The Academic Advantage Reaches a Settlement with the New York U.S. Attorney’s Office Over New Employees’ Fraud
New York, NY, April 22, 2014 --(PR.com
)-- The Academic Advantage reached a settlement to pay $2 million after an investigation regarding allegations of misconduct of federal funds in the government-funded tutoring programs it provided for students in the public schools in NYC. It involved nine new employees who had been brought over from The Princeton Review to work at The Academic Advantage.
Sean Cenawood, a partner at Dentons US LLP and the former Chief of the Civil Frauds unit in the U.S. Attorney’s office for the Southern District of New York (former head of the same unit that lead the investigation), who represented The Academic Advantage in its negotiations with the government said, “These new employees came over from The Princeton Review and committed this fraud without the knowledge of any of The Academic Advantage’s officers. The Academic Advantage did the right thing by settling this matter and moving forward.”
The Academic Advantage was unaware of the scope of federal inquiries into other tutoring providers at the initial opening of its New York office; these investigations were not open to public record until its conclusion. One of these investigated was The Princeton Review, which committed to paying the government up to $10 million for misconduct, ended up closing its tutoring service, Supplemental Education Services with the government and subsequently these employees joined The Academic Advantage in its New York office.
The case was only brought against the employees of the New York branch of The Academic Advantage, and those who were only formerly employed by The Princeton Review. The Academic Advantage, which was in business in numerous states across the country, took government compliance very seriously and was committed to meeting all state and federal requirements. The Academic Advantage’s top priority was to put students and families first and employ a high quality instructional model focused on academic success. The Academic Advantage would like to formally thank the U.S. Attorney’s office for their due diligence in bringing this matter to justice and closing the investigation by prosecuting the nine former Princeton Review employees in an expedited fashion.
Silver Public Relations