A Florida federal judge on Wednesday found for the federal government in its suit alleging that a now-defunct for-profit college and its CEO violated the False Claims Act by stealing government funds through falsified loan and grant applications, ordering more than $20 million in damages and civil penalties.
U.S District Judge Marcia G. Cooke entered final judgment for the United States after granting its summary judgment bid in litigation accusing FastTrain College and its owner and CEO Alejandro Amor of violating the FCA and common law by submitting fraudulent documents on behalf of students in order to secure millions in federal financial aid. She granted the government’s motion for default judgment on liability against FastTrain in October.
The judge ordered roughly $4.1 million in damages — covering the amount of federal student aid FastTrain stole through its false claims and certifications — which is trebled under the FCA, shaking out to about $12.4 million, minus any of the $1.9 million in restitution that Amor was ordered to pay in the criminal case that he coughs up. The government is also entitled to pre- and post-judgment interest, the judge held.
In addition, Judge Cooke found that the maximum penalty of $11,000 for each of the 924 false claims is appropriate, considering the seriousness of Amor’s misconduct, totaling about $10.1 million.
“FastTrain bilked the government out of millions of dollars, most of which ended up in Amor’s pockets. As for the student victims, many now carry debt that will be enormously difficult to pay off with what they can earn working the low-level jobs for which they are qualified,” Judge Cooke said. “The effects of Amor’s fraudulent acts are thus abhorrent and far-reaching.”
Florida and the federal government filed their civil suit in December 2014, alleging that FastTrain — which at its peak operated seven campuses in the state — submitted false information to make its students appear eligible for federal student aid programs under Title IV of the Higher Education Act of 1965, such as federal Pell Grants, direct loans and loans guaranteed by the federal government, according to the complaint.