According to a news release from the
"The operator of this school manipulated the system in order to fraudulently secure student aid funds without which the school could not function,"
"Our students depend on higher education institutions to prepare them for careers through a quality education. Unfortunately, some schools violate their trust through deceptive marketing practices and defraud taxpayers by giving out student aid inappropriately," ED Under Secretary
For Jessie, a
Jessie, who requested her last name not be reported, was only a few weeks away from graduating at the time of the closure, feeling like she "wasted a year at the school just to find that it was committing fraud."
The recent settlement brought her no comfort.
"I honestly just want to move on from all this -- it just makes my depression and anxiety worse when I think about it," Jessie said.
Some students, like Jessie, struggled to find other means of education since their high school diplomas were not valid.
Local students said they were left with only two real options -- to seek loan forgiveness and forfeit any acquired hours or credits, or keep their hours along with their loans.
The settlement is with Marinello's insurance carrier since B&H went out of business earlier this year, and its only remaining non-secured asset was its insurance policy issued by
The allegations against B&H first surfaced in a lawsuit filed by six former B&H employees in 2013 under the False Claims Act. As a result of the settlement announced last week, the six whistleblowers collectively will receive
Philadelphia Indemnity agreed to the civil settlement without admitting any wrongdoing by B&H and paid the settlement on
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