Nimesh Shah, Education Benefits Fraud, California 2019

Nimesh Shah, owner of Blue Star Learning, pleads guilty to defrauding VA of $29M in education benefits

Nimesh Shah, owner of Blue Star Learning, a technical training school located in San Diego, pleaded guilty to defrauding the Department of Veterans Affairs out of more than $29 million in Post-9/11 G.I. Bill benefits.

According to the plea agreement, Shah devised a scheme to defraud the VA with regards to Post 9/11 G.I. Bill benefits from March 2016 to June 2019. He misrepresented to the California State Approving Agency for Veterans Education (CSAAVE) and the VA that Blue Star Learning was in compliance with the 85/15 Rule, which requires at least 15% non-veterans for each course for which the VA was paying educational benefits.

Shah created fake student files for purported non-veterans in each program and emailed the VA 48 fraudulent enrollment agreements for fictitious people he represented were non-veteran students at Blue Star Learning. He also submitted fraudulent spreadsheets to CSAAVE claiming that all of the Blue Star Learning students listed were employed in the informational technology field.

These funds were meant to provide educational benefits to veterans who served our country, not line the pockets of unscrupulous opportunists. This defendant crafted an elaborate scheme to fleece the government and taxpayers, but this case put a stop to it.

Shah is scheduled to be sentenced at a later date. If convicted, he could face up to 20 years in prison and a fine of up to $250,000.

Nimesh Shah, 1 count of conspiracy to commit wire fraud, San Diego, California, 11/13/2019.

Blue Star Learning, a technical training school located in San Diego, is owned by Nimesh Shah. The school received over $29 million in education benefits from the VA as a result of Shah's scheme.

Source: https://www.justice.gov/usao-sdca/pr/owner-local-technical-training-school-pleads-guilty-defrauding-department-veterans