Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
Study Across the Pond, LLC (SATP) and its principal, John Borhaug, have agreed to pay $1.3 million to settle allegations that they caused United Kingdom schools to submit false claims for federal student aid to the U.S. Department of Education. The lawsuit alleged that SATP and Borhaug convinced foreign schools to enter into arrangements that violated a federal ban on incentive-based compensation for student recruitment.
“Today’s settlement resolves the United States’ lawsuit against Study Across the Pond and Mr. Borhaug, who used improper incentives in an attempt to influence American students to attend foreign schools,” said United States Attorney Leah B. Foley. “My office is committed to ensuring American students are not taken advantage of for financial gain and protecting the integrity of federal student financial aid programs.”
Assistant Attorney General Brett Shumate stated, “American students deserve to make enrollment decisions free of the improper influence of third-party recruiters who pursue their own financial gain rather than the students’ best interests. Today’s settlement demonstrates the Department’s commitment to holding accountable individuals and corporate entities who violate the Incentive Compensation Ban and to protect the integrity of the federal student aid programs like the Direct Loan Program.”
Jason Williams, Assistant Inspector General for Investigation Services at the U.S. Department of Education Office of Inspector General, added: “Today’s settlement is a result of the hard work and effort of the Office of Inspector General, the U.S Department of Education, and the U.S. Department of Justice to protect and maintain the integrity of Federal student aid programs by enforcing applicable laws, including the incentive compensation ban. We will continue to work together to ensure that Federal student aid funds are used as required by law.”
The Higher Education Act prohibits institutions receiving federal student aid from compensating recruiters based on their success in enrolling students—a rule known as the Incentive Compensation Ban. This regulation aims to prevent aggressive recruitment practices driven by financial motives rather than educational needs.
According to information admitted in court documents, SATP entered contracts with UK schools allowing it a percentage share of tuition paid by American students recruited through its efforts; these tuitions were often funded by federal student aid programs. In some cases where UK schools questioned whether such agreements were allowed under U.S. law, SATP instead offered contracts labeled as “flat fee” arrangements.
Some claims resolved in this settlement were brought under whistleblower provisions in federal law known as qui tam actions—allowing private parties who report fraud against government programs to receive part of any recovery made by authorities.
U.S. Attorney Foley announced today’s resolution alongside Assistant Attorney General Shumate and DOE-OIG Assistant IG Williams. The case is being handled by Assistant U.S. Attorneys Brian LaMacchia and Alexandra Brazier from Massachusetts’ Affirmative Civil Enforcement Unit along with Trial Attorney Allison Carroll from DOJ’s Civil Division.
