Inc. and, LLC—have settled with the Federal Trade Commission (FTC) for violating the FTC Act and the FTC's Telemarketing Sales Rule (TSR). In addition to deceiving potential enlistees into providing personal information, the operators sold the information to schools as marketing leads, placed illegal telemarketing calls to people on the Do Not Call list, and gave potential enlistees the false impression that certain schools were endorsed by the military. As part of the settlement, they will turn over the websites and pay a suspended penalty of $12.1 million. FTC

Ninth Circuit Refuses to Kill Incentive Compensation Ban Whistleblower Suit

Posted  08/31/18
By Leah Judge
Education Fraud
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...

January 31, 2018

Florida Technical College, Inc. agreed to pay $600,000 to settle claims it violated the False Claims Act through the college’s Cutler Bay Campus falsely certifying compliance with federal student aid programs’ eligibility requirements and submitting claims for 27 ineligible students. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Laurie Astacio, a former administrative assistant in the Cutler Bay admissions office. She will receive a whistleblower award from the proceeds of the government’s recovery. DOJ (SDFL)

Whistleblower Reports Massive Fraud at Ohio Charter School

Posted  04/26/18
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...

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

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
1 2 3 4 5 9


Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: