United States ex rel. Shoe v. Oral Roberts University,
District of South Carolina.
GBB attorney’s brought this False Claims Act case against Oklahoma based ORU alleging that the university had fraudulently billed the Department of Education after violating the federal ban on incentive-based compensation. The whistleblower contended that ORU hired Shoe Inc., a student recruiting firm, then paid them with a portion of the tuitions of recruited students. Title IV of the higher education act prohibits any university receiving federal student aid from compensating recruiters based on the number of students successfully recruited. Maurice Shoe, the whistleblower and co-owner of Shoe, was awarded $45,000.