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February 17, 2016

Posted  February 22, 2016

The U.S. District Court of South Carolina awarded a $9,283,123.00 default judgment against Lacy School of Cosmetology and its president Earnest “Jay” Lacy, for presenting false claims to the U.S. Department of Education for federal student loans and grants.  According to the government, the school failed to comply with numerous federal program regulatory requirements, making unauthorized disbursements of federal student aid funds, failing to refund student credit balances, and concealing its actions by submitting false statements of compliance.  The default judgment is based on a whistleblower lawsuit filed under the qui tam provision of the False Claims Act.  DOJ (SC)

Tagged in: Education Fraud, FCA Federal, Whistleblower Case,