Whistleblowers Help Stop Student Aid Fraud at For-Profit Schools
GOVERNMENT OFFICIALS ARE INCREASINGLY SUPPORTIVE OF PRIVATE WHISTLEBLOWER ACTIONS FILED UNDER THE FALSE CLAIMS ACT THAT REPORT FRAUD OR DECEPTIVE PRACTICES BY FOR-PROFIT TRADE SCHOOLS, COLLEGES, AND UNIVERSITIES.
Whistleblower actions filed under the False Claims Act are helping the government stop fraud in connection with the federal student loans and grants (collectively known as “student aid”) received by for-profit trade schools, also known as trade, vocational or technical colleges. The whistleblowers are usually current or former employees of the schools who help the federal government uncover and stop fraudulent activity by filing of Qui Tam lawsuits under the False Claims Act. Known as “relators” in False Claims Act cases, whistleblowers earn an award that is anywhere from 15% to 30% of the government’s recovery for claims that bring to light fraud in connection with the receipt of federal funds, such as student aid.
Enrollment and tuition prices at for-profit educational institutions have grown quickly over the last decade. In 2009-10, for-profit schools received $32 billion in federal student aid funding – 25 percent of all federal student aid disbursed by the Department of Education under the Higher Education Act. The majority of this aid is from Pell Grants, Stafford loans and GradPlus loans. But with this influx of federal money has come increased scrutiny from federal and state officials who question whether the tax dollars pouring into these schools are justified by the education they provide to their students.
In 2011, a whistleblower action filed against one of the largest for-profit colleges resulted in a $78.5 million recovery by a whistleblower on behalf of the government. Other violations that have recently gained government support include:
- Tying employee compensation to student enrollment numbers;
- Fraudulently receiving more than 90 percent of a school’s funding from federal student aid (the “90/10 rule”);
- Misrepresented job placement rates for graduates;
- Enrolling ineligible students; and
- Continuing to enroll students enrolled who should have been dropped due to poor grades or attendance.
With the enactment of new Federal and State regulations, the types and numbers of claims filed by whistleblowers against for-profit schools will likely increase. For example, potential claims might include:
- Falsifying student information in order to qualify for federal grants and loans;
- Inaccurate reporting of graduation, attendance, or student employment data;
- Failing to return federal funding after a student withdraws;
- Inaccurate reporting of rebates, private loans, or discounts provided to students;
- Deceptive marketing or recruitment practices; and
- Continuing to enroll and collect federal aid for students that fail to meet standards or pay their tuition balance.
Federal law does not allow individuals to file a whistleblower or “qui tam” case under the False Claims Act without an attorney. The attorneys at Levy Konigsberg LLP have in-depth knowledge of the federal student aid system and experience investigating whistleblower claims against higher education institutions. We have assisted our whistleblower clients in recovering more than $70 million on behalf of the Government and have the expertise to help make your case a success.
If you have knowledge and proof of Education Fraud, then give us a call today for a free consultation and case review with an experienced whistleblower attorney.
This information is for educational purposes. It is not offered as and does not constitute legal advice or legal opinions. You should not act or rely upon this information without seeking the advice of an attorney.
WHISTLEBLOWER NEWS
- 2017 False Claims Act Year in Review: Government Recovers $3.7 Billion
- Do You Work For A Motor Vehicle Manufacturer, Supplier, Or Dealership And Came Across Safety Violations Your Employer Is Trying To Keep Hidden? Don’t Let Them Get Away With It, Call Now!
- 2016 False Claims Act Year in Review: Whistleblowers Collect $519 Million
- New Study Confirms Importance of Whistleblowers in Preventing Corporate Fraud
- Where was the Wells Fargo Whistleblower? Part II.
- Fiscal Year 2016 Record Year for SEC Whistleblowers - $57 Million Awarded to Whistleblowers!
- SEC Investigating Wells Fargo Fraudulent Practices
- Whistleblower First! SEC Rewards Whistleblower $3.75 Million For Reporting Violations of the Foreign Corrupt Practices Act.
- Did Your Employer Actually Qualify For That Government Set-Aside It Received? Did Your Competition Win A Contract It Didn’t Deserve?
- Hiding Wealth Offshore To Avoid Paying Taxes Is Illegal And IRS Will Reward Those Who Blow The Whistle On Anyone That Tries
- Aware of Banks and Mortgage Lenders Defrauding the Government Through FHA or VA Insured Loans? Don’t “Short” The Market, Contact Us!
