Five Point Enterprises LLC, a for-profit company based in Austin, Texas, has agreed to pay the United States $2,049,159 to resolve allegations that it submitted false claims to the Department of Veterans Affairs (VA) for educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill).
The government contends that, between 2015 and 2020, Five Point Enterprises knowingly enrolled Post-9/11 GI Bill funded veterans in courses at 20 New Horizons franchises across the country where 85% or more of the students were already veterans or supported students, in violation of the 85/15 Rule, and failed to report to the VA the tuition reductions it provided to veterans, in violation of the Last Payer Rule.
The 85/15 rule ensures that educational institutions offer quality programs with a substantial number of non-supported students enrolled, which weeds out any institutions that survive only by the influx of federal benefits. For veteran students properly enrolled in a course, the VA pays the actual net cost for tuition and fees charged by the school after it has applied any scholarships, waivers, grants or other assistance designed to defray the cost of tuition and fees, which is known as the “Last Payer Rule.”
“The Post-9/11 GI Bill educational assistance benefits are part of our promise to the brave women and men who have served our country,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “Today’s settlement demonstrates our commitment to safeguarding the integrity of this important program.”
“My office is committed to protecting the integrity of our federal programs and the education benefits military veterans and their families have earned by serving this country,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We and our partners stand ready to hold accountable those who take advantage of them through fraudulent practices.”
The Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of Texas handled the matter. VA OIG provided substantial assistance in the investigation.
The claims asserted against Five Point Enterprises are allegations only. There has been no determination of liability.
Defendant/respondent: Five Point Enterprises LLC
Criminal charges: Submitting false claims to the VA for educational assistance benefits under the Post-9/11 GI Bill
City and state: Austin, Texas
Exact date: Between 2015 and 2020
Sentence or outcome: Five Point Enterprises agreed to pay $2,049,159
Dollar amounts: $2,049,159
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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