A federal judge has sentenced a Nampa, Idaho, man for his involvement in a fraud scheme that stole nearly $105 million from the Department of Veterans Affairs. It was the largest such case in the Post-9/11 GI Bill program’s history, the government said.
Michael Bostock, 54, founded the California Technical Academy, a for-profit school offering technical training programs at three locations near Los Angeles and San Diego, according to the U.S. Department of Justice. Between January 2012 and June 2022, Bostock worked with two co-defendants to enroll unknowing veterans in courses, and also falsified records to make it look as if the courses had been completed.
The scheme involved using phone numbers controlled by Bostock in these records, according to court documents. When regulators called numbers to verify information, Bostock and his co-conspirators would impersonate veterans.
District of Columbia Judge Timothy Kelly sentenced Bostock to five years in prison on Monday, followed by three years of supervised release, and also ordered him to pay the amount stolen as restitution. Bostock signed an agreement forfeiting bank accounts containing nearly $2 million to the government.
Bostock and his co-defendants, Eric Bostock and Philip Abodwill, pleaded guilty to wire fraud in September. The other two men are scheduled to be sentenced Oct. 19.
California Technical Academy received more than $32 million in tuition payments, according to the Department of Justice. The Bostocks and Abodwill also took more than $72 million in education-related government benefits that were supposed to go to 1,793 enrolled veterans. Altogether, the defendants received $104,682,860 from the Post-9/11 GI Bill program, the government said.
The Post-9/11 GI Bill provides educational funding for those who have served on active duty or in the Reserves for 90 or more days after Sep. 10, 2001, according to Military.com.
“The Post-9/11 GI Bill was enacted to aid our military veterans and their families on behalf of a nation grateful for their service,” said Assistant Attorney General Kenneth A. Polite Jr. in a news release. “These frauds drain funds from a vital veterans program and undermine public faith in the administration of government.”
