(SD)-Whistleblower Suit Alleges Fraud By National American Univ.
RAPID CITY, S.D. (AP) - A former National American University official has filed a whistleblower lawsuit in federal court that alleges the Rapid City-based for-profit higher education system defrauded the federal government out of millions through student loans.
Brian Gravely filed his suit under the False Claims Act in April, but it wasn't unsealed until Thursday. The False Claims Act allows private citizens to file lawsuits to recover money defrauded from the federal government.
In his suit, Gravely alleges that NAU rigged accreditation for its medical assisting program and unlawfully paid bonuses to employees for recruiting students. He also claims the university knowingly misrepresented student loan revenues to make it appear the system was complying with federal rules.
National American operates about three dozen campuses across the country, including one in Rapid City that also houses its central administration.. President and CEO Ronald Shape declined to comment on the suit when questioned by the Argus Leader newspaper.
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