Tuesday, August 09, 2011

Member of Brian Moran-led group faces massive fraud suit

One of Brian Moran's clients faces a truly breathtaking fraud lawsuit:
The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation’s second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011.

While the civil lawsuit is one of many raising similar charges against the expanding for-profit college industry, the case is the first in which the government intervened to back whistle-blowers’ claims that a company consistently violated federal law by paying recruiters based on how many students it enrolled. The suit said that each year, Education Management falsely certified that it was complying with the law, making it eligible to receive student financial aid.
Read the entire story here.

Brian Moran's day job, where he actually makes his money, is being president of the Association of Private Sector Colleges and Universities: the lobbying group set up by Harris N. Miller to help for-profit colleges skim off billions of dollars of federal financial aid using questionable tactics. In his spare hours, Moran is the chairman of the Democratic Party of Virginia.

This massive fraud lawsuit seems like it might be a distraction for Moran at what is shaping up to be a key period of time for DPVA. For the good of the party mightn't it be a good idea for Moran to step aside so he can focus on the various fraud lawsuits faced by his clients and on the lawsuit he filed against President Obama?

A man cannot serve two masters, and Moran should have been made to choose one or the other long ago.

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