⏱ 2 min read
American Higher Education Development Corporation (AHED), a for-profit college chain, has agreed to pay over $1 million to resolve allegations of inflating graduation statistics and failing to return federal student aid money at three of its schools: Stautzenberger College in Ohio, Rockford Career College in Illinois, and Madison Media Institute in Wisconsin. The scheme involved exaggerating graduation rates by excluding students who withdrew from programs, and failing to return $413,000 in federal student aid. The allegations were first brought to light by Christopher Wargo, a former Chief Operating Officer and Compliance Officer for AHED, who will receive a $227,150 share of the settlement.
The US Department of Justice contends that AHED violated the False Claims Act by submitting false reports to the US Department of Education. The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to sue on behalf of the government when they believe a defendant has submitted false claims for government funds.
US Attorney David Metcalf announced the settlement, stating that federal student aid comes with clear rules, and that the DOJ will continue to deter misconduct and protect taxpayers. The settlement is a significant victory for the government, and highlights the importance of whistleblower provisions in uncovering and preventing fraud.
📋 Key Facts
- Crime: White Collar Crime
- Defendant: Pennsylvania
- Location: PA
- Source: DOJ Press Release
