What To Do If You Went To a School that was Caught Selling Fake Nursing Diplomas  in New York City

On January 25, 2023, three schools in South Florida – Siena College of Health, Palm Beach School of Nursing, and the Sacred Heart International Institute –were shut down due to an alleged wire-fraud scheme of 25 individuals handing out bogus nursing diplomas.

More than 7,600 buyers purchased fake diplomas from these schools from 2016 through 2021. With these documents, the buyers were able to take the NCLEX (National Council Licensure Examination) for registered nurses, which they passed. This allowed the nurses to get licenses in other states, such as Ohio, New York, New Jersey, