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Showing 4 posts in Higher Education.

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Recoveries For FCA Claims Involving Fraud in 2016

In 2016, whistleblowers filed 702 qui tam suits and the Department of Justice recovered $2.9 billion in False Claims Act lawsuits initiated by whistleblowers.  In  qui tam lawsuits, whistleblowers, or “relators,” are entitled to receive up to 30% of the recovery.  And in 2016, whistleblowers recovered $519 million. More

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Federal Ban on Higher Education Incentive Compensation for Student Recruiting: A $4.29M False Claims Act Settlement

Title IV of the HEA (Higher Education Act) bans universities and colleges from paying incentives to employees, including recruiters, for securing enrollments. To obtain federal funding, colleges and universities must enter into a Program Participation Agreement with the U.S. Department of Education (USDOE), promising, among other things, to comply with the incentive compensation ban. The ban prohibits any form of incentive compensation, including bonuses, promotions and pay raises based on success in recruiting students to the school. The purpose of the ban is to prevent schools from creating a "boiler room" atmosphere, where overzealous recruiters "sell" students on their school, regardless of whether it is a good fit for the student. In June 2015, the U.S. Department of Education announced that it would enforce these rules more closely. More

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Higher Education Student Loan Fraud and the False Claims Act

The U.S. government invests in colleges, students and universities by contributing to university endowments, offering scholarships, providing grants, and guaranteeing student loans. In turn, higher education organizations contribute to a well-educated workforce and help strengthen the economy. More

For-Profit Colleges a Hotbed for Fraud

for-profit colleges fraud

For-profit schools have become a hotbed for fraud in recent years. Because for-profit colleges rely heavily on government aid, these schools often target lower-income, minority and immigrant students, and some for-profit schools have been accused of engaging fraudulent enrollment practices in order to reach the potential students and the government funds that they bring in. More

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