In a VA claim similar to that made against Yavapai Community College Academy agreed to pay $512,000; violated 85/15 rule
The Florida Academy in Fort Myers, Florida has agreed to pay $512,500 to the United States to resolve allegations that it made misrepresentations to the United States Department of Veterans Affairs (VA) in order to maintain its eligibility to receive VA funding under the Post-9/11 GI Bill. Among the claims made in Hamilton v. Yavapai College, et. al., is one almost identical to that made by the Government against the Florida Academy.
Beginning in 2012, the VA provided financial assistance for veterans taking classes at Florida Academy as part of the Post-9/11 GI Bill.
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 since at least 15% of the enrolled students would be paying the same rate with private funds. Schools that receive GI Bill funding are required to certify their compliance with this rule and notify the VA in the event they are no longer in compliance.
According to the Settlement Agreement, the United States alleged that, from January 1, 2017, until January 1, 2018, Florida Academy received Post-9/11 GI Bill funding during a time when they knew, or reasonably should have known, that it did not qualify because almost all of the students who were enrolled in the Heating, Ventilation, and Air Conditioning (“HVAC”) Advanced Fundamentals class were veterans, whose tuition was paid for by the VA. The settlement resolves allegations that Florida Academy made misrepresentations to the VA regarding its compliance with the 85-15% Rule.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.