Alta Colleges Will Pay $7 Million to Resolve False Claims Allegations

The U.S Department of Justice reported on April 20, 2009, the settlement of a False Claims Act involving Alta Colleges Inc. The Denver-based company, which has over 12,000 students at 19 campuses in six states, will pay the United States $7 million to resolve allegations that the Texas schools it owns submitted false claims to obtain federal student aid funds.

In order to receive federal student aid, it was alleged that Alta’s Texas colleges fraudulently claimed to have met particular requirements to meet the necessary state licensing requirements. The colleges allegedly mislead the state licensing agency that they had complied with Texas job-placement reporting requirements and that the schools’ interior design programs complied with the necessary requirements for a professional license.

The settlement resolves allegations that were initially filed in a federal lawsuit brought by whistleblowers under the federal False Claims Act. The False Claims Act permits private citizens to bring lawsuits on behalf of the United States and to share in any recovery. Under the settlement, the whistleblowers who initiated the lawsuit will receive $1.19 million.

If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.