$5 Million Settlement reached to resolve False Claims Act Allegations against The Academy for Educational Development

Settlement Amount: 
$5,000,000

A settlement has been reached to resolve False Claims Act allegations against The Academy for Educational Development (AED) who is accused of submitting false claims to the United States Agency for International Development (USAID) and for failure to adhere to contract specifications.

The government alleges that AED failed to ensure that its actions under two cooperative agreements with USAID complied with applicable regulations concerning competition in procurements, adherence to contract specifications, and supervision of its subcontractors. The government further alleges that AED failed to inform USAID that AED had discovered defects in AED’s systems of internal controls and that certain of AED’s subcontractors may have engaged in corruption and other wrongful activities.

The two cooperative agreements covered by the settlement are the Federally Administered Tribal Area Livelihood Development Program (FATA-LDP) in Pakistan and the Higher Education Project in Afghanistan. AED’s alleged misconduct resulted in substandard work and the government being overcharged for services and goods.

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