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The following is the Department of Justice’s announcement from July 22, 2011 that they have finally settled the qui tam suit with whistleblower and former employee, David Goodstein and one other whistleblower regarding the fraud called Kaplan University and in this case the ‘Surg Tech’ program which was the subject of the qui tam, or False Claims suit against the corporation.

David Goodstein was the whistleblower in this case and it was thanks to him that readers of Dailycensored and elsewhere were able to help surface this case and force the Department of Justice to finally hold the company liable after years of foot-dragging. To find articles on Kaplan you can simply search the search engine for this site, by typing in ‘Kaplan’, and you will find articles by David as well as continuous coverage of the issue. As David noted in an e-mail sent to me back in June as the settlement was being hammered out:

(“As I was saying your article got the NYT involved and that forced the DOJ and DOE to do the right thing, etc, etc. So you really were responsible for our success! Stay in touch”, personal e-mail).

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I mention this only due to the fact that many believe that alternative press plays no role in putting pressure on criminal enterprises. In fact, as one can see, they do have some effect even if it is only to create havoc for such institutions as Kaplan. There is little doubt that the DoJ would never have pursued this case without publicity.

Although the students will not end up with debt and will be compensated for the fraud perpetrated against them, thanks to the courage of David Goodstein and our ability to ‘trickle up’ the story to mainstream press, Kaplan understands that this is simply ‘chump change’ for the cost of doing business. Petty cash one might say. While the company ponies up the $1.6 million (which is little more than a nuisance payment for the multi-billion dollar enterprise) they are busy reorganizing their corporation to assure maximum profits and continued selling of this crime syndicate as a real University. With public universities crumbling under the weight of the phony austerity programs and attacks against public education, for-profit behemoths like Kaplan will grow both in size and in insidious profits that deprive students of a real education.

Here is the public notice from the DoJ regarding this case. Afterwards readers can read about the reorganization that is going on now to give the public the impression the criminal syndicate is changing for the better when nothing could be further from the truth!