9th Circ. Nixes Kaplan FCA Suit Over Fake Enrollments

Law360, Washington (March 23, 2017, 3:55 PM EDT) -- A Ninth Circuit panel on Wednesday tossed a False Claims Act case against for-profit education company Kaplan, finding a former employee had failed to present evidence the company received student aid funds for "phantom students."

In an unpublished opinion, the panel said circumstantial evidence presented by Charles Jajdelski that Kaplan Inc.-owned Heritage College kept on its enrollment records and falsely "graduated" students who had dropped out of the school did not point to any single instance of a false claim made to the government, upholding a lower court's ruling in favor of Kaplan.

"While Jajdelski has described a generalized scheme to...

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