[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-419287-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-419287-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","ed-announces-settlement-of-largest-student-aid-abuse-case-read-online-free","ED ANNOUNCES SETTLEMENT OF LARGEST STUDENT AID ABUSE CASE - read online free","","Education Department settled a record-setting student aid abuse case after nearly a decade of legal proceedings, citing savings of $18 million. The case centered on Lafayette Academy Inc., which allegedly improperly administered the Federal Insured Student Loan program, offered illegal inducements to lenders, and manipulated default-rate information. Federal officials pursued recovery after disputes over $15 million in insurance money, while courts delayed resolution through evidence seizures. Officials credited interagency cooperation among ED, the Justice Department, FBI, and related efforts to combat 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outcome did the Education Department announce in the largest student aid abuse case?","Question",{"text":63,"@type":64},"The department announced a settlement of the case, stating it would produce savings of $18 million.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"Which organization was central to the alleged abuses, and what program was involved?",{"text":68,"@type":64},"Lafayette Academy Inc. was the focus, and the allegations concerned improper administration of the Federal Insured Student Loan (FISL) program.",{"name":70,"@type":61,"acceptedAnswer":71},"How did ED explain the role of other agencies in resolving the case?",{"text":72,"@type":64},"ED officials credited cooperation among ED, the Justice Department, and FBI agents that investigated the matter, describing interagency coordination as essential to combating 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CASE\n\nAfter a legal struggle that has taken nearly a decade to resolve,the EducationDepartment has settled a complex student aid abuse case that it says will bringin savings of $18 million.  \nThat sum made this the largest student aid abuse case ever settled,accordingto ED。In the wake of the settlement,the department has made it clear it willpoint to the case as an example of its persistence in pursuit of fraud andabuse.  \n\"This is our intention …to see that these cases involving those who try toscrew the government are followed through,\"Richard Hastings,director of debtcollection and management assistance services for the department,said lastweek.\"This case took a lot of time.\"  \nIllegal InducementsLafayette Academy Inc.,a now-defunct Providence,R.I.,proprietary school offering correspondence courses,was the focus of therecord-setting case。According to ED,a 1975 audit by the old Health,Educa-tion and Welfare(HEW)Department revealed the school 1mproperly administeredthe old Federal Insured Student Loan(FISL)program。  \nHEW alleged Lafayette offered illegal inducements to eight Rhode Island lendersto make loans to students.In addition,it claimed Lafayette maintained animproper relationship with the banks,the banks failed to exercise care inadministering the loans,and Lafayette manipulated default rate information.  \nAlthough Lafayette pleaded guilty in 1977 to two felony criminal charges stem-ming from its activity and paid fines,the federal officials did not reach set-tlement with a number of the banks for several years.  \nSuits,Countersuits     The banks maintained the federal government owed them$15 million in insurance money under the loan program,according to ED。How-ever,ED denied those claims and filed lawsuits to successfully recover $3 mi1-lion it had already paid to the banks involved in the Lafayette case。  \n\"Suits were flying all over the place,\"according to ED spokeswoman SharonMessenger.\"It was a nightmare …a tangled web of legal paper.\"  \nThe case was further delayed by court battles over disputed government seizureof evidence.Those legal proceedings were settled by 1983,and ED officialsbegan working in concert with the Justice Department to settle with the banks.  \nHastings said settlement involved two Justice Department attorneys working(more)  \nJune 10,1985  \n# ED ANNOUNCES SETTLEMENT OF LARGEST STUDENT AID ABUSE CASE(Cont.)\n\nfull time on the case,as well as the work of 11 ED employees in Providence andthree ED staffers in Washington.\"It was a big case,\"Hastings explained.\"Itinvolved a lot of money.\"  \nOutgoing ED Assistant Secretary Edward Elmendorf credited cooperative effortsamong ED,the Justice Department and FBI agents who investigated the case。\"This type of interagency cooperation has been an essential part of our effortto combat waste,\"Elmendorf said in a statement.  \nIn the past year,ED has kept the spotlight on its debt collection efforts,having publicized its get-tough policy with individual student loan defaultersin the national media(HED,April 9)。Hastings says ED is now \"the largestcivil case client\"of the Justice Department,with 15,000 cases pending·  \nWhat's more,Hastings said other large cases involving institutions may besettled in the near future。\"There are several cases that are potentiallylarger,\"he said.--Bill Reinhard  \n# SENATOR WILL SEEK HEARINGS ON VOC ED,JOB TRAINING COORDINATION\n\nGreater coordination between the vocational education and job training communi-ties at the federal level will be among the major topics addressed in hearingsthis summer called by Sen.Dan Quayle,R-Ind.  \nQuayle,chairman of the Senate Employment and Productivity Subcommittee,hasasked interested parties to contribute opinions on whether federal administra-tion of voc ed and job training programs needs to be more centralized.  \nRenee Coe,a subcommittee aide,said the panel expects to review the currentsystem sometime this su","cbCaimLOPxQB5nRO","https://ap.wps.com/l/cbCaimLOPxQB5nRO","pdf",1833074,"English","# ED ANNOUNCES SETTLEMENT OF LARGEST STUDENT AID ABUSE CASE\n## Illegal Inducements\n## Suits, Countersuits\n## Interagency Cooperation\n# SENATOR WILL SEEK HEARINGS ON VOC ED,JOB TRAINING COORDINATION\n## Coordination and Hearings\n## Federal Structure and Fragmentation\n# RESEARCH PANEL QUESTIONS ED PROGRAMS'CONTROL OVER THEIR RESEARCH\n## Independence of Research","[{\"question\":\"What outcome did the Education Department announce in the largest student aid abuse case?\",\"answer\":\"The department announced a settlement of the case, stating it would produce savings of $18 million.\"},{\"question\":\"Which organization was central to the alleged abuses, and what program was involved?\",\"answer\":\"Lafayette Academy Inc. was the focus, and the allegations concerned improper administration of the Federal Insured Student Loan (FISL) program.\"},{\"question\":\"How did ED explain the role of other agencies in resolving the case?\",\"answer\":\"ED officials credited cooperation among ED, the Justice Department, and FBI agents that investigated the matter, describing interagency coordination as essential to combating waste.\"}]","ED ANNOUNCES SETTLEMENT OF LARGEST STUDENT AID ABUSE CASE - read online free | PDF",1790616450,18]