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Currently viewing the tag: "Education fraud"

For-profit universities have recently been the subject of a number of False Claims Act lawsuits.  Continuing this trend, Grand Canyon Education settled its False Claims Act suit for $5.2 million in August. The whistleblower, a former employee of the company, filed the qui tam action in August [...]

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Nelnet, a student lending company based in Lincoln, Nebraska, is scheduled to go to trial on a False Claims Act case next week.  The lawsuit alleges that the company defrauded the U.S. Department of Education, which subsidizes many student loans to make them more affordable to students.  The lawsuit seeks over [...]

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A Government Accountability Office (GAO) report has announced that a study of 15 for-profit colleges shows that these colleges misled students to encourage enrollment, and that students were encouraged to commit fraud when applying for financial aid.  The magnitude of the cost of such fraud on [...]

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Sacramento, CA – A student and three former employees have filed a California False Claims Act case against Universal Health Services, one of the nation’s largest health care management companies and owner of a Sacramento special education school called Creekside Academy.  The lawsuit alleges that the private, for-profit school system falsified records, charged the state [...]

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Attorney General Andrew M. Cuomo has announced a $20 million settlement with food services provider Sodexo for overcharging 21 New York school districts.  The settlement is the largest monetary settlement under the New York False Claims Act that does not involve Medicaid funds.  The settlement will return $15 million to the State of New York [...]

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The University of Phoenix is the nation’s largest, private, for-profit higher education institution for working adult students. Approximately 80% of its students receive financial aid, and the University of Phoenix collects $2 billion a year in taxpayer-funded financial aid on their behalf.  Two former University of Phoenix enrollment counselors, Mary Hendow and Julie Albertson, filed [...]

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