Private College Student Loan

How does one file suit under the new federal "Fraud Enforcement and Recovery Act (FERA)"?

I witnessed deliberate fraud against the US Govt. (the taxpayers really) by NYS officials and employees, fraud which could easily amount into the millions of dollars, AND I suffered (and continue to suffer) retribution for refusing to participate in that fraud (whistle-blowing?) - citing my religious beliefs AND the criminal nature of the fraud. I recently read President Obama had instituted a new law to strengthen the 'Federal False Claims Act' titled the '"Fraud Enforcement and Recovery Act (FERA)'. I had previously attempted to right this wrong via the Govt. legal channels of the NYS Attorney General (Cuomo), his Commission on Human Rights, and two separate offices of the US Attorney - all refusing to even interview me let alone prosecute the criminals who were (and likely still are) committing the crime. I also attempted to secure legal assistance through the NYCLU, ACLU and several ‘Civil Rights’ law firms only to be denied. From the treatment I've received from the above mention law enforcement authorities AND staff at the US Dept Of Education (Student Aid Div.) it appears many American university/college students are being defrauded out of thousands of dollars in (otherwise) unnecessary loans they will be forced to repay - due to their schools' officials coercing them into enrolling in academic courses having absolutely no relation to the mandatory courses cited for their desired degree studies. 'Elective' courses are NOT the issue here. Many students are being forced to switch their degree programs for periods of time (often a year or more) rather than being allowed to 'take time off' when their school administrators deny them the courses mandatory for their desired degree programs. The administrators decree the students MUST remain 'enrolled' in SOME degree program during the period of time they are denied positions (in their desired programs) in-order to remain ‘eligible’ to regain a position IN their desired degree programs whenever the administrators allow them - but to do so requires additional funding. By re-enrolling in ‘alternate’ degree programs the students can remain officially ‘enrolled’ and 'eligible' for positions in their desired degree programs AND ‘eligible’ for further Govt. funding (grants and low interest loans). Once the administrators decide to permit the students to re-enter their desired degree programs these students end their enrollment in these ‘alternate’ degree programs and re-enter their desired ones. The FRAUD against the Govt. (ie: the taxpayers) lies in the fact these students are receiving grants of public funds just to remain ‘enrolled’ (so they can later regain a position in their desired degree programs) with absolutely no intent or desire to continue their studies toward graduation in these ‘alternate’ programs. The thousands of taxpayer dollars granted them to finance their attendance are therefore wasted and unavailable to OTHER students who have a genuine desire to study and graduate from THEIR desired degree programs. The FRAUD against the students (and their families) lies in the fact they are coerced into an illegal scheme through which they incur additional debt which they must begin repayment of upon leaving school – whether they attain gainful employment or not. I find it reprehensible that university/college degreed education professionals are bilking both the taxpayers AND individual students to feather their own nests - especially in light of the present dire economic conditions millions of Americans are struggling through. Many of these education ‘professionals’ pull down yearly salaries in-excess of $100,000 while many students and prospective students are scraping by on 1/5th that amount – and choosing NOT to violate the laws. Any helpful advice is appreciated. In answer to WhiteFang - how about these criminal statutes? A: Mail Fraud and Wire Fraud 18 U.S.C. 1341 and 1343 B: Presenting False, Fictitious or Fraudulent Claims 18 U.S.C. 287 C: Conspiracy to Defraud the Government 18 U.S.C. 286 D: Making False Statements to the Government 18 U.S.C. 1001 Re: WhiteFan - "but I can't even begin to see how the actions you describe violate those statutes." The college administrators are coercing students to submit 'False or Fraudulent Claims for Payment' (felony violation of the FFCA and FERA) through a federal program (FAFSA) which is a "Conspiracy to Defraud" - itself