- U.S. Education Department Creates New Unit to Investigate Student Aid Fraud
- The False Claims Act Year in Review: Whistleblowers Collect a Record $597 Million
- False Claims Act Update: Top Recoveries & Enforcement Trends from 2014
- Whistleblower Attorneys Recover $1M in Medicare Fraud Case
- Qui Tam Attorney Discusses the DOE’s Final Gainful Employment Rules
- Career Education Corporation Agrees to $10.5 Million Settlement Over Inflated Employment Rates
- Pharmaceutical Company to Pay $40.1 M to Settle Whistleblower Lawsuit
- Qui Tam Lawsuit Involving Healthcare Fraud Intervened by US Government
- Medicare Fraud Responsible for $23 Million Paid to the Dead in 2011?
Find out whether you have a case by speaking to one of our experienced mesothelioma lawyers via our 24/7 toll-free hotline or by submitting an email inquiry. Our attorneys will be quick to respond to you and happy to answer all of your questions.
Know the Difference
Committed to Doing What's Right-
Over $3 Billion Won
We have represented numerous individuals and groups of workers, winning for them multi-million-dollar settlements and verdicts.
-
There's No Case Too Big
Our team has achieved groundbreaking victories in highly complex cases and has gone up against some of the toughest defendants in the country.
-
Trial Attorneys
Our attorneys excel in the courtroom and are not afraid to bring a case in front of a jury if a fair settlement for the client has not been reached.
-
A Thought Leader in the Industry
Our firm's knowledge and experience are in high demand, and many news outlets have asked us to share our legal expertise.
-
Access to World Class Resources
Our experienced attorneys use cutting-edge technology and highly regarded experts to help us achieve the best possible result for our clients.
-
Changing the World for Good
We not only want to achieve the best possible results for our clients, but we also strive to prevent future harm by changing public health policies.
Thousands of Clients Helped
Hear What They Have to Say
-
Professional, responsive and very good at their jobs.
“From the first visit to my home, to my last visit to the office to collect my settlement, I was very happy with the services provided by this firm. They are professional, very responsive and very good ...”
- Lisa Ross -
They have truly gone above and beyond.
“I have been beyond pleased how Levy Konigsberg is handling my matter. They answer my questions in a timely matter and when warranted, ease my worries and concerns. They have truly gone above and ...”
- Anne Fahey -
I put my Faith and Trust into Corey Stern!
“Selecting a Law firm to represent me was one of the biggest decisions I've had to make in my life. I put my Faith and Trust into Corey Stern, and he exceeded all my expectations.”
- Dennis McGowan -
With this team on my side we came out on top.
“Levy Konigsberg and team are a group of men and women that give their all, down to the receptionist. I had a case that was almost unbeatable but with this team on my side we came out on top. They keep ...”
- Angie Garrido -
Very happy with our settlement.
“My husband and I were VERY happy with our experience with this firm. They were always caring and really helped us go through this in a very hard time in our lives .We continue to be in touch with the ...”
- Lori Rosa -
Wow is all I can say.
“It has been a few years now but I needed to post this. My dad suffered so much from Mesothelioma. My brother looked into the law and our rights. Unfortunately he died also before anything was done. It ...”
- Carol N. -
Their dedication to receive the highest results for their clients was amazing.
“Working with Levy Koningsberg LLP was a very positive experience. Their professionalism and curiosity was outstanding. I was a pleasure working with this firm. Their dedication to receive the highest ...”
- Emily DeRogatis -
Such a great team!
“The whole team at Levy, Konigsberg LLP have been extremely professional and kind during our most difficult time. They keep you informed during the process, check in often asking if there are any ...”
- Kevin Kober -
We definitely got the right law firm!
“Levy Konigsberg represented my daughter Linda, who was diagnosed with mesothelioma at 16 years old. She endured many surgeries and chemotherapy including HIPEC. She traveled the country seeking ...”
- Mark Wells -
Levy Konigsberg continued to help my family fight for the justice my father deserves.
“Levy Konigsberg was there for my father as soon as he was diagnosed with mesothelioma they helped him get medical treatment in another state that specializes in his condition and even provided housing ...”
- Stephanie Vitale
Our Blog
-
Do You Work For A Motor Vehicle Manufacturer, Supplier, Or Dealership And Came Across Safety Violations Your Employer Is Trying To Keep Hidden? Don’t Let Them Get Away With It, Call Now!View Article
- Whistleblower / Qui Tam
-
2016 False Claims Act Year in Review: Whistleblowers Collect $519 MillionView Article
- Whistleblower / Qui Tam
-
New Study Confirms Importance of Whistleblowers in Preventing Corporate FraudView Article
- Whistleblower / Qui Tam