Georgia Trial Lawyer Blog

Four former employees of American InterContinental University have filed a whistle blower lawsuit against the university on behalf of the federal government. The employees allege fraud that could total more than $100 million in grant money.

The Atlanta Journal Constitution has the story.

The four employees, who worked at AIU’s Dunwoody campus, claim that the university enrolled students who could not read and did not have high school diplomas. The lawsuit also alleges that the university gave recruiters bonuses based on the number of students they enrolled in violation of federal law.

In order for a college to receive certain types of aid, it must have accreditation from an organization recognized by the U.S. Department of Education. In this case, the Southern Association of Colleges and Schools (SACS) gives AIU its accreditation. SACS put AIU on probation in 2006 and 2007 for giving rewards to recruiters and for enrolling students who did not possess high school diplomas. The suit alleges that AIU attempted to deceive SACS prior to its 2007 visit by removing documents that mentioned enrollment quotas. In addition, the four employees claim that the quota system continued even after AIU had completed its probation.

The plaintiffs’ attorney Joseph Wargo believes that the fraud exceeds $100 million in grant money as well as a significant amount in federal loans. AIU has not commented on the allegations but says that it intends to fight the suit.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

The Court of Appeals of Georgia recently had to determine whether Coweta County was immune from a lawsuit in which an inmate died from an exploding tractor tire. The court ruled that the county is not immune from suit, since the county had purchased the type of insurance which waived sovereign immunity under the applicable statute.

In McDuffie v. Coweta County, the estate of prisoner Terry Rhoades sued the county for wrongful death. Rhoades had been assigned to work as an auto mechanic in the Coweta County Correctional Institute. On August 11, 2003, a tractor tire came into the shop which needed a new tube. Rhoades replaced the tube and then placed the tire back onto the tractor. During this time, Rhoades was being supervised by a prison guard; however, the guard left to use the restroom after Rhoades put the tire back onto the tractor. While the guard was away, Rhoades was getting a hose to put air into the tire. The guard then heard a loud explosion and returned to find Rhoades dead on the ground. Rhoades’ estate sued for negligent supervision by the guard.

Generally, counties are immune from suit unless the state legislature waives immunity. The version of the applicable statute in this case waives immunity if the county purchases the type of insurance defined by the statute and if the claim falls within that type of coverage. The statute states that the county must have purchased “insurance to cover liability for damages on account of bodily injury or death resulting from bodily injury to any person or for damage to property of any person, or for both arising by reason of ownership, maintenance, operation, or use of any motor vehicle.” Furthermore, the policy must provide “liability coverage for the negligence of any duly authorized . . . employee in the performance of his or her official duty.”

The appellate court found that the county did have such an insurance policy. The county’s policy covered “bodily injury. . . that results from ownership, maintenance, use, loading or unloading of a covered auto.” The policy only excluded injuries which were “intentional or expected.” The court found that negligence was included within the term “accident”, and that the term “auto” falls within the statute’s requirement of “motor vehicle.” The court then determined that a tractor does fall under “motor vehicle” for purposes of the statute. As a result, the appellate court reversed the trial court’s granting of summary judgment for the county.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

In February 2008, an Imperial Sugar Co. refinery exploded in Port Wentworth which resulted in 14 deaths. The director of human resources for Imperial has testified that the CEO instructed her shortly after the explosion to downplay the role she played in safety procedures.

The Savannah Morning News has the story.

Deborah Haban, Imperial’s director of human resources, testified in a federal investigation that shortly after the explosion she told the company’s CEO, John Sheptor, that OSHA was likely to interview her. Haban was concerned, because she had been given the task of coordinating safety programs before the explosion but lacked experience in the field of manufacturing safety. According to Haban, Sheptor told her to minimize the role she had played in safety programs to only an administrative role. Haban stated that Sheptor told her this meant “nothing more than an administrator to . . . administer the paperwork.”

When Haban was hired in 2003, she believed her job description entailed training and development. Haban testified that the company’s senior Vice President of human resources, Kay Hastings, soon informed her that her duties would expand to include safety. At that time, Imperial had shifted safety management from operations to human resources. Hastings also told Haban that she did not need to be a safety expert, but that she had to give the corporate safety director guidance and “hold him accountable to the paperwork process of creating action plans and following through.” Other sworn statements reveal that Haban participated in safety meetings with top officials and supervised the corporate safety director.

Hastings confirmed much of the testimony that Haban offered regarding her job duties. Hastings noted that Haban would deal with plant managers on safety issues and that the corporate safety director answered directly to Haban. Hastings also reaffirmed the fact that Haban had no experience or expertise in the safety field.

Since the explosions and fires, numerous lawsuits have been filed against Imperial by the victims and their families. In addition, OSHA has not decided whether to seek criminal charges against Sheptor or any other actors; however, it has sought an $8.8 million fine against Imperial for safety violations.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

Chatham County State Court Judge Hermann Coolidge has scheduled hearings for September 10 in two lawsuits filed against Imperial Sugar.

The Savannah Morning News has the story.

The suits stem from a February 2008 fire at Imperial’s Port Wentworth plant which left fourteen dead and many more injured. Around 40 lawsuits have been filed against Imperial due to the fire.

The cases of Paul Seckinger and Shelathia Harvey are expected to test the waters of litigation before the other suits go forward. Judge Coolidge has scheduled trials to begin May 10 if they are needed.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

The Illinois Attorney General filed suit against Wells Fargo last week for discriminatory and illegal mortgage lending practices against blacks and Latinos.

CNN.com has the story.

Lisa Madigan, the Attorney General of Illinois, believes that Wells Fargo has turned Latino and African-American communities into hotbeds of subprime lending. She stated that the high foreclosure rates in these communities are a direct consequence of the illegal practices committed by Wells Fargo. Madigan also alleged that white borrowers with equivalent incomes were typically given lower-cost loans.

The lawsuit goes on to complain that Wells Fargo Financial Illinois, a subsidiary, misled borrowers about the terms of their mortgages and misrepresented the pros and cons of refinancing. The suit also claims that Wells Fargo routinely “flipped” loans and confused borrowers with misleading mailings.

Madigan has asked the court to rescind all of the contracts at issue and for Wells Fargo to pay restitution to those who have been afflicted.

Wells Fargo maintains that it practices responsible lending and does not use race as a factor.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.