Innovative Educational Programs, LLC, Federal Tutoring Fraud, New York 2009

Defendant Agrees to Pay $1,185,000 to Resolve Civil Fraud Allegations

NEW YORK CITY, New York – Innovative Educational Programs, LLC, an educational services provider, has agreed to pay the United States $1,185,000 to resolve civil allegations that it fraudulently billed the United States for tutoring services for underprivileged New York City students that it never actually provided.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Terry Harris, Special Agent-in-Charge, U.S. Department of Education, Office of Inspector General, Eastern Regional Office (DOE-OIG), announced the settlement.

"This settlement should put providers of educational services on notice that this Office will aggressively protect federal programs meant to help disadvantaged students and will hold accountable those who exploit and manipulate such programs," stated Acting United States Attorney DuCharme.

The settlement resolves allegations that, between 2009 and 2012, Innovative, a New Jersey limited liability corporation, fraudulently obtained federal funds for purportedly providing after-school tutoring services to underprivileged students attending underperforming New York City public schools.

The New York City Department of Education paid Innovative $72.80 per hour for each student that Innovative tutored. This money consisted entirely of funds made available to New York State by the United States under the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001.

The government’s investigation revealed that Innovative billed the government for allegedly providing after-school tutoring services to students on days when the students were, in reality, absent from school.

The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act (the Act). Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery.

Defendant: Innovative Educational Programs, LLC

Criminal Charges: Fraudulently billing the United States for tutoring services that were not provided

City and State: New York City, New York

Exact Date: Between 2009 and 2012

Sentence or Outcome: Paid $1,185,000 to resolve civil allegations

Dollar Amounts: $1,185,000, $72.80 per hour

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