MedVance Institute False Claims

Case 9:09-cv-81616-WPD Document 15 Entered on FLSD Docket 06/02/2010 Page 1 of 6
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA
Fort Lauderdale Division
Case No.: 09-81616-civ-DIMITROULEAS/SNOW
BRETT STRONG,
Plaintiff,
v.
KIMC INVESTMENTS, INC., a

Delaware corporation d/b/a
MedVance Institute
Defendant.
_______________________________________/
AMENDED COMPLAINT
Plaintiff, Brett Strong, sues KIMC Investments, Inc., d/b/a MedVance Institute
(“MedVance”) for retaliatory discharge in violation of 31 U.S.C.A § 3730(h) (“the Act”).
Introduction
1. This lawsuit concerns a private, for-profit educational facility, MedVance, which
is the recipient of considerable sums of federal and state funds for tuition and for federally
backed and insured student loans. MedVance goes to great length to put students on the rolls and
to keep students enrolled, even those students who have no basis to be enrolled and in many
cases who have requested to be dropped from the rolls. As the recipient and beneficiary of state
and federal funds and loan guarantees, MedVance has a vested financial interest in enrolling as
many students as possible, no matter their qualifications or their interests. By enrolling these
students, and by not dropping students that fail to meet minimum requirements, MedVance is
committing a fraud on the government. This lawsuit is about an employee who was fired in
retaliation for discovering the fraud.
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SARELSON LAW FIRM, P.A., 1401 Brickell Avenue, Suite 510, Miami, Florida 33131, 305-379-0305, 800-421-9954 (fax)
www.FloridaEmploymentLawyerBlog.com
www.Sarelson.com
Parties, Jurisdiction and Venue
2. Plaintiff, Brett Strong, is a resident of Palm Beach County, Florida. At all
relevant times, Plaintiff was an employee of the Defendant at the Palm Spring, Florida location.
3. Defendant, KIMC Investments, Inc. is a Delaware corporation with its principal
place of business in Palm Beach County, Florida. It does business as the MedVance Institute,
with ten campuses in Florida, Tennessee, Louisiana and Texas. MedVance offers adult, post-
secondary higher education in the medical and health care fields. MedVance is the recipient and
beneficiary of state and federal funds, loans, grants, and loan guarantees.
4. Jurisdiction is based on 28 U.S.C. § 1331 (federal question jurisdiction).
5. Venue is proper in the U.S. District Court for the Southern District of Florida
pursuant to 28 U.S.C. § 89(c).
6. All administrative prerequisites have been satisfied or waived.
Facts Common to All Counts
7. Strong began working for MedVance as an instructor in March 2009.
8. Strong was promoted on May 11, 2009 as Associate Director of Education. He
reported to Louise Nicholson, MedVance’s Director of Education (DOE).
9. On June 12, 2009, Strong became concerned about MedVance’s administrative
practices because of an email he received from Nicholson. The subject line of the email was
“Grads with 0 attendance.” The email listed six students who “graduated” MedVance despite
failure to complete (and in most cases even start) their required externships. In response to the
email, Kirah Rahill, MedVance’s Regional Field Relations Specialist, wrote that she “scrub[ed]
the list” of students but that she was “not sure what status changes you will need to make, as I
am still learning the MedVance way….” Rahill further indicated that one of the students left the
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externship because it was not useful. These students failed to complete MedVance’s minimum
requirements (i.e. externship). Yet, these students are still considered MedVance graduates.
10. MedVance students that failed to commence or complete their externships still
continued to receive federal financial aid for the course nonetheless. Strong learned that
MedVance accomplished this by altering student’s graduation date to a future date on the
registrar’s software. Troubled by this, the Strong confronted Nicholson about the “grads with 0
attendence” and the failing externship program. Nicholson tersely concluded that it would be
addressed and that it is “none of your business.” Strong also indicated to Nicholson that he was
uncomfortable with changing or manipulating graduation dates. After this incident, the
relationship between Strong and Nicholson turned cold.
11. In late June or early July 2009, Strong was instructed to attend a meeting with
Adrienne Predko, MedVance’s National Director of Education. During a substantial portion of
the meeting, Strong was questioned about what actions he had taken to prevent drops. Predko
later coined the expression “Stop the Drops” as a major theme for MedVance. Brenda Greene,
Campus Director, also stressed the “Stop the Drops” theme. Strong later learned that
administrators were financially rewarded for their ability to keep students “enrolled.”
12. Between August 10, 2009 through August 24, 2009, Nicholson (Strong’s
supervisor) went on vacation. During that time period, Strong replaced Nicholson as acting
DOE. Strong dropped ten (10) students, several of whom were absent for ten (10) days or more.
13. On August 10, 2009, Strong corresponded with Brenda Green through a series of
emails where Strong was reprimanded for the “unacceptable” amount of drops. Green demanded
a “corrective action plan.” Strong explained that these students were involved in emergency
situations such as serious illness, pregnancy, or hospitalization and would be unable to fulfill
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their class obligations. As such, the students were dropped. Green responded that, “. . .
withdrawl . . . is not an option, find another way.”
14. On August 11, 2009, Green instructed Strong to “reactivate” a student whose
status was inactive. Strong refuses to comply with Green’s demand.
15. On August 19, 2009 Strong became aware of student concerns and complaints
regarding MedVance’s fraudulent business practices. Two students, Leslie Cascione and Billie
Jean Stewart, wrote a letter to MedVance Corporate indicating that they had to repeat classes
because classes were “so out of control it [was] nothing short of a riot scene.” The students
referenced MedVance’s unfair practices which forced students to re-take courses two or three
times. In order to repeat these classes, students would have to incur mounting student debt
through student loans. In their opinion, they “were being set up to fail.”
16. On August 24, 2009, Nicholson returned from vacation. Nicholson met with
Strong to discuss events which took place in her absence and told Strong that he “did things that
the higher ups are not happy about” and “some things you did upset upper management.” As a
consequence, Nicholson informed Strong that he was being “relieved as an instructor” and would
be reduced to administrative work only. Strong was involuntarily removed as an instructor mid-
semester despite outstanding student evaluations and faculty peer reviews. Indeed, Julie Slusser,
MedVance’s Director of Radiologic Technology Program, wrote Strong an email expressing
disappointment that Strong was being replaced by another instructor. Slusser stated, “I think this
is a VERY BAD idea half way through.”
17. On August 28, 2008 Strong was terminated.
Count I – Retaliation under the Act, 31 U.S.C. § 3730(h)
18. Plaintiff incorporates paragraphs 1 – 17.
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19. Plaintiff was discharged from his employment with MedVance because of lawful
acts done by the employee in furtherance of this action, including the investigation into the
unlawful acts that form the basis of this lawsuit.
20. In the event that MedVance did not actually violate the Act, Plaintiff nevertheless
had a good faith basis for believing it was doing so.
21. Plaintiff suffered damages as a result of the wrongful termination.
Demand for Jury Trial
Plaintiff demands a trial by jury on all issues so triable.
Prayer for Relief
Plaintiff prays that this Court:
A. Enters judgment in his favor against KIMC Investments, Inc.;
B. Award Plaintiff two times his back pay, interest on the back pay, litigation costs,
reasonable attorneys’ fees and costs and any additional award needed to make Plaintiff
whole;
C. Award reasonable attorney’s fees, expenses and costs and any other relief this
Court deems is appropriate.
Respectfully submitted,
/s/ Matthew Sarelson

