OIG Investigative Reports, Settlement reached to resolve alleged violations of the False Claims Act regarding federal student loans Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigation Report U.S. Department of Justice United States Attorney Eastern District of Pennsylvania 615 Chesnut Street Suite 1250 Phiadelphia, Pennsylvania 19106-4476 (215) 861-8200 October 3, 2008 NEWS RELEASE Acting United States Attorney Laurie Magid today announced the government has reached a settlement with Steven Davis, of Philadelphia, and Fuschia Davis, of Salt Lake City, Utah, to resolve alleged violations of the False Claims Act regarding federal student loans. Fuschia Davis and her father Steven will pay the United States $54,000 to resolve allegations that Fuschia Davis falsified federal student financial aid applications in order to obtain college financial aid from the Department of Education (“DOE” ) for her own benefit, and that Steven Davis, aware of his daughter’s actions, encouraged her. The Higher Education Act authorizes the United Sates to offer student financial assistance, including Pell Grants and subsidized or federally insured student loans. These programs are administered by DOE and provide federal monies to eligible post-secondary students in financial need. Eligibility is based on an evaluation of income and assets of the student’s family. If a student has been supported by his or her parents in the previous year, then the student is considered a dependent student and both parents’ income for the previous year is used to determine financial need.According to the allegations laid out in the complaint, Fuschia Davis created a false identity and submitted a false application minimizing her family income available for college, thus qualifying Fuschia Davis for federal student financial aid to which she was not entitled. Steven Davis was aware and encouraged the plan. The case was investigated by Agent Kristy Smith of the DOE’s Office of Inspector General and was handled by Assistant United States Attorney Virginia R. Powel.United States Attorney’s Office Contact: Patty Hartman Eastern District, Pennsylvania Media Contact Suite 1250, 615 Chestnut Street 215-861-8525 Philadelphia, PA 19106 Copies of News Memos and Related Documents can Also be Found at http://www.usdoj.gov/usao/pae Top Printable view Share this page Last Modified: 10/10/2008 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
Settlement reached to resolve alleged violations of the False Claims Act regarding federal student loans. Philadelphia, PA , October 03, 2008
Published by the Department of Education, Office of Inspector General on 2008-10-03.
Below is a raw (and likely hideous) rendition of the original report.