a felony. The students receive not only 'loans' (which they have to repay) but 'grants' of taxpayer funds. (see http://www.ed.gov/about/offices/list/oig/invtreports/ny112009.html ) Having signed documentation wherein the suspect states the scheme (the scheme to defraud) is grounds for 'conspiracy' charges - criminal charges which may also include 'wire and/or mail fraud'. Threatening students with denial of access to education for refusing to take part in this scheme is 'extortion' - another felony charge. (see http://en.wikipedia.org/wiki/Extortion ) Re: Poor Richard - " am unfamiliar with any sort of religious objection that would make one not cooperate with authorities" My religious objection was against participating in the fraud - NOT against reporting it to the authorities. When this scheme was first proposed to me by one of the college VPs I refused AND advised her of the FFCA having knowledge of it from my work on the Hubble Space Telescope project (testing the Primary Mirror in 1985) and my attempts to get NASA and DOJ to prosecute. Unfortunately Janet Reno made a 'deal' with the contractor which gained Clinton (Bill) a $600k 'contribution' from the PLA (People's Liberation ARMY - Red Chinese ARMY) and also allowed the contractor to give the PLA the guidance technology used in our US Air Force ICBMs. I've spent a great deal of time in my efforts to report this to the proper authorities - with the only action on THEIR part being similar to WhiteFan's - either lack of understanding or condoning the illegal actions. Re: Pennylee - Correct me if I'm wong but isn't a conviction for a felony grounds for denial to practice medicine (and other medical field occupations) in the USA? "Helping"? Only so long as the graduated student isn't eventually caught. "Happens all the time"? Seems to ME teaching this kind of behaviour in US schools is what got this country in the sorry condition it is today. I can't help but recall one of Clinton's State of the Union speeches in-which he disputed the claims of some who related the Rise and Fall of the Roman Empire to the path the USA is on. Then HE gets caught with his pants down - ethics - riiight. "Those who do not learn from history are destined to repeat it.” Re: Poor Richard - "As I stated earlier, it would be hove you to cooperate" Again - I was NOT suggesting I did not want to cooperate with the authorities. I have repeatedly tried to get them to do their jobs - but, it seems, the law enforcement community has no interest (aka: politically IN-correct?) in enforcing laws which might expose a nation-wide problem. Judging by one of PennyLee's comments this is the 'norm' in the US higher education system and who knows how many college degreed 'professionals' got where they are through schemes such as this? Recently I saw a TV report exposing high-school and college students plagurizing and getting caught through some website which instructors can use. One of these instructors flunked some students citing the violations but was overuled by the school board. This fits right-in with the 'Social Promotions' of the 1980s where US college students graduated without actually earning their grades. Known as the 'herd mentality'.

Public Comments

1. You seem to be having trouble distinguishing between unethical practices versus illegal practices. Fraud requires the act to be unlawful and for personal gain. The actions you describe may be unethical, but they don't come close to breaking any actual laws. Find a penal code or statute that they are violating and you can file a complaint, otherwise, there simply is no case and nobody will take your complaint. UPDATE: Yes, those are all nice statutes, but I can't even begin to see how the actions you describe violate those statutes. Encouraging a student to take out an unnecessary loan, as I pointed out, may be unethical, but it does not enter the realm of the unlawful nor violate the statutes you presented. Those "professionals" are not DIRECTLY profiting from the loans as none of the money goes into their pockets. That is a critical element to qualify as fraud. Indirectly profiting by gaining job security or higher status by retaining a higher student body enrollment does not meet the qualifications of fraud. As I said, to file a criminal complaint, you need to find not only the statutes that they are breaking, but then you need to demonstrate how they are breaking those statutes based upon the case law of the statutes, not your own personal interpretation.