Matthew Seth Sarelson, Esq.
Fla. Bar No. 888281
SARELSON LAW FIRM, P.A.
1401 Brickell Avenue, Suite 510
Miami, Florida 33131
305-379-0305
800-421-9954 (fax)
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www.Sarelson.com
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on June 2, 2010, I electronically filed the foregoing document
with the Clerk of the Court using CM/ECF. I also certify that the forgoing document is being
served this day on all counsel of record or pro se parties identified on the attached Service List in
the manner specified, either via transmission of Notices of Electronic Filing generated by
CM/ECF or in some other authorized manner for those counsel or parties who are not authorized
to receive electronically Notices of Electronic Filing.
___/s/ Matthew Sarelson_________

Service List
Case No.: 09-81616-civ-DIMITROULEAS/SNOW

Fla. Bar No. 888281
SARELSON LAW FIRM, P.A.
1401 Brickell Avenue, Suite 510
Miami, Florida 33131
305-379-0305
800-421-9954 (fax)
msarelson@sarelson.com
Counsel for Plaintiff
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www.Sarelson.com

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Case 9:09-cv-81616-WPD Document 15 Entered on FLSD Docket 06/02/2010 Page 1 of 6

UNITED STATES DISTRICT COURT

Case No.: 09-81616-civ-DIMITROULEAS/SNOW

KIMC INVESTMENTS, INC., a

(“MedVance”) for retaliatory discharge in violation of 31 U.S.C.A § 3730(h) (“the Act”).

1. This lawsuit concerns a private, for-profit educational facility, MedVance, which

retaliation for discovering the fraud.

Parties, Jurisdiction and Venue

2. Plaintiff, Brett Strong, is a resident of Palm Beach County, Florida. At all

3. Defendant, KIMC Investments, Inc. is a Delaware corporation with its principal

4. Jurisdiction is based on 28 U.S.C. § 1331 (federal question jurisdiction).

pursuant to 28 U.S.C. § 89(c).

6. All administrative prerequisites have been satisfied or waived.

Facts Common to All Counts

7. Strong began working for MedVance as an instructor in March 2009.

8. Strong was promoted on May 11, 2009 as Associate Director of Education. He

reported to Louise Nicholson, MedVance’s Director of Education (DOE).

9. On June 12, 2009, Strong became concerned about MedVance’s administrative

relationship between Strong and Nicholson turned cold.

Adrienne Predko, MedVance’s National Director of Education. During a substantial portion of

withdrawl . . . is not an option, find another way.”

status was inactive. Strong refuses to comply with Green’s demand.

MedVance’s Director of Radiologic Technology Program, wrote Strong an email expressing

is a VERY BAD idea half way through.”

17. On August 28, 2008 Strong was terminated.

Count I – Retaliation under the Act, 31 U.S.C. § 3730(h)

18. Plaintiff incorporates paragraphs 1 – 17.

unlawful acts that form the basis of this lawsuit.

had a good faith basis for believing it was doing so.

21. Plaintiff suffered damages as a result of the wrongful termination.

Demand for Jury Trial

Plaintiff demands a trial by jury on all issues so triable.

Prayer for Relief

Plaintiff prays that this Court:

A. Enters judgment in his favor against KIMC Investments, Inc.;

Court deems is appropriate.

/s/ Matthew Sarelson

___/s/ Matthew Sarelson_________

Matthew Seth Sarelson, Esq.

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_/s/ Matthew Sarelson_______