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Press Release
Press Release
CONCORD – United States Attorney Jane E. Young announces that Debra Kelly agrees to pay $200,000 to resolve allegations that she violated the False Claims Act by misrepresenting lawn care classes held by Natural Technologies, Inc. d/b/a NTI Organic Lawn Care Institute (“NTI”), to obtain Post-9/11 GI Bill reimbursements from the United States Department of Veterans Affairs (VA) for their veteran students.
“The Post-9/11 GI Bill educational assistance benefits are part of our promise to the brave women and men who have served our country,” said U.S. Attorney Jane E. Young. “This case is indicative of the District of New Hampshire’s continuing commitment to root out fraud involving government programs and to help safeguard the integrity of VA programs intended for the advancement and benefit of veterans.”
The Post-9/11 GI Bill is a VA educational benefit program for veterans who served on active duty after September 10, 2001. As part of that program, the VA provides tuition and fee payments directly to qualifying schools on behalf of eligible veterans. In order for a school to qualify for the program, it is required to certify to the VA that no more than 85% of the students for any particular course are receiving VA benefits. This requirement, commonly referred to as the “85-15% Rule,” is intended to prevent abuse of Post-9/11 GI Bill funding by ensuring that the VA is paying fair market value tuition rates. In addition, a school may not charge more for veterans to attend a course than it charges civilians to attend the same course. Schools that receive Post-9/11 GI Bill funding are required to certify their continued compliance with this rule and notify the VA in the event they are no longer in compliance.
As Vice President and the certifying official for NTI on VA forms, Kelly certified more than $1.2 million in GI Bill benefits from 2018-2019. Starting in at least 2018, NTI filled its classes with more than 85% veterans in violation of the “85-15 Rule.” It also charged non-veterans discounted tuition rates. Kelly certified compliance with the 85-15 ratio requirement in the student enrollment certification, which she submitted alongside claims for tuition payments for each veteran student receiving VA benefits.
During NTI’s participation in the VA benefits program, the VA conducted compliance reviews of the school. Kelly concealed NTI’s violations of the 85-15 Rule in these surveys, including the fact that NTI charged non-veterans reduced tuition. During these reviews, she provided false information to mislead VA auditors.
The VA-OIG led the investigation. Assistant U.S. Attorney Raphael Katz handled the case.
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