Universal Helicopters and Dodge City Community College (DC3) have agreed to pay $7.5 million to settle allegations that they violated the False Claims Act with regard to making false statements to the U.S. Department of Veterans Affairs (VA) in connection with the helicopter flight instructor training program jointly run by Universal and DC3 in Dodge City, Kansas, and Chandler, Arizona, the U.S. Justice Department announced on August 15.
The VA provided financial assistance as part of the Post-9/11 GI Bill to veterans taking classes at the Universal-DC3 helicopter flight instructor program. The settlement resolves federal whistleblower allegations that from 2013 to 2018, Universal and DC3 falsely certified compliance with the VA’s “85/15 Rule,” which provides that schools must certify that classes are populated with at least 15 percent full-time students who are not receiving VA benefits in order to qualify for VA funding. The rule is intended to ensure that the VA is paying fair market value tuition on par with those paying with non-VA funds. The government alleged that Universal and DC3 achieved the 15 percent threshold by counting part-time students enrolled in only one online class per semester as full-time students, in violation of VA rules.
“One of the ways the U.S. government demonstrates gratitude to our veterans is by creating programs intended to create easier paths to accessing higher education,” said U.S. Attorney Duston Slinkard for the District of Kansas. “It’s disheartening that any institution of higher learning would submit inaccurate information in order to improperly receive funds designed to benefit those who serve our nation.”
The whistleblower complaint was brought by William Rowe, a veteran and former student in the Universal-DC3 helicopter flight instructor program. A private party can file an action on behalf of the U.S. and receive a portion of any recovery. Rowe will receive $1.125 million as his share of the settlement.