Provider of Federally Funded Tutoring Services to Underprivileged Students at New York City Public Schools Agrees to Settle Civil Fraud Allegations | USAO-EDNY
Innovative Educational Programs, LLC (Innovative), an educational service provider, agreed to pay the United States $ 1,185,000 to resolve civil allegations that it fraudulently billed the United States for tutoring services for disadvantaged students of New York City that he never actually provided.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Terry Harris, Special Agent in Charge of the United States Department of Education, Office of the Inspector General, Regional Office of the East (DOE-OIG), the regulations announced.
“This regulation should warn education service providers that this office will aggressively protect federal programs intended to help disadvantaged students and hold accountable those who operate and manipulate these programs,” Acting US Attorney DuCharme said.
“The Office of the Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s settlement is the result of the hard work and efforts of Special Constables and OIG staff, ”said Special Agent in charge of DOE-OIG, Harris. “I am proud of their efforts, as well as those of our law enforcement partners and the United States Attorney’s Office whose actions today support the importance of upholding the integrity of federal education programs. and the taxpayer funds that support them. ”
The settlement resolves allegations that between 2009 and 2012, Innovative, a New Jersey limited liability company, fraudulently obtained federal funds to allegedly provide after-school tutoring services to underprivileged students attending public schools in New Jersey. New York underperforming. The New York City Department of Education paid Innovative $ 72.80 per hour for each student Innovative taught. This money consisted entirely of funds made available to New York State by the United States under the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001. As a condition for receiving payment for its tutoring services, Innovative was required to certify that its attendance records were true and accurate. The government investigation found that Innovative billed the government for allegedly providing after-school tutoring services to students on days when students were, in fact, absent from school.
The allegations were brought to the attention of the government by filing a complaint under the qui tam provisions of the False Claims Act (the Act). By law, private citizens can sue on behalf of the United States and participate in any recovery. The Act also allows the government to intervene in such actions, as it did in this case.
The claims resolved by the settlement are only allegations and there has been no finding of liability by a court. Innovative has expressly denied these allegations and any liability under the law.
The US case was handled by Assistant US Attorney James R. Cho of the Civil Division of the Bureau, with assistance from Affirmative Civil Enforcement Paralegal Loan Nguyen.
EDNY file n ° 12-CV-094 (FB)