College Agrees To Pay $295,442 To Resolve Allegations Of Improper Claims For Educational Benefit Payments

HONOLULU -- Remington Colleges, Inc., an Arkansas non-profit corporation doing business as Remington College – Honolulu Campus ("Remington College"), will pay $295,442.00 to settle certain civil claims under the federal False Claims Act in an agreement signed on July 25, 2016.

Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the United States had alleged that Remington College submitted false statements and false claims to obtain educational benefit payments from the United States Department of Veterans Affairs ("VA"). Between January 2010 and May 2011, Remington College submitted six false statements and claims in which it certified to the VA that five VA beneficiaries were enrolled as students in Massage Therapy, a VA-approved program, when in fact, the five VA beneficiaries were enrolled in Cosmetology, an unapproved program. While Remington College agreed to the settlement, it did not admit that the allegations were correct.

U.S. Attorney Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted to the federal government. She stated: "We will work tirelessly with our law enforcement partners in the VA’s Office of Inspector General ("VA-OIG") and the Federal Bureau of Investigation ("FBI") to combat fraud and protect the taxpayers’ money."

This civil investigation was conducted by the VA-OIG and the FBI. The case was handled by Assistant U.S. Attorney Rachel Moriyama.