The insurance carrier for defunct, for-profit cosmetology school B&H Education, Inc., which operated the Marinello Schools of Beauty in locations across Southern California, agreed to pay $8,631,000 to resolve allegations the school violated the False Claims Act by obtaining federal student loan funds for ineligible students who received bogus high school diplomas. The allegations originated in a whistleblower lawsuit filed by six former B&H employees under the qui tam provisions of the False Claims Act. The whistleblowers will collectively receive a whistleblower award of $2.5 million from the proceeds of the government’s recovery. In addition to the $8.6 million payment, the insurer will also pay $2,369,000 to the six whistleblowers’ attorneys. DOJ (CDCA)
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