Dental Office and Its Founders and Owners Agree to Pay Over $6 Million to Resolve FCA Allegations

Dental Office and Its Founders and Owners Agree to Pay Over $6 Million to Resolve FCA Allegations

West Coast Dental Administrative Services LLC and its founders and former owners agreed to pay $6.3 million to resolve allegations that West Coast Dental and six of its affiliated dental offices in Southern California improperly received loans under the Paycheck Protection Program (PPP).

The government alleged that the dental practices submitted false certifications, claiming that the entities qualified for second-draw PPP loans, which were limited to businesses with 300 employees or less. The government further alleged that the dental practices failed to disclose common ownership of the affiliated dental practices, and that one entity sought and received forgiveness of its loan amount, even though it was a passive business operated solely for investment purposes.

Under the qui tam provisions of the False Claims Act (FCA), the relator, Relator LLC, will receive approximately $507,000 as part of the civil settlement. The case is entitled United States ex rel. Relator LLC v. West Coast Dental Services Inc., et al., Case No. 22-3812-MCS in the Central District of California.

Read the US Department of Justice’s (DOJ) press release here.

Texas Operator of Vocational Schools to Pay Over $2 Million to Resolve False Claim Allegations

Five Point Enterprises LLC (5PE), a for-profit entity in Texas and former operator of vocational schools, agreed to pay $2,049,159 to resolve allegations that it submitted false claims for educational assistance benefits to the US Department of Veterans Affairs (VA) and false certifications of compliance with the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill).

The Post-9/11 GI Bill provides educational benefits to eligible veterans and members of the armed services who enroll in qualified education and training programs.

The government alleged that 5PE violated the 85/15 Rule, which requires that no more than 85% of students enrolled in a course can have all or part of their tuition or other charges and fees paid for by the VA or school. According to the DOJ’s press release, 5PE allegedly violated the 85/15 Rule by knowingly enrolling veterans in courses at New Horizon franchises[1] where 85% or more of the students were already supported students or veterans.

The government further alleged that 5PE violated the Last Payer Rule, under which the VA will pay the actual net cost for tuition and fees after scholarships, waivers, grants, or other assistance, by failing to report to the VA the tuition reductions it provided.

Read the DOJ’s press release here.

Georgia Man Sentenced to Over Two and a Half Years in Prison for PPP Fraud

After pleading guilty to one count of wire fraud and falsification of records, Roderick Billingslea of Georgia was sentenced to two and a half years in prison and ordered to pay $591,668.89 in restitution for operating an illegal trucking business and obtaining a fraudulent PPP loan. According to the DOJ’s press release, Billingslea funded an illegal trucking enterprise with a fraudulently obtained PPP loan. In connection with the PPP loan, Billingslea falsely represented both his eligibility to operate a trucking business and the number of employees and monthly wages for his business. The PPP loan was forgiven after Billingslea provided false tax documents with his loan forgiveness application.

Read the DOJ’s press release here.

[1] 5PE operated vocational schools under a franchise agreement with New Horizons Inc.