Whistleblower actions filed under the False Claims Act assist the government in stopping fraud in connection with federal student loans and grant, referred to collectively as “student aid,” received by for-profit schools, such as vocational, trade, or technical colleges. Student aid whistleblowers are usually current or former employees of the schools who come forward to assist the federal government in uncovering and putting a stop to fraudulent activity through the filing of qui tam lawsuits under the False Claims Act.
Whistleblowers, referred to as “relators,” who file under the False Claims Act can recover an award of between 15% and 30% of the government’s total recovery for claims that expose fraud occurring in connection with the receipt of federal monies, including student aid.
In the last decade, enrollment and tuition prices at for-profit educational institutions have increased dramatically. Between 2009 and 2010, for-profit schools received $32 billion in federal student aid funding. This comprises 25 percent of all federal student aid disbursed by the Department of Education through the Higher Education Act. The majority of student aid comes in the form of Stafford loans, Pell Grants, and GradPlus loans. Along with this influx of federal monies has come an increase in scrutiny by both federal and Mississippi state officials who question whether the tax dollars being pumped into these schools are justified by the education provided to students.
In 2011, a monumental whistleblower action was filed against one of the largest for-profit colleges. The suit resulted in the recovery of $78.5 million on behalf of the government, and a substantial award to the brave whistleblower. Some violations that have recently gained government support include:
- Enrolling ineligible students;
- Tying employee compensation to student enrollment figures;
- Receiving more than 90 percent of the school’s funding from federal student aid;
- Misrepresenting job placement rates of graduates;
- Continuing to enroll students who should have been dismissed due to poor grades or attendance.
New federal and state regulations have recently been enacted and the number of claims filed by whistleblowers against for-profit schools and colleges will likely increase in the future. Some potential claims may include:
- Inaccurate reporting of attendance, graduation, and student employment data;
- Deceptive recruitment or marketing practices;
- Falsifying student information to qualify for student aid;
- Inaccurate reporting of private loans, discounts, or rebates provided to students.
Anyone considering filling a qui tam action under the False Claims Act will need an experienced attorney to represent them. Your attorney will guide you through the often complex qui tam procedure and assist you in filing your action. Your attorney will ensure you do not experience illegal retaliation for your actions, and see that you receive the whistleblower award you deserve for bringing the fraudulent activity to light.
Barrett Law PLLC: Protecting Schools, Colleges, Universities, and the Public Through Student Aid Fraud Actions
Whistleblower actions filed under the False Claims Act can prove instrumental in helping the government stop fraud in connection with federal student loans and grants. Whistleblowers who file Qui Tam lawsuits under this act can also receive considerable compensation. The renowned Mississippi Qui Tam Attorneys at Barrett Law PLLC have over 75 years of experience guiding brave whistleblowers through the filing of educational fraud based qui tam actions. Our experienced attorneys have the drive, knowledge, and exceptional skill to successfully bring any qui tam action. At Barrett Law PLLC, we offer a free consultation to all new clients and operate on a contingency fee basis. For representation by a team of celebrated whistleblower attorneys, call Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free consultation.