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United States Intervenes and Settles False Claims Act Case Brought by Goldberg Kohn Client

July 20, 2016

Preet Bharara, the United States Attorney for the Southern District of New York, and Brian Hickey, Special Agent in Charge of the U.S. Department of Education (USDOE), Office of Inspector General’s Northeast Region, announced that the United States has settled civil claims under the False Claims Act against the Allen School of Health Sciences, a for-profit educational institution based in Brooklyn and Queens, New York, that offers certificate and degree programs in medical services fields, and Christopher Wargo, the former chief operating officer of the Allen School.  

The settlements resolve claims, originally brought by a Goldberg Kohn client, that the Allen School and Wargo violated the USDOE rule prohibiting the payment of incentive compensation to enrollment personnel at for-profit schools based on their success in securing student enrollments. The settlement with the Allen School also resolves claims that the Allen School violated a separate USDOE rule prohibiting schools from providing inaccurate job placement rates to prospective students.  Goldberg Kohn's client will receive a portion of the amounts paid by the Allen School to resolve the matter.

To read the full press release click here.

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