New Horizons Computer Learning Center In Jacksonville And Owner Resolve GI Bill Allegations

Tampa, Fla. – United States Attorney Gregory W. Kehoe announces today that a New Horizons Computer Learning Center franchise and its owner, Coastal Corporate Training, Inc., have agreed to pay $500,000 to resolve allegations that the school overcharged the U.S. Department of Veterans Affairs (VA) by failing to support tuition waivers provided to VA-supported students, by false certifying compliance with a statutory ban on incentive compensation tied to student enrollment, and by falsely certifying compliance with a rule governing veteran enrollment.

The Post - 9/11 Veterans Education Assistance Act of 2008 (“GI Bill”) financially supports service members, veterans, and their eligible dependents who attend an education or training program at an educational institution. The longer a person serves in the military, the greater the benefits available under the GI Bill. If a school offers to waive tuition for a student receiving less than 100-percent assistance, that tuition waiver must be reported to the VA and the student’s portion reduced accordingly. Additionally, federal law prohibits participating schools from paying any commission, bonus, or other incentive payment based directly or indirectly on securing student enrollments.

Finally, a federal regulation imposes the “85/15” rule, which prohibits the VA from approving enrollment in any course for an eligible veteran not already enrolled for any period during which more than 85% of the enrolled students have all or part of their tuition paid for by the educational institution or the VA.

The United States alleged that, between 2015 and 2020, Coastal Corporate Training, Inc., which owned the New Horizons Computer Learning Center – Jacksonville franchise, failed to deduct tuition waivers from the tuition billed to the VA for students receiving less than 100-percent assistance under the GI Bill, falsely certified compliance with Title 38 by paying commissions, bonuses, or other incentive payments to enrollment representatives, and falsely certified compliance with the 85/15 rule for courses that included VA-funded students.

“The Post - 9/11 GI Bill provides a hard-earned benefit to our nations’ veterans, equipping them with the education and training of their choice for civilian careers after they have completed their military service,” said United States Attorney Gregory W. Kehoe. “My office will continue to ensure that the GI Bill funds are used as intended – to benefit American veterans.”

“This settlement demonstrates that violations of Post-9/11 GI Bill benefits regulations will not be tolerated,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will continue to work with our law enforcement partners to protect the integrity of VA’s education benefits program.”

This resolution results from a coordinated effort by the United States Attorney’s Office for the Middle District of Florida and the U.S. Department of Veterans Affairs - Office of Inspector General. Senior Litigation Counsel Mamie V. Wise handled the investigation and prosecution of the case.

The claims resolved by the settlement are allegations only. No determination of liability has occurred.