Multi-Million Dollar GI Bill Fraud Ring Busted: Six Charged in Orlando!

Apopka, Florida, USA - In a recent sweep that has raised eyebrows across the nation, six individuals have been charged in a major scheme that allegedly defrauded the U.S. Department of Veterans Affairs (VA) and veteran students out of millions in GI Bill tuition benefits. This indictment was announced by U.S. Attorney Gregory W. Kehoe in Orlando, shedding light on a troubling trend rife within some for-profit educational institutions that prey on vulnerable veterans seeking quality education.

The individuals implicated include a diverse group from various states: Zachary Somers Hiscock (41, Arizona), Timothy Slater (66, Illinois), Nikhil Patel (48, Missouri), Gangadhar Bathula (59, Virginia), Arif Hasan Sayed (54, California), and local resident Kyle Blake Kotecha (38, Apopka, Florida), who has signed a plea agreement. They face serious charges including conspiracy to commit wire fraud and multiple counts of wire fraud, with potential prison sentences reaching up to 20 years for each count if convicted. Each defendant allegedly played a role in circumventing VA regulations designed to protect veterans from predatory practices.

Exploitation of Veterans

According to TampaFP, the accused orchestrated a scheme primarily through for-profit, non-college degree schools that offered courses in fields like cybersecurity and computer coding, which were approved for GI Bill benefits. However, these institutions are said to have engaged in deceptive practices, such as commission-based recruitment which is strictly prohibited, and creating false records to mask the truth from VA auditors.

Kotecha, acting as a recruiter, is reported to have received around 25% of the benefits from the veteran students he enlisted, further deepening the scheme’s deceit. Alarmingly, tuition rates for these short courses, lasting only 8 to 13 weeks, soared near the cap of $24,000, yet only a tiny fraction of those enrolling ever pursued or succeeded in obtaining certifications.

The financial fallout is staggering, with the schools involved facing a forfeiture of $19,232,390 in fraudulently obtained GI Bill benefits. Kotecha has agreed to surrender $3,965,264.34, reflecting his personal earnings from this illicit operation, as per the indictment.

Related Fraud Cases

The recent indictment is not an isolated incident but part of a broader problem within the education system catering to veterans. In October 2023, as highlighted by VAOIG, the U.S. secured a civil judgment of nearly $1 million against April Tucker Beard, a barber school operator accused of falsely certifying 1,500 hours of instruction while charging veteran students exorbitant fees. This case underscores the ongoing issue of educational fraud impacting veterans.

Further emphasizing the scale of such fraud, Military Times reported the sentencing of Michael Bostock, former CEO of California Technical Academy. Bostock was convicted for defrauding the Post-9/11 GI Bill program to the tune of nearly $105 million, marking it as one of the largest fraud cases ever seen. Current and former educators involved in schemes like these often manipulate enrollment statistics, misrepresent attendance, and even impersonate students during inquiries to mask their wrongdoing.

As the investigations continue, there’s considerable emphasis from law enforcement and regulatory bodies about the need to protect the educational benefits intended for veterans. Special Agent David Spilker has cautioned against the exploitation of the GI Bill, a program that should serve the veterans, not become a vehicle for deceit.

This wave of fraud cases serves as a stark reminder that vigilance is essential in protecting the rights and resources of those who have served our country. Keeping a watchful eye on educational institutions is more critical than ever to ensure our veterans receive the quality education they deserve.