For-Profit College Settles Whistleblower Lawsuit Alleging Education Fraud

Kaplan College to refund over $1 million in financial aid amid allegations of unqualified instructors teaching class

Kaplan Inc. (Kaplan), a leading and national for-profit education company with campuses across Texas, has reached a $1.3 million civil settlement with the U.S. Department of Justice (DOJ). This agreement resolves whistleblower claims that the school employed unqualified instructors at its campuses in Texas.

In 2012, Leslie Coleman, a former Kaplan employee, blew the whistle on the schools fraudulent financial aid practices by filing a qui tam lawsuit under the False Claims Act. The lawsuit accused Kaplan of employing unqualified instructors to teach medical assistant courses at its San Antonio campuses. The lawsuit also alleged that Kaplan knowingly accepted federal tuition funds for courses taught by individuals who did not meet minimum requirements mandated by Texas law.

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