We believe education is a key component of the American dream, allowing people to take charge of their own destiny. When schools commit fraud, they steal this opportunity. The False Claims Act is a powerful tool for fighting federal student aid fraud https://www.brodfirm.com/qui-tam-lawsuits-and-whistleblowers.html and other forms of higher education fraud. Our student aid fraud law firm has the knowledge and experience needed to partner with whistleblowers and confront those who commit education fraud.
$9.28 Million Default Judgment in Case Alleging Federal Student Aid Fraud
Last month, the Department of Justice (“DOJ”) announced the entry of a judgment of more than $9.28 million against Lacy School of Cosmetology (“the School”) and Earnest “Jay” Lacy. According to the government, Jay Lacy served as President and CEO of the School which had four locations in South Carolina before it shut its doors. The School received approval from the United States Department of Education to take part in federal student aid programs. However, according to the government, the school misappropriated government funds by failing to comply with the requirements of the student aid programs, making improper disbursements of aid monies, not refunding student credit balances, and concealing these wrongs by submitting false statements indicating compliance with aid regulations.