Ex-Caldwell University Admin Scammed Veterans, Taxpayers Out Of $24M

CALDWELL, NJ — A pair of women have admitted their roles in a conspiracy that fraudulently obtained more than $24 million from the Post-9/11 GI Bill, a federal education benefits program designed to help veterans who served in the armed forces following the 9/11 attacks, prosecutors announced Tuesday.

According to the U.S. Attorney’s Office (District of NJ), Lisa DiBisceglie, 56, of Lavallette, a former associate dean of the Office of External Partnerships at Caldwell University, and Helen Sechrist, 61, a former employee of the Pennsylvania-based company Ed4Mil LLC, pleaded guilty before a U.S. district judge in Newark federal court to conspiracy to commit wire fraud.

“DiBisceglie and Sechrist were part of an elaborate bait-and-switch scheme that stole millions of dollars in Post-9/11 GI Bill tuition assistance,” Acting U.S. Attorney William Fitzpatrick said. “Instead of receiving a quality education under the Caldwell University brand, the veterans that were recruited by Ed4Mil were enrolled in unapproved online courses without their knowledge, all while members of the conspiracy profited from their hard-earned benefits.”

A Caldwell University spokesperson provided Patch with the following statement on Tuesday:

"More than seven years ago, Caldwell University began a contractual relationship with ED4MIL, a relationship Caldwell University ended in 2013. Caldwell University understands that, today, one of its former employees pleaded guilty to a wire fraud conspiracy in connection with unauthorized actions she took while employed by the university and continued after she left the university and joined Ed4Mil. Neither Caldwell University nor its current administration or staff is accused of wrongdoing, and only learned of the conduct after the former employee left the school to work for Ed4Mil. Caldwell University has and will continue to cooperate with the government until this investigation is concluded."

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According to prosecutors, the Post-9/11 GI Bill provides educational assistance to eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition, housing costs, and other educational expenses as long as their courses meet certain criteria.

“Due to the fact that these tuition benefits are paid by the United States directly to the school, all entities involved in developing and administering the courses must be fully disclosed to the United States in order to assess the courses for approval,” prosecutors stated.

From 2009 through August 2013, Ed4Mil founder and president David Alvey, 50, of Harrisburg, Pennsylvania, along with DiBisceglie, Sechrist and others, conspired to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits under the Post-9/11 GI Bill, prosecutors said.

Prosecutors stated:

“As part of the conspiracy, DiBisceglie helped Ed4Mil get approval from Caldwell University’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell University’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application with the Veterans Administration stating that the courses were developed, taught, and administered by Caldwell University faculty and met Caldwell University’s stringent educational standards. As a result, the courses were subsequently approved, and Sechrist, Alvey, and others aggressively marketed the courses to veterans who were eligible to receive the benefits.”

However, Caldwell University did not participate in developing or teaching the online courses. Instead, the veterans were ultimately enrolled in online correspondence courses developed and administered by a sub-contractor of Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government, and neither were eligible to receive Post-9/11 GI Bill benefits, prosecutors said.

At all times during the conspiracy, DiBisceglie, Sechrist, Alvey, and others concealed the true nature of the courses from the government and the veterans who enrolled in the courses, prosecutors stated.

“Thousands of veterans enrolled in the online courses believing they were taking courses from Caldwell University,” prosecutors stated. “Altogether, the scheme caused the United States to pay over $24 million in tuition benefits under the Post-9/11 GI Bill.”

“Scams like this steal money from hardworking taxpayers and legitimate students – and in this case, our veterans – and that is completely unacceptable,” said Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Northeastern Regional Office.

The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 24, 2018.

The charge and allegations against Alvey are still pending, prosecutors said.

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