John Borhaug, FCA Violations, Massachusetts 2024

Study Across the Pond LLC, a Massachusetts-based firm, and its principal, John Borhaug, have been accused of violating the False Claims Act (FCA). The complaint, filed in the District of Massachusetts, alleges that the firm knowingly caused UK schools to submit false claims to the Department of Education for federal student aid.

The alleged violations occurred between 2015 and the present day, with Study Across the Pond recruiting American students to attend UK schools and demanding payment of a commission for their services. This commission was actually a share of the money the schools claimed from a federal financial aid program, specifically the Federal Direct Loan Program, for the benefit of American students.

The government alleges that Study Across the Pond and Borhaug created sham records to hide these arrangements, and ultimately caused foreign schools to submit false claims to the Department of Education.

The complaint also alleges that Study Across the Pond and Borhaug collaborated with at least 28 UK schools to violate the Incentive Compensation Ban, which prohibits institutions of higher education from compensating student recruiters with a commission, bonus, or other incentive payment based directly or indirectly on the recruiters’ success in securing student enrollments.

“Third-party recruiters who demand illegal financial incentives for recruiting students to institutions of higher learning, no matter where those institutions are located, undermine the integrity of our system of higher education,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “Prospective students are entitled to make their enrollment decisions without the improper influence of recruiters who pursue their own financial gain at the expense of students’ best interests.”

The lawsuit is captioned United States ex rel. Hitrost LLC v. Study Across the Pond, LLC, et al., No. 21-CV-10274-ADB (D. Mass.). The case is being prosecuted by the Civil Division’s Commercial Litigation Branch, Fraud Section.

The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. The OIG will continue to work with our law enforcement partners and pursue allegations of violations of the False Claims Act in carrying out our important public service,” said Special Agent in Charge Terry Harris of the Department of Education Office of Inspector General’s Eastern Regional Office.

Study Across the Pond and Borhaug have not yet publicly commented on the allegations. The case is ongoing, and further details will be released as they become available.

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