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Fake study program for Israelis in Michigan allegedly defrauded U.S. of $40 million
Jewish college in Michigan enrolled thousands of fictitious and actual Israeli students in a fake study abroad program as part of a scheme to pocket federal financial aid money, court documents unsealed Tuesday claim. The documents, which include a complaint filed by a former employee and whistleblower, describe in detail how the Michigan Jewish Institute allegedly defrauded the government of more than $40 million over the course of at least ten years since about 2007. The government unsealed the records after deciding not to take on the case, but the whistleblower may proceed with her private lawyers, and the Department of Justice may decide to intervene later on. If she wins her case, the government will still collect damages. The Forward has previously reported on Michigan Jewish Institute’s receipt of high volumes of federal aid despite graduating very few students, as well as its tenuous grant eligibility and at-risk accreditation status. But details about the fake study-abroad scheme are new. Rabbi Yudi Mann, the institute’s marketing and study abroad manager, allegedly struck deals with yeshivas and seminaries in Israel to purchase demographic information about students, which staff then used without their knowledge to create dummy profiles and “enroll” them in fake classes at Michigan Jewish Institute. The institute also allegedly “invented fictitious students,” according to the complaint.
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