Former Riverside technical college CEO will get jail for $105 million VA rip-off – Orange County Register
The founder and chief govt officer of the defunct California Technical Academy in Riverside has been sentenced to 5 years in federal jail for scamming $105 million within the largest post-9/11 GI Invoice fraud case on the Division of Veterans Affairs.
Michael Bostock, 54, of Nampa, Idaho, was sentenced Monday, June 26, in U.S. District Court docket in Washington, D.C. He beforehand pleaded responsible in September 2022 to at least one depend of conspiracy to commit wire fraud.
Co-conspirators Eric Bostock, 48, of Riverside and Philip Abod are scheduled to be sentenced on Oct. 19 for his or her roles within the scheme at CTA campuses in Riverside, Temecula and Escondido.
Info was not instantly obtainable concerning the connection between Michael and Eric Bostock.
From 2012 to 2022, CTA obtained about $32 million in tuition funds and about $72.5 million in education-related advantages from the VA for 1,793 veterans enrolled on the college, in accordance with a Division of Justice sentencing memorandum.
Bostock and the 2 different defendants falsely attested to CTA’s compliance with federal rules mandating that not more than 85% of enrollees in an accredited program may very well be VA-funded. Moreover, they lied to the VA concerning the enrollment of veterans in accredited programs, class attendance and grades, prosecutors mentioned.
To hide their scheme, Bostock and the opposite defendants falsified veterans’ contact data by substituting telephone numbers bought in bulk that may ring a cellphone they managed to make sure regulators couldn’t contact the veterans.
“When regulators referred to as the falsified telephone numbers to acquire details about the varsity, the defendant and his co-conspirators would impersonate college students,” says the sentencing memorandum
Bostock and his co-conspirators additionally faked information to make it seem veterans had accomplished CTA programs, when, in reality that they had not, in accordance with prosecutors.
The memorandum says Bostock fleeced the federal government to develop the two-year school and supply his spouse, stepdaughter and brother with employment.
“This was not a one-off felony episode or non permanent lapse in judgment,” the memorandum states. “The defendant engaged on this fraudulent conduct to make sure that the VA would proceed to supply funding to CTA.”
People have filed nameless complaints with the Higher Enterprise Bureau claiming that, after federal brokers swarmed CTA, the varsity abruptly shut down and didn’t reimburse them for enrollment charges and tuition-related bills.
“My son was going to high school there sooner or later,” in accordance with a person, who mentioned CTA owes them $4,369. “I went to drop him off (and) the FBI had all staff and college students exterior on the bottom. I used to be terrified, I requested what was happening (and) the FBI agent couldn’t give me any data.”
In an announcement to federal probation officers, Bostock apologized for defrauding the VA.
“I settle for full accountability for my felony acts,” he mentioned. “There is no such thing as a excuse for offering false data to the VA. It’s significantly offensive that I abused the GI Invoice. This regulation is designed to serve America’s navy heroes. After I dedicated this crime, I betrayed my very own values and disillusioned numerous individuals. I’m very sorry I acted so recklessly.”
Prosecutors mentioned Bostock’s regret is “noteworthy,” however added that his historical past of visitors infractions and drug possession demonstrates his problem in following guidelines.
“The severity of and breadth of the fraudulent scheme that the defendant led, in addition to the defendant’s prior felony conduct, warrant giving important weight to particular deterrence,” says the criticism.
