Houston Art School Must Face Student Enrollment Fraud Claims

A whistleblower adequately alleged that The Art Institute of Houston LLC and others violated the False Claims Act by faking student enrollment to improperly obtain at least $2 million in financial aid funds from the U.S. Department of Education, a Texas federal court said.

Michael Andrew Harrington, a former enrollment director, presented sufficient evidence that the defendants received financial assistance funds under the Higher Education Act for students—who didn’t ultimately attend the school— by having them fill out and submit certain documents to the government, Judge Andrew S. Hanen of the U.S. District Court for the Southern District of Texas ...