National American University faces federal lawsuit
National American University, which is headquartered in Rapid City, has been hit with a federal False Claims Act Lawsuit by a former employee.
In that suit, Brian Gravely claims the school defrauded the federal government out of millions of dollars through student loans.
The suit claims NAU was not in compliance with the accreditation requirements for its medical assisting program in Minnesota.
It claims NAU falsely reported its revenue under a rule that requires a school get no more than 90 percent of its revenue from federal student aid.
Gravely also alleges the school knew it was not in compliance with requirements when it applied for funds on behalf of students.
He also says he was improperly offered financial incentives for recruiting students.
The suit says Gravely worked at NAU from 2007 until he was fired in 2016.
He is also seeking damages, claiming he was fired in retaliation for reporting the violations to NAU management.
In an emailed response Friday afternoon, NAU CEO and president Dr. Ronald Shape says they have not formally been served with the complaint, adding, " I would point out that allegations are not facts. National American University denies any allegations of wrongdoing and takes seriously its obligations owing to its students and to regulating bodies."
NAU is a for-profit university with 35 campuses across the country.