Department of Education battles to protect students and taxpayers from for-profit college fraud

posted on:
February 23, 2016

Archie Grubb

The U.S. Department of Education (DOE) has announced the formation of a Student Aid Enforcement Unit. This unit was created to work closely with other federal and state agencies to investigate illegal actions by for-profit colleges.

Student enrollment in for-profit colleges has risen significantly in recent years, due in part to fraudulent marketing campaigns and dishonest recruiting tactics. Secretary of Education John B. King, Jr., has acknowledged the alarming trend:

“When Americans invest their time, money and effort to gain new skills, they have a right to expect they’ll actually get an education that leads to a better life. When that doesn’t happen we all pay the price. So let me be clear: schools looking to cheat students and taxpayers will be held accountable.”

Beasley Allen continues to investigate whistleblower claims involving the misuse of federal funds in the for-profit education industry. For example, Beasley Allen represented some of the whistleblowers responsible for uncovering a massive fraud scheme run by for-profit education giant Corinthian Colleges.

Corinthian misstated job placement rates to potential students and the federal government. Students relied on the bogus statistics in deciding to take on federal and private student loans to pay the College’s exorbitant tuition. Corinthian’s disregard for the future of its students was more than unprofessional, unacceptable, and unethical; it was fraud.

The efforts of Beasley Allen’s clients, who reported the wrongdoing they witnessed while they served as admissions, financial aid, and career placement counselors at Corinthian, helped lead to a $30-million fine against Corinthian and, ultimately, the bankruptcy and closure of the school.

Are you aware of fraud being committed against the federal government, or a state government? If so, the FCA can protect and reward you for doing the right thing by reporting the fraud. If you have any questions about whether you qualify as a whistleblower, please contact an attorney at Beasley Allen for a free and confidential evaluation of your claim. There is a contact form on this website, or you may email one of the lawyers on our whistleblower litigation team: Archie Grubb, Larry Golston, Lance Gould or Andrew Brashier.

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