National American University Accused of Stealing Millions from Federal Student Aid Program

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Gravely filed the lawsuit on behalf of the federal government under the False Claims Act. Under the False Claims Act, a private citizen may essentially file a lawsuit as a whistleblower in an effort to protect the federal government. When False Claims Act lawsuits are successful, the plaintiff-citizen generally receives money from the lawsuit as compensation for their good deed. False Claims Act lawsuits are commonly filed in regards to healthcare and federal insurance programs such as Medicare.

Auditors Previously Reviewed National American University’s Medical Assisting Program

Gravely pointed out in the lawsuit that auditors previously reviewed National American University’s medical assisting program, located in Minnesota,  to determine whether it should receive national accreditation. According to the complaint, Gravely alleged that employees of the college changed student files so that the program would receive proper accreditation. However, he also went on to state that the college couldn’t find enough internships for that particular program and placed students in chiropractic offices which violated accreditation standards.