The U.S. Department of Justice has announced a settlement with Nh Learning Solutions Corp. (NHLS), requiring the company to pay $975,000. This resolution addresses allegations that NHLS submitted fraudulent claims to the Department of Veterans Affairs (VA), seeking inflated educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008, commonly known as the Post-9/11 GI Bill. A lawsuit was initially filed against NHLS in December 2022 under the False Claims Act in the U.S. District Court for the Eastern District of Michigan. NHLS, based in Detroit, offered technology-centered, non-college degree programs across various locations in the Midwest and Northeast regions of the United States.
Justice Department Takes Action Against GI Bill Fraud
Principal Deputy Assistant Attorney General Brian M. Boynton, who leads the Justice Department’s Civil Division, emphasized the purpose of the Post-9/11 GI Bill. He stated, “The Post-9/11 GI Bill was created to meet the educational needs of veterans, not to enable schools to illegally profit at the expense of American taxpayers.” Boynton added that this settlement demonstrates the Justice Department’s commitment to holding educational institutions accountable when they violate program regulations and submit inflated payment claims.
U.S. Attorney Dawn N. Ison for the Eastern District of Michigan echoed this sentiment, highlighting the nation’s promise to veterans. “The Post-9/11 GI Bill benefits represent our nation’s commitment to the brave men and women who have served our country,” said U.S. Attorney Ison. “My office is dedicated to safeguarding the integrity of federal programs to ensure that assistance reaches the veterans for whom it is intended.”
Gregory Billingsley, Special Agent in Charge of the VA Office of Inspector General (VA OIG)’s Central Field Office, also commented on the importance of protecting these funds. “Protecting Post-9/11 GI Bill education benefit funds for deserving veterans remains a high priority. Our investigators are actively working to prevent the exploitation of these programs for financial gain,” stated Special Agent in Charge Billingsley. He also expressed gratitude to the Justice Department for their collaborative efforts in the investigation.
Understanding the Last Payer Rule and Allegations Against NHLS
The Post-9/11 GI Bill is structured to provide financial support for veterans’ education by directly paying tuition and fees to educational institutions on behalf of enrolled veterans. A critical component of this program is the “last payer rule.” This rule stipulates that the VA should only pay the net cost of tuition and fees after the school has applied any scholarships, waivers, grants, or other forms of financial aid intended to reduce these costs. Essentially, the VA is intended to be the final source of payment, benefiting from any prior financial support a student receives.
However, the amended complaint filed by the government alleges that NHLS knowingly violated this “last payer rule.” The allegations state that at five NHLS locations across Illinois, Ohio, and Michigan, the company submitted false claims for inflated tuition and fees. Specifically, NHLS purportedly failed to deduct tuition scholarships, grants, or waivers provided to certain veteran students when reporting tuition and fees to the VA. This practice allegedly led to the VA overpaying NHLS for educational assistance benefits under the Post-9/11 GI Bill for these veterans.
Legal Proceedings and Collaborative Efforts
The case is officially titled United States v. NH Learning Solutions Corp., case number 2:22-cv-13045 (EDMI). The resolution achieved in this case is a result of coordinated work between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan. The VA OIG provided significant assistance throughout the investigation.
The matter was handled by Senior Trial Counsel Christopher Wilson from the Civil Division and Assistant U.S. Attorney Anthony C. Gentner for the Eastern District of Michigan.
It is important to note that the claims asserted against NHLS are allegations, and the settlement should not be seen as a determination of liability. This settlement, however, underscores the government’s commitment to ensuring правильное use of veteran education benefits and preventing fraud within these vital programs.
