Bepartment of Justice LLE FOR IMMEDIATE RELEASE CIV 202-633-4389 The Department of Justice today filed a civil suit against Rabbi Moshe Horowitz, Be'er Shmuel Talmudical Academy, Congregation ard Yeshiva B'er Schmuet, Inc., and Yeshiva Amod Hatorah, Inc., ali of New York City, seeking to recover more than $1 million of Department of Education funds that Horowitz and the Academy are alleged to have received improperly. The complaint, filed in U.S. District Court in Brooklyn, lleges that Horowitz made false statements to obtain Basic Lducational Opportunity Grant, Supplemental Educational Opportunity Grant, and College Work Study funds from 1976 through February 1980. Be'er Shmuel Academy falsely stated that it was a post-secondary educational institution and that its students received credit at other accredited colleges, according to the complaint. Also, grant money was received for nonexistent or incligible students, the complaint alleged. Horowitz is under criminal indictment over the matter and is currently a fugitive. Congregation d Yeshiva B'er Schmuel, Inc., and Yeshiva Amod ah, Inc., are believed to be sham corporations to which Pravitz deposited the proceeds of the illegally obtained funds, according to the civil complaint. (MORE) -2 The False Claims Act, and its statute of limitations, permits the government to seek recovery of double the more than $600,000 of funds granted from 1978 to 1980. The government also seeks return of grant money due to breach of contract from 1976 to 1980. The total sought by the suit is $1.6 million, including damages. The Department of Education (formerly the Office of Education, Department of Health, Education and Welfare) initiated termination actions (under 45 CFR 168, Subpart E) against the 8 captioned institutions on February 27, 1980. If the institutions are terminated, they would be ineligible to participate in Title IV, Higher Education Act (HEA) student assistance programs for a minimum of 18 months from the effective date of their termination (45 CFR 168.82). After 18 months have lapsed, the institutions may reapply to the Secretary of Education to participate in those programs. 1.A Each of the eight captioned institutions has refused to provide B. C. representatives of the Commissioner of Education and the Secretary Testimony of Witnesses and Introduction of Exhibits (see attached Section 434(a) of the General Education Provisions Act, as well |