Whistleblower helps recover $225,000 from university in financial aid fraud case

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A whistleblower who uncovered a financial aid fraud scheme has helped the government recover $225,000 from a private university.  According to the Department of Justice press release, the university impermissibly paid incentive-based compensation to its recruiters.  The settlement amount is based on the university’s ability to pay.

Title IV of the Higher Education Act prohibits universities that receive federal student financial aid from compensating student recruiters with a commission, bonus, or other incentives based on their success in securing student enrollment.  This law is intended to protect students from educational institutions placing financial aims above the educational needs of its students.  Similar laws prohibit physicians from paying kickbacks for referrals.

This lawsuit was brought under the False Claims Act (FCA), which allows whistleblowers who uncover fraud against the government to file a lawsuit and attempt to recover the lost assets.  Under the FCA, whistleblowers are also entitled to receive a share of any recovery.  Here, the whistleblower will receive $33,750.

If you have uncovered fraud against the government contact the whistleblower lawyers at Miller Law Group today for a free and confidential consultation.  You can also set up your consultation by calling us at (919) 348-4361.  To learn more about whistleblower law, click here.

The settlement discussed above is based on allegations only.  No determination of liability has been made.

Additional Resources:

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Filing a Whistleblower Lawsuits in Secret – The Seal Period

Whistleblower Lawsuits: The Goal of Government Intervention

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