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False Claims Act Presents Substantial Potential Liability and Expense for Institutions Accused of Improperly Obtaining Government Funds

Author: Ralph Gerstein.; Lois Gerstein.

Source: Volume 16, Number 03, Spring 2015 , pp.57-59(3)

Abstract:

A recent decision, U.S. v. University of Phoenix, 2014 WL 3689764 (E.D. Cal.) applied the FCA to a college in a suit alleging improprieties in government payments. Two former admissions counselors for the University of Phoenix (UOPX) and allege that UOPX submitted false claims for federal student fi nancial aid funding to the U.S. Department of Education, and in violation of the Higher Education Act (HEA) Title IV. This article explains the False Claims Act and how Universities can avoid FCA liability.

Keywords: qui tam action; 31 U.S.C. Section 3729; U.S. ex rel. Onnen v. Sioux Falls Indep. Sch. Dist.,; U.S. ex rel. Feldman v. Van Gorp and Cornell Univ. Medical College; Jallili v. Nova Southeastern University; U.S. v. Caremark; U.S. ex rel. King v. Universi

Affiliations: 1: Co-Editor; 2: Co-Editor.