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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 9 of 11

August 22, 2013

ATI Enterprises Inc. will pay the government $3.7M to resolve False Claims Act allegations that it falsely certified compliance with federal student aid programs’ eligibility requirements and submitted claims for ineligible students. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

In Their Own Words — FastTrain College Student

Posted  11/30/15

-- “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.

Posted  11/20/15
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...

Constantine Cannon Announces Record Settlement Win in False Claims Act Suit Against Education Management Corporation

Posted  11/17/15
By the C|C Whistleblower Lawyer Team Constantine Cannon is pleased to announce that Education Management Corporation (EDMC), a Pittsburgh-based operator of for-profit educational institutions, has agreed to pay more than $80 million to settle an eight-year False Claims Act whistleblower lawsuit.   It is the largest settlement ever in an FCA suit involving the U.S. Department of Education. Constantine Cannon Of...

In Their Own Words — Litman

Posted  11/17/15

-- “It’s the taxpayers in general who were ripped off. But the most vivid victims here are students who were reeled in with high-pressure tactics and wound up often defaulting with outsized loans that they can’t discharge in bankruptcy. It’s pretty tragic.”

Constantine Cannon attorney Harry Litman, lead counsel for the whistleblowers in the False Claims Act lawsuit against for-profit education company...

November 15, 2015

Constantine Cannon Of Counsel Harry Litman quoted in the New York Times article, For-Profit College System Expected to Pay Millions.  Click here to read the article.

November 14, 2015

Partner Eric Havian quoted in the news regarding a case brought by Constantine Cannon attorney Harry Litman. Click here to read the article.

EMC - Procurement Fraud/Education ($95.5 million)

A Constantine Cannon attorney represented two whistleblowers in a False Claims Act case alleging Education Management Corporation violated the recruiter incentive compensation ban, enrolling students regardless of whether they were suitable candidates.  In November 2015, the company agreed to pay $95.5 million to settle the action, the largest False Claims Act settlement to date involving the Department of Education.  The two whistleblowers (along with several others) received a whistleblower award of $11.3 million.  Read more -- Business InsiderDOJ, PR Newswire, CC.

DOJ Catch Of The Week -- Education Affiliates

Posted  06/26/15
By the C|C Whistleblower Lawyer Team This week's Department of Justice "catch of the week" goes to Education Affiliates.  On Wednesday, the for-profit education company agreed to pay $13 million to settle charges it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid.  The Maryland-based company operates 50 campuses in the US under various trade names,...

May 26, 2015

Ashworth College has agreed to settle FTC charges it misrepresented to students that they would get the training and credentials needed to switch careers or get a new job, and that the course credits they earned would transfer to other schools. In reality, many programs offered by the for-profit institution did not meet state requirements for desired careers, and the claims made about credit transfers were often not true. Jessica Rich, Director, FTC’s Bureau of Consumer Protection, said “when schools promise students they can transfer course credits or get a better job after completing their programs, they’d better be able to back up those claims.”
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