Whistle-Blower Sues Kaplan College

SAN ANTONIO (CN) - For-profit Kaplan College fired an instructor for complaining that inflated attendance records were reported to the federal government for possible student loan fraud, the man claims in court.

Rafael Diaz of San Antonio sued Kaplan Higher Education Corp. and Kaplan College San Antonio-Ingram in Bexar County Court.

Diaz said he was fired in June 2012 after reporting his concerns to Beth Davis, Kaplan's senior counsel for compliance. She is not a party to the case.

"It was Mr. Diaz's belief that these practices by Kaplan were an attempt to commit student loan fraud and he was taking what he believed to be the proper steps to prevent these fraudulent acts by Kaplan," the complaint states. "He also subsequently complained that he was being retaliated against in the workplace due to his previous complaints concerning fraudulent attendance records practices."

Diaz claims that in the two years he worked for Kaplan, he was a "very effective and successful instructor."

"These retaliatory actions are violations of both state and federal law, and include all possible ramifications which may result from further investigation into the subject matter of Mr. Diaz's complaint, that being fraudulent attendance records practices resulting in fraud against the federal government," the complaint states.

Diaz seeks actual and punitive damages for retaliation under the False Claims Act and for intentional infliction of emotional distress. He is represented by Paul G. Vick in San Antonio.

Kaplan did not immediately respond to a request for comment Tuesday evening. Kaplan College operates a multi-state network of campuses that offer degrees in more than 40 business, computer, health care, and legal studies programs, according to its website. It is a wholly owned subsidiary of Graham Holdings Co., fka The Washington Post, and a major profit center for the Post Co.

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