The former president and owner of a Florida nursing school that sold fake diplomas for millions of dollars to thousands of students was sentenced on July 18, 2023, to 21 months in prison. She was also ordered to pay $3.5 million. The former owner was charged in two federal cases. She pleaded guilty last year to federal charges of conspiracy to commit healthcare fraud and wire fraud in a related case.
A federal probe into the fake degree scheme led to federal charges of 25 defendants in January. Five of the defendants pleaded guilty to the charges in May.
Defendants engaged in a scheme to sell fraudulent nursing degree diplomas and transcripts obtained from accredited Florida-based nursing schools to individuals seeking licenses and jobs as registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs). The bogus diplomas and transcripts qualified purchasers to sit for the national nursing board exam and, after passing it, to obtain licenses and jobs in various states as RNs and LPN/VNs.
An estimated 7,600 nursing students paid a total of $114 million for the fake degrees between 2016 and 2021. Of those, around 2,400 students passed their licensing exams, mainly in New York, which imposes no limit on the number of times that students can take the exam. Nurses who are licensed in New York can apply to practice in other states.
Compliance Perspective
Issue
The purpose of a professional license is to protect the public from harm by setting minimal qualifications and competencies for safe entry-level practitioners. Nursing is regulated because it is one of the health professions that poses a risk of harm to the public if practiced by someone who is unprepared and/or incompetent. Boards of nursing established standards for safe nursing care and issue licenses to practice nursing. The selling and purchasing of nursing diplomas and transcripts to willing but unqualified individuals is a crime that potentially endangers the health and safety of patients.
Discussion Points
- Review policies and procedures for verifying the status of professional licenses. Update as necessary.
- Train appropriate staff to follow protocols for verification of licenses and certifications of employees at the time of hire and on an ongoing basis to ensure that those licenses remain up to date and are unencumbered. Ensure that training is provided to licensed personnel about their responsibility to maintain an active license and to notify administration should their license be suspended, expire, or if they are added to the OIG’s List of Excluded Individuals and Entities (LEIE). Document that these trainings occurred, and file the signed documents in each employee’s education file.
- Periodically audit to verify that the licensing and certifications of employees are valid and up to date. Immediately address any negative findings.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
