Articles Tagged with federal student aid fraud lawyer

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.

For-profit schools provide an education to many students who might otherwise be unable to attend post-secondary school.  However, these schools have a dual mission: a commitment to educating students and a commitment to earning money for investors and shareholders.  While many, perhaps most, are ethical and education-oriented, some for-profit schools misuse federal student aid funds perpetuating scams that hurt the government and students alike. Today, our false claims act law firm looks at federal student loan fraud and reminds readers of the importance of whistleblowers in all government fraud cases.

Education Affiliates Pays $13 Million to Resolve False Claims Allegations

classroomOn June 24, the U.S. Department of Justice (“DOJ”) announced that Education Affiliates (“EA”) agreed to pay $13 million to settle False Claims Act (“FCA”) claims against the for-profit institution.  EA operates 50 campuses providing post-secondary training in a range of fields in five states.  The suits were brought by five whistleblowers who will share approximately $1.8million under the FCA’s qui tam provisions.  EA denies any wrongdoing.