2. In Pennsylvania a persons knowledge of an illegal act, or otherwise knowledge of the commission of a crime without taking just measures to prevent such crime (ie report to authorities)constitutes criminal conspiracy. It makes one an accessory to the crime. I am unfamiliar with any sort of religious objection that would make one not cooperate with authorities. In my experience the three larger religions Islam, Judaism, and Christianity abhor such behavior, and endorse the swift prosecution of such offenders.As a government employee it also makes one extremely culpable in cases of fraud against the government. While as a government employee it may not in and of itself be illegal (though it is sure to get you fired) having knowledge of the act and not reporting it is. In Pa its called hindering apprehension, or obstruction. I am sure NY statues are similar. I am sorry I don't have alot of sympathy for you in this matter. Failing institutions, or organizations looking to bolster their enrollment numbers have been known to engage in such fraud. Taking advantage of government student loans without any intention of paying them back, harms not only the American taxpayer, but destroys the credit of hundreds of potential students.I agree with the presidents measure on this, educational funding should be available for those who have the desire and ability to engage in post secondary education. Those who profit from the illegal act are not only an accessory, but they benefit from the proceeds of the crime. Oh and did I forget to mention they may want to be sure they payed taxes on what they stole :) If they are hard up for money I am sure the IRS would like to have a look at their tax history. My suggestion would be cut your losses, cooperate with authorities, and hopefully you may gain a new appreciation for whats legal, ethical, and outright wrong. In rebuttal, rationalizing that its just Universities being flexible does not make the law any different. People who take out loans are expected to pay them back, usually with interest. Failure to do so with another party such as a private bank, or store ends up going into civil litigation once the private company has exhausted all methods of collecting on the debt. Using public/government funds as a catch all for students who really have no intention of paying back the loan to bolster the enrollment numbers for that particular semester, or demographic is an offense against the state. Hence criminal. Going against what the government has put forth as a good faith effort to provide quality education to students who have the drive and the aptitude to finish and make good on the loans upon graduation and their subsequent employment. I am not impressed neither of you debated the law as it is, but rather what your idea of the law should be. Law enforcement nor the legal system in general deals in ideas. Debate about the codification and modification of laws is left to the people and their Representatives in Congress, interpretation rests with the judicial and the courts who determine if enough of the statues points have been met on behalf of the executive (police, DA office) to suffice as being a violation. To simply reason, everyone else is doing it so I am going to does NOT make the act any less illegal. As I stated earlier, it would be hove you to cooperate, with charges being filed means that law enforcement already has a great deal of information that would make a judge find it necessary to issue a summons. Best of luck convincing a jury what your ideas of the law should be.
3. What you see as fraud I see as the Universities being flexible and trying to help their students. From what I can glean from your question: 1. Schools don't always offer required courses every term, usually higher-level courses with very limited demand. 2. Some students are unable to finish on time because some mandatory classes aren't offered when they need to take them. 3. These students take other courses to remain on campus and eligible for loans/grants until the courses are available. As long as the school isn't deliberately not offering such classes in order to keep students enrolled, it's not fraud or even unethical. The school is working WITH the students to keep them eligible for aid. The students should use this as an opportunity to gain coursework in a peripheral field, add a minor to their major, build a resume through work-study, do an internship or research. I grew up in a college town, and I've earned 3 degrees. This happens all the time. The school could just enroll more students if they were just after the money. ADDED: I don't believe anyone is suggesting that these loans won't be repaid. They will. The students also have free will. They have other options. They are NOT committing felonies, so I fail to see how denial of medical license even comes in to this. Poor Richard: I don't believe this question is about schools (usually trade schools) convincing students who have no shot at actually completing the course to sign up for loans. That's a common fraud, both illegal and unethical. I believe the poster is talking about big Universities with many academic programs, who require students to maintain a courseload to be eligible for a specific program. If I am incorrect, please let me know. Give a specific example, with a link to the school policy. I just read the Fraud Enforcement and Recovery Act of 2009, and I believe it applies only to mortgage, commodity, and securities under programs such as TARP and economic stimulus programs. The word "student" doesn't appear. There would be other fraud legislation available. Contact your US Rep, or your state senator if it is a SUNY school. If you insist on FERA, contact Senator Leahy's office, as he was the primary sponsor.