ACC fires back in fraud lawsuit with allegations of its own - KCBD NewsChannel 11 Lubbock

ACC fires back in fraud lawsuit with allegations of its own

LUBBOCK, TX (KCBD) -

New court records filed Monday leave no doubt that Lubbock-based American Commercial College denies allegations of fraud.

Last week ACC filed a motion that asked to have some of the allegations dismissed, but in the earlier filing the college neither admitted nor denied the allegations.

Specifically, ACC is accused of cheating the government out of $39 million in financial aid to which it was not entitled. Two whistleblowers, both former employees, filed a lawsuit and in mid-March the federal government joined in.

ACC has been under public scrutiny since November of 2011, when federal agents raided the Lubbock campus. That raid, it turned out, was related to some of the same allegations in the lawsuit.

In Monday's filing, ACC says it never did anything to manipulate records to make maintain the requirements for federal funding. Specifically at issue is whether the school followed the so-called 90/10 rule. Up to 90 percent of ACC's funding could come from government grants and loans. But at least 10 percent had to be private funding, such as students paying their own tuition without a government-backed student loan.

ACC leveled some allegations of its own against the whistleblowers Juan Delgado and Shawn Clark. It says the two acted as rogue employees, and therefore if there was wrongdoing the two are not entitled to any money in their lawsuit.

Effective December 31, 2012, the Texas Workforce Commission has revoked ACC's certificate of approval for Lubbock and Abilene locations. The school has the right to appeal between now and then.

Copyright 2012 KCBD. All rights reserved.

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