Caldwell University in Caldwell, N.J. worked with Ed4Mil to recruit and enroll veterans in online courses. The veterans were led to believe those online courses were offered by Caldwell — they were not.
The courses were developed and taught by a sub-contractor of Ed4Mil and did not meet the educational standards VA requires of post-9/11 GI Bill online courses. But that didn't stop Caldwell from charging the post-9/11 GI Bill 10 to 30 times the original price of the course.
The university then submitted false claims for payment to the Department of Veterans Affairs in order to receive education benefits. From Jan. 2011 to Aug. 2013, Caldwell collected over $24 million in tuition from VA for these students that were never enrolled in Caldwell courses.
Thousands of veterans were enrolled in these unapproved online courses without knowing it.
“Caldwell University tried to hoodwink the Department of Veterans Affairs and, worse, veterans themselves, by claiming to offer online classes developed and provided by Caldwell that were in fact marked-up offerings by an online correspondence school,” U.S. Attorney Carpenito said. “Our veterans should never be treated this way, and we will continue to work to ensure that they receive all of the benefits that they deserve as a result of their service to the country.”
Caldwell has agreed to pay the United States $4.8 million to resolve these allegations. Three individuals have pleaded guilty in relation to the scheme. All three were sentenced and ordered to pay $24 million in restitution.
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