Jacksonville's New Horizons Computer Learning Center franchise, alongside its owner Coastal Corporate Training, Inc., has agreed to cough up half a million dollars to clear the air on allegations of fleecing the U.S. Department of Veterans Affairs (VA). The settlement, which the United States Attorney for the Middle District of Florida Gregory W. Kehoe announced, is meant to address claims that the educational center improperly billed the VA for tuition waivers and thumbing their noses at federal rules designed to stop schools from hustling students through their doors through financial incentives.
Under the GI Bill, a post-9/11 measure aimed to support education and training for veterans, service members, and their dependents, the length of military service determines the slice of benefits given. Schools offering tuition waivers to students receiving less than 100-percent assistance are supposed to report these waivers to the VA and to accordingly reduce the student's portion of tuition fees. Nevertheless, between 2015 and 2020, the United States alleged that Coastal Corporate Training, Inc. didn't always do this, leaving the VA on the hook for more than they should have paid. On top of that, allegations include the learning center falsely claiming to have not doled out commissions or bonuses tied to enrollment numbers, in direct violation of Title 38, according to the Justice Department's statement.
It doesn't stop there. The “85/15” rule is another hurdle the learning center apparently didn't clear. This federal regulation puts the kibosh on the VA approving veteran enrollment in a course if it's packed to the gills with more than 85% of students having their fees footed by the educational institution or the VA itself. The government maintained that New Horizons Jacksonville played fast and loose with this rule, too.
Gregory W. Kehoe made clear the VA's stance, stating, "The Post - 9/11 GI Bill provides a hard-earned benefit to our nations’ veterans, equipping them with the education and training of their choice for civilian careers after they have completed their military service," signaling his office’s intent to continue upholding the integrity of GI Bill funds. Reinforcing this sentiment, Special Agent in Charge David Spilker of VA's OIG Southeast Field Office was quoted saying, "This settlement demonstrates that violations of Post-9/11 GI Bill benefits regulations will not be tolerated," as outlined in the Justice Department release.
Senior Litigation Counsel Mamie V. Wise from the United States Attorney's Office spearheaded the investigation and prosecution that lead to this resolution. It's essential to note that while the settlement brings the allegations to rest, it doesn't legally imply an admission of guilt from the learning center or its owners—no determination of liability was formally made.
