Client Alerts & Newsletters

DOJ Sets FCA Sights on Private-Sector Colleges

Sep.05.2012

On August 30, the Justice Department intervened and filed an FCA complaint against ATI Enterprises, Inc., which operates private-sector colleges, alleging that ATI knowingly misrepresented its job placement statistics to maintain its state licensure and, thus, its eligibility for federal financial aid, knowingly enrolled under-qualified students, and fraudulently kept students enrolled despite insufficient attendance and poor grades. DOJ's announcement follows other recent high profile cases in the higher education arena, including US ex rel. Oberg v. Ky. Higher Educ. in June (in which the Fourth Circuit considered whether corporate entities created by states to provide higher education financing, accused of making false claims to DOE, were "persons" subject to FCA liability) and Cuccinelli v. Univ. of Va. in March (in which the Virginia Supreme Court held that UVA was not a "person" or "corporation" under the Virginia state-equivalent FCA).

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

James J. Regan
Partner – Washington, D.C., London
Phone: +1 202.624.2930 , +44.20.7413.0011
Email: jregan@crowell.com

Stephen J. McBrady
Partner – Washington, D.C.
Phone: +1 202.624.2547
Email: smcbrady@crowell.com

Crowell & Moring LLP is an international law firm with more than 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity. The firm has offices in Washington, DC, New York, Los Angeles, San Francisco, Orange County, London, Brussels, and Shanghai.

View Desktop Site | Mobile Sitemap

Contact | Subscribe | Terms of Use | Privacy Statement | Alumni

© Crowell & Moring LLP 2020
Attorney advertising - prior results do not guarantee a similar outcome.