HOUSTON - The Art Institute of Houston has knowingly been requesting and receiving millions in financial aid funds for students who never enrolled, a recently filed petition alleges.
Under the False Claims Act, Michael Harrington, on his own behalf and on behalf of the United States of America, filed suit against Art Institutes International, Art Institute of Houston, DC Art Institute of Houston and Studio Enterprise.
According to Harrington’s first amended complaint, the defendants knowingly requested and received at least $2 million dollars in Title IV financial aid funds from the United States Department of Education for students who never enrolled with Defendants.
When Harrington raised his concerns to his supervisor, he was immediately fired.
“Defendants received—and are believed to still receive—funds by falsifying records submitted to the federal government, refusing to return the money, and taking out loans in the name of students who have no intention of enrolling …,” the suit states.
Harrington is suing for back pay and special damages, in addition to recovery of the government funds, on behalf of the United States.” He is represented by Daly & Black attorneys Andrew Dao, John Black and Kyle Malone, along with Houston attorney Andrew Cobos of The Cobos Law Firm.
Filed in the U.S. District Court for Southern Texas, Houston Division, case No. 4:20-cv-02445