False Claims of Eligibility for Loans/Benefits

An accounts management firm agreed to pay more than $6.4 million to settle a qui tam suit alleging that it made false claims in connection with defaulted student loans.  According to the lawsuit, the defendant submitted improper claims for payments of commissions and incentive bonuses relating to certain defaulted student loans.  The settlement also resolved allegations that the company wrongfully claimed commissions of 18.5 percent on certain consolidated loans when it was entitled to a commission of only 10 percent.