WACO, Texas — A Career School in Killeen is soon to owe the United States a lot of money, according to a statement by the United States Attorney's Office Western District of Texas.
The ELPSS Career Institute and its director, Ricky J. Daniels Jr., were ordered in a Waco federal court to over $9 million to the United States after allegedly defrauding the Post-9/11 GI Bill Program.
The Post-9/11 GI Bill provides support to active members of the military, veterans and eligible dependents who enroll in certain education programs. Non-accredited career schools such as ELPSS must operate for at least two years before they can enroll students receiving benefits under the Bill.
The United States filed a complaint in the U.S. District Court for the Western District of Texas in October 2020. The complaint alleged that Daniels had falsely claimed to the Department of Veterans Affairs (VA) and the Texas Veterans Commission (TVC) that ELPSS Career Institute had been operating for more than two years in order to gain approval to enroll Post-9/11 GI Bill students.
The complaint alleged that ELPSS had actually been formed less than one year before applying for approval to allow GI Bill students.
The complaint also alleges that Daniels provided student files from an unaffiliated school in El Paso when the TVC visited the school to verify ELPSS' dates of operation.
The United States moved for summary judgement under the False Claims Act, which allows the government to recover three times the amount that was allegedly obtained fraudulently, plus a civil penalty for each false claim.
A magistrate judge reportedly concluded that the evidence, which was not disputed, showed that Daniels had knowingly made a false certification regarding ELPSS Career Institute's compliance with the two-year requirement.
The judge ruled that the certification was part of why the school was allowed by the VA to receive tuition reimbursement for veterans receiving benefits under the Post-9/11 GI Bill, and that the false claim caused the VA to give more than $2.3 million to the school.
The magistrate judge's report was also adopted by U.S. District Judge Alan D. Albright, who granted the U.S.'s motion, awarding them $9,024,886.99 in damages and civil penalties.
“Fraud on the Post-9/11 GI Bill threatens the integrity of education benefits provided to military veterans and their families,” said U.S. Attorney Jaime Esparza of the Western District of Texas, “This office is committed to holding accountable anyone who undermines the critical benefit programs that assist those who serve our country.”
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority,” said Acting Special Agent in Charge Patrick Roche of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “This judgment is a testament to the VA OIG’s commitment to working with the United States Attorney’s Office to hold accountable anyone who would defraud VA’s benefits programs.”
The investigation was conducted by the VA Office of Inspector General. Assistant U.S. Attorney Thomas Parnham represented the United States in the lawsuit.
The claims resolved by the settlement are still reportedly only allegations. There has been no official determination of liability so far.