American Commercial College seeks to dismiss one portion of a lawsuit in which it is accused of defrauding the federal government.
Former ACC employees Shawn Clark and Juan Delgado sued on behalf of themselves and on behalf of the U.S. government, claiming that ACC defrauded the government out of $39 million. They hope to get a percentage of the money that ACC would be ordered to pay back to the government.
In February, the government decided not to take a back seat, but instead to pursue many of the claims on its own.
On Monday, ACC filed a 23-page brief neither confirming nor denying the allegations but instead saying Clark and Delgado are not longer needed and should therefore be tossed off the case. The college says that if any fraud did occur then the victim is the federal government, not the former employees.
The college freely admits that Clark and Delgado had the right to file a lawsuit under the concept of "qui tam relator," or one who sues on behalf of the government. But now, the college argues, the government has filed its own action and therefore Clark and Delgado no longer have any legal ground to go further.
The brief says that Clark and Delgado "may participate…" but "they are not the Plaintiffs and there is no need for them to remain…"
Federal agents raided the ACC location in Lubbock back in November, and The Texas Workforce Commission revoked the ACC certificate of approval for its Lubbock and Abilene locations effective on December 31, 2012.
However, no criminal charges have been filed; or if such charges have been filed they are sealed from public view.
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