Michigan-based NH Learning Solutions Corp has agreed to pay $975,000 to resolve allegations that it submitted false claims to the Department of Veterans Affairs (VA) for inflated educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill).
The United States filed suit against NH Learning Solutions Corp under the False Claims Act (FCA) in December 2022, in the U.S. District Court for the Eastern District of Michigan. Detroit-based NH Learning Solutions Corp provided technology-focused, non-college degree programs at locations across the Midwest and Northeast.
“The Post-9/11 GI Bill was designed to support the educational needs of our veterans, not to permit schools to illegally profit at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement shows that the Justice Department will hold schools accountable for violating program requirements and submitting inflated claims for payment.”
Under the Post-9/11 GI Bill, the VA pays tuition and fees directly to qualifying schools on behalf of enrolled students. 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 rule ensures that the VA is the payer of last resort and receives the benefit of any tuition-based, financial support available to a student.
The government’s amended complaint alleged that NH Learning Solutions Corp knowingly submitted false claims for inflated tuition and fees, in violation of the last payer rule, at five NH Learning Solutions Corp locations in Illinois, Ohio and Michigan. More specifically, the government alleged that NH Learning Solutions Corp repeatedly reported tuition and fees to the VA on student invoices, where it failed to deduct the tuition scholarships, grants or waivers it provided to certain veterans, thereby causing the VA to overpay NH Learning Solutions Corp for educational assistance benefits under the Post-9/11 GI-Bill for these veterans.
The lawsuit is captioned United States v. NH Learning Solutions Corp. No. 2:22-cv-13045 (EDMI). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with substantive assistance from VA OIG.
Senior Trial Counsel Christopher Wilson of the Civil Division and Assistant U.S. Attorney Anthony C. Gentner for the Eastern District of Michigan handled the matter.
The claims asserted against defendant are allegations only. There has been no determination of liability.
Mandatory Facts:
- Defendant/respondent: NH Learning Solutions Corp
- Criminal Charge: False Claims Act
- City and State: Detroit, Michigan
- Exact Date: December 2022
- Sentence or Outcome: Paid $975,000 to resolve allegations
- Dollar Amount: $975,000
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Key Facts
- State: Michigan
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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