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</tr></tbody></table><h1>U.S. sues Princeton Review for fraud </h1><span class="byline">By Ben Rooney</span> <a href="https://twitter.com/intent/user?screen_name=cnnmoneyinvest" class="soc-twtname">@CNNMoneyInvest</a>
<span class="cnnDateStamp">May 2, 2012: 5:09 AM ET</span><div id="storytext"><div id="ie_dottop"> <img src="http://i2.cdn.turner.com/money/2012/05/01/markets/princeton-review/kids-testing.gi.top.jpg" alt="Test preparation company Princeton Review charged New York City schools for tutoring services it didn't provide, according to a federal lawsuit." border="0" height="307" width="475"><p>
Test
preparation company Princeton Review charged New York City schools for
tutoring services it didn't provide, according to a federal lawsuit.</p></div><p>NEW
YORK (CNNMoney) -- Princeton Review, the company behind the test prep
books, is being sued by the U.S. government for allegedly bilking a
federal program for underprivileged children. </p><p>According to a
civil lawsuit filed Tuesday by the U.S. Attorney in New York, Princeton
Review was paid "tens of millions of dollars" to provide after-school
tutoring for students at troubled New York City schools from 2002 to
2010.</p><p>The
lawsuit alleges that the company and a former employee, Ana Azocar,
falsified records for services rendered in order to inflate the amount
of money Princeton Review was paid under the tutoring program. </p><p>"The
Princeton Review and its employees were supposed to tutor needy
students, not cheat a federal program," said Manhattan U.S. Attorney
Preet Bharara, in a statement.</p><p>Prosecutors said Princeton Review
employees forged student signatures, falsified sign-in sheets, and
provided false certifications in order to increase the company's payment
as a provider of Supplemental Education Services (SES).</p><div class="inStoryHeading"><a href="http://money.cnn.com/2011/04/21/markets/profit_education_eisman/index.htm">For-profit colleges fighting back hard</a></div>
<p>The
company closed its SES division in 2010 and most of its current
management came on board after the alleged activity occurred, according
to a Princeton Review spokesperson.</p><p>"We are working closely with the U.S. Attorney's office to resolve this matter expeditiously," the spokesperson said.</p><p>According
to the lawsuit, Princeton Review gave bonus payments to Azocar, a
director at one of the company's tutoring locations, totaling more than
$16,000 over two years because her employees consistently reported high
attendance.</p><p>Attempts to identify and contact a lawyer for Azocar were unsuccessful. </p><p>Prosecutors charged that Princeton Review's daily attendance forms and invoices were "replete with falsifications."</p>
<p>In
particular, Princeton Review was paid for services on days when
official records show that students were absent or school was closed,
according to the lawsuit. </p><div class="inStoryHeading"><a href="http://economy.money.cnn.com/2012/03/30/making-student-loan-payments-more-managable/">Making student loan payments more managable</a></div><p>On
New Year's Day in 2008, Princeton Review is accused of billing the New
York Department of Education for tutoring 74 students at a middle school
in the Bronx when the school was closed and there were no SES classes.
</p><p>In another example, a student was signed in as present at a
Princeton Review tutoring class for four days when the student was
actually on vacation in Mexico, according to prosecutors.</p><p>The
alleged activity was brought to Princeton Review's attention in 2006,
but the company failed to take action to correct the misconduct,
according to prosecutors.</p><p>Princeton Review (<span class="inlink_chart"><a class="inlink" href="http://money.cnn.com/quote/quote.html?symb=REVU&source=story_quote_link">REVU</a></span>)
provides test preparation services for college entrance exams and
publishes study guides. It is not affiliated with Princeton University. <a href="http://money.cnn.com/2012/05/01/markets/princeton-review/index.htm#TOP"><img src="http://i.cdn.turner.com/money/images/bug.gif" alt="To top of page" border="0" height="7" width="7"></a></p>
<div class="storytimestamp">First Published: May 1, 2012: 6:16 PM ET</div></div><br clear="all"><br>-- <br>Art Deco (Wayne A. Fox)<br><a href="mailto:art.deco.studios@gmail.com" target="_blank">art.deco.studios@gmail.com</a><br>