Education Industry Reporter

DOJ Intervenes in New False Claims Act Case – Based on Alleged 90/10 Violation

Posted in 90-10 Rule, Department of Education, Higher Education News, Higher Education Policy, Litigation News, Office of the Inspector General (OIG)

Dennis Cariello

According to a press release, “the United States has intervened in a whistle blower suit pending under the False Claims Act against American Commercial College Inc. (ACC), a chain of for-profit colleges located in west Texas.”  The case, United States ex rel. Clark et al. v. American Commercial Colleges, Inc ., Civil No. 5:10-CV-129-C (N.D. Tex.), alleges that ACC falsely certified compliance with the “90-10 Rule”.

Department of Justice Assistant Attorney General Tony West said, “Colleges and universities that receive federal funds must be honest with the government and follow the law.” “We will use the False Claims Act and other tools to protect students and taxpayers from for-profit institutions that fail to measure up to that standard.”  The suit was originally filed by Shawn Clark and Anthony Delgado, former ACC employees.

This matter was investigated by the Department of Justice, Commercial Litigation Branch, Civil Division; the United States Attorney’s Office for the Northern District of Texas; and the Department of Education, Office of Inspector General.