A for-profit school offering computer training courses in McLean and Richmond, Virginia and its CEO have agreed to pay $450,000 to settle allegations they paid bonuses to consultants based on their success in securing enrollments of students receiving military veterans benefits.
The Department of Justice announced the settlement with Pinellas Corporation and its sole owner Paul Giordano, of Washington, D.C., on Feb. 13.
Under the Post-9/11 GI Bill, military veterans can receive tuition assistance from the Department of Veterans Affairs to enroll as students at approved educational institutions. Their tuition assistance is paid directly to the educational institution.
Education institutions could not be approved to enroll students receiving those benefits “if the educational institution provides any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance.”
According to the DOJ release, from 2015 through 2016, Pinellas and New Horizons Computer Learning Center Of Washington, D.C., at Giordano’s direction, paid bonuses to consultants who recruited students receiving Post-9/11 GI Bill financial assistance based on their success in securing enrollments.
The lawsuit also alleged that, between Aug. 15, 2015, and Dec. 31, 2016, Pinellas falsely certified that it had exercised reasonable diligence in meeting all applicable requirements of Title 38 of the U.S. Code in submitting nearly 1,000 claims to the VA for Post-9/11 GI Bill payments.
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The government alleged that because of the false certifications Pinellas made to the VA, the VA paid tuition payments to Pinellas that Pinellas was not eligible to receive, in violation of the Post-9/11 GI Bill and the False Claims Act.
Reach Julia LeDoux at Julia@connectingvets.com.
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