BIRMINGHAM – North Alabama U.S. Attorney’s Office worked with the for-profit education company, Education Affiliates, on allegations of fraud against the U.S. Department of Education. The company settled with the government for $13 million in Fiscal Year 2015.
According to a statement from Attorney General Loretta E. Lynch, the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. This amount represents more than seven and a half times the approximately $2.93 billion that the Justice Department appropriated for the 93 U.S. Attorneys’ offices and the main litigating divisions for the 2015 fiscal year.
U.S. Attorney Joyce White Vance announced that the Northern District of Alabama office collected $2.4 million in criminal and civil actions in Fiscal Year 2015. Of this amount, $1.9 million was collected in criminal actions and $483,146 in civil actions. The office also worked with other U.S. Attorney’s Offices and components of the Justice Department to collect an additional $36.7 million in cases pursued jointly with these offices.
Among the civil collections made independently by the U.S. Attorney’s Office for north Alabama was $123,036 from Maurice Gant and the Center for Hearing in Huntsville, and $300,000 from Generics Bidco, a Huntsville pharmaceutical distribution facility. The Center for Hearing paid to settle allegations that it made a series of false claims to the government arising from the provision of audiology services to TVA employees and retirees. Generics Bidco paid penalties to settle allegations that it failed to maintain complete and accurate records and inventories of controlled substances.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office for the Northern District of Alabama, working with partner agencies and divisions, collected $1.4 million in asset forfeiture actions in FY 2015. Forfeited assets do not belong to the individuals who used them in the commission of a crime, but rather are property that has been seized by law enforcement as part of an investigation or prosecution. These assets can include cash, real estate, vehicles, and other items of value.
Attorney General Lynch praised the efforts of the U.S. Attorney’s Office for the Northern District of Alabama, saying, ‘The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse.’
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Key Facts
- State: Alabama
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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