A settlement has been reached to resolve False Claims Act Allegations against Marinello Schools of Beauty.
The allegations arose by a lawsuit claiming Marinello Schools of Beauty defrauded the federal government by falsifying student loan applications and exaggerating claims about enrollment and post-graduate employment.
According to the whistleblowers, Marinello and four of its executives engaged in six broad schemes, that included, fabrication of high school diplomas, manipulation of student attendance records to make ineligible students eligible to receive financial aid, and the manipulation and misrepresentation of graduation and licensing and job placement statistics.
The Department of Education also accused the school of not providing students with the necessary equipment to train, even though the school charged students between $2,500 and $2,750 for books and supplies.
Marinello’s attorney released a statement stating the school “strongly and categorically” deny the allegations made in the suit, calling them “utterly false” and adding that the settlement did not constitute an admission of wrongdoing.
The whistleblowers will receive a share of the settlement proceeds as a reward for prosecuting the case.
