NEWARK, N.J. – A Harrisburg, Pennsylvania, man was sentenced
today to 60 months in prison for his role in a scheme that fraudulently
obtained more than $24 million from the Post 9/11 GI Bill, a federal education
benefits program designed to help veterans who served in the armed forces
following the terrorist attacks on Sept. 11, 2001, U.S. Attorney Craig
Carpenito announced.
David Alvey, 51, previously pleaded guilty before U.S.
District Judge Katharine S. Hayden to an information charging him with one count
of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in
Newark federal court.
“Today’s sentence is an appropriate punishment for a man who
spent years cheating our veterans by stealing millions in tax payer funds
reserved for their education,” said U.S. Attorney Carpenito. “Instead of
receiving the quality instruction they were promised, thousands of service men
and women recruited by Ed4Mil were enrolled in unapproved online courses
without their knowledge. No veteran should be treated this way.”
“The VA’s Post 9/11 GI Bill is an invaluable and
comprehensive education program meant to advance our nation’s veteran’s
educational and professional lives as they transition to civilian life,” said
Special Agent in Charge Sean Smith, U.S. Department of Veterans Affairs, Office
of Inspector General, Northeast Field Office. “The successful prosecution of
those who defraud this important program sends a clear message that those who
seek to do VA harm will be pursued and prosecuted. VA OIG is committed to
working closely with our fellow law enforcement and DOJ partners, and grateful
for their efforts in pursuing justice in this matter”
According to documents filed in this case and statements
made in court:
The Post-9/11 GI Bill provides educational assistance to
eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition,
housing costs, and other educational expenses as long as their courses meet
certain criteria. Because these tuition benefits are paid by the United States directly
to the school, all entities involved in developing and administering the
courses must be fully disclosed to the United States in order to assess the
courses for approval.
From 2009 through August 2013, Alvey – founder and president
of Ed4Mil – along with Lisa DiBisceglie and Helen Sechrist, both of whom
previously pleaded guilty to a similar wire fraud conspiracy count, and others,
conspired to fraudulently obtain millions of dollars in tuition assistance and
other education-related benefits under the Post-9/11 GI Bill.
DiBisceglie, then an associate dean at Caldwell University,
helped Alvey get approval from Caldwell’s administration to develop and
administer a series of non-credit online courses for veterans in Caldwell’s
name. In order for the courses to be eligible for education benefits under the
Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an
application with the Veterans Administration stating that the courses were
developed, taught, and administered by Caldwell faculty and met Caldwell’s
stringent educational standards. The courses were subsequently approved, and
Alvey, Sechrist, and others aggressively marketed the courses to veterans who
were eligible to receive the benefits.
However, Caldwell did not participate in developing or
teaching the online courses. The veterans were instead enrolled in online
correspondence courses developed and administered by a sub-contractor of
Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government,
and neither were eligible to receive Post-9/11 GI Bill benefits.
Alvey and others concealed the true nature of the courses
from the government and the veterans who enrolled in the courses. Thousands of
veterans enrolled in the online courses believing they were taking courses from
Caldwell. The scheme caused the United States to pay more than $24 million in
tuition benefits under the Post-9/11 GI Bill.
“Today's action should serve as a warning to anyone who
intentionally steals or misappropriates federal student aid for their own
selfish purpose: you will be caught and held accountable for your criminal
actions,” said Debbi Mayer, Assistant Special Agent in Charge of the U.S.
Department of Education Office of Inspector General's Eastern Regional Office.
“As the law enforcement arm of the U.S. Department of Education, we will
continue to aggressively pursue those who misappropriate student aid funds for
their own purposes. America’s veterans and taxpayers deserve nothing less.”
“Today's sentencing of David Alvey is yet another example of
the FBI's aggressive posture in pursuing those who defraud the government,”
said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office.
“This case, where the victims were U.S. military veterans, is no exception.”
In addition to the prison term, Judge Hayden sentenced Alvey
to three years of supervised release and ordered restitution in the amount of
$24,024,465.65.
DiBisceglie and Sechrist are scheduled to be sentenced June
5, 2018.
U.S. Attorney Carpenito credited special agents of the U.S.
Department of Veterans Affairs, Office of Inspector General, Criminal
Investigation Division, Northeast Field Office, under the direction of Special
Agent in Charge Smith; the FBI, under the direction of Special Agent in Charge
Ehrie in Newark; and the U.S. Department of Education, Office of Inspector
General Eastern Regional Office, under the direction of Assistant Special Agent
in Charge Mayer, with the investigation.
The government is represented by Assistant U.S. Attorney
David M. Eskew, Deputy Chief of the U.S. Attorney’s Office Criminal Division,
Senior Litigation Counsel David E. Malagold of the Criminal Division, Assistant
U.S. Attorney Nicole Mastropieri of the Healthcare and Government Fraud Unit,
and Assistant U.S. Attorney Jafer Aftab of the Asset Recovery and Money
Laundering Unit.
Defense Counsel: Stacy Biancamano Esq., Chatham, New Jersey
Posts
No comments:
Post a Comment