SPOKANE, Wash. — New Horizons Computer Learning Center in Spokane Valley must pay $120,000 for allegedly defrauding the Department of Veterans Affairs G.I. Bill program.
According to the United States Attorney for the Eastern District of Washington spokesperson George Jacobs, New Horizons Spokane and its General Manager Spirit Dorris admitted that they failed to comply with certain VA requirements, resulting in receiving payments from the VA that they weren’t entitled to.
New Horizons is a for-profit school and has over 60 franchises around the country.
Dorris and the school admitted they failed to comply with the “85/15 Rule,” which requires that no more than 85 percent of any course of study be filled with individuals funded by the G.I. Bill. As part of the settlement agreement, New Horizons Spokane and Dorris admitted that between 2015 and 2018, New Horizons sought and received reimbursement from the VA in violation of the “85/15 Rule.”
The school and Dorris also admitted that between 2015 and 2018 they failed to comply with the “Last Payer Rule,” which requires that the amount of G.I. Bill reimbursement be reduced by the amount of any discounts, rebates, or other financial incentive provided to veterans. They admitted that New Horizons failed to pass discounts and rebates on to the VA, resulting in overpayment to New Horizons Spokane.
According to Jacobs, New Horizons Spokane will pay $100,000 to resolve its liability and Dorris will pay $20,950.
New Horizons Spokane and Dorris also admitted that New Horizons received, and acted on, direction from its corporate parent and franchisor, New Horizons Computer Learning Computer Learning Center, regarding the 85/15 Rule and the Last Payer Rule.
The school's attorney Jeffry Finer said the school was simply trying to help its vets, but did not realize it was not in compliance.
"The school was getting advice from the national program way to allow veterans to take the classes even if they could not pay full fair. Locally, we were letting veterans who could not pay full fair take loans that were forgiven or do other kinds of work for the school so they could stay in school. Turns out you can't do that," he said.
Finer wanted to make clear there was no finding of any fraud, adding the school and Dorris were cooperative with the investigation.
Finer says moving forward, the school will be making sure it has no more enrolled veterans than legally allowed by VA requirements.
"The fine print is still as confusing as ever, but whatever the fine print says--we're going to do it they way they say it means. So that at all times, the school has lower than 85/15 to comply. We will still have all the effort we can that's lawful to help vets," he said.
