Austin-based Five Point Enterprises LLC has settled with the United States government to the tune of over $2 million after allegations of submitting false claims to the Department of Veterans Affairs surfaced. The settlement, coming in at precisely $2,049,159, resolves the accusations that 5PE deliberately enrolled veterans into vocational courses in violation of VA education benefits regulations, as reported by the U.S. Attorney's Office official announcement on August 8.

"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," explained Principal Deputy Assistant Attorney General Brian M. Boynton regarding the program's significance. The alleged misconduct, which took place between 2015 and 2020, centers around 5PE's operations of vocational schools across the nation under a franchise agreement with New Horizons Inc. Enrolling students, the company en masse reportedly failed to adhere to the so-called "85/15 Rule," which ensures no more than 85% of students in any course are funded by the school or VA benefits, creating a space for educational merit to flourish beyond mere federal aid dependence, as per the U.S. Attorney's Office.

This settlement marks a focused effort to preserve the integrity of the VA's educational programs. U.S. Attorney Jaime Esparza for the Western District of Texas passionately conveyed a commitment to protecting federal programs and education benefits. Esparza, along with partners, stands ready to hold those accountable who engage in fraudulent practices at the cost of America's veterans. Alongside the deceptive enrollment practices, 5PE is accused of not reporting tuition reductions to the VA, contravening the Last Payer Rule, which dictates the VA should be the last source of tuition payment after all other scholarships or waivers are applied.

Acting Special Agent in Charge Molly King of the Department of Veterans Affairs Office of Inspector General (VA OIG) Northwest Field Office emphasized the consequence of the settlement: "This settlement demonstrates that violations of Post-9/11 GI Bill benefits regulations will not be tolerated." With a restless diligence, the VA OIG continues to work closely with law enforcement partners to ensure the protection and integrity of the VA's education benefits program. Engaged in the investigation and providing substantial assistance, the VA OIG united with the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney's Office for the Western District of Texas handled the case, as detailed in the Justice Department's briefing said by Senior Trial Counsel Christopher Wilson and Assistant U.S. Attorney Thomas A. Parnham Jr.

It's important to note, the claims made against Five Point Enterprises are just allegations at this point—no formal determination of liability has been confirmed. This comprehensive investigation into 5PE's practices leaves the company with a significant financial liability and a message to the wider education sector about the importance of adhering to federal guidelines designed to protect the rights and earnings of those who have served the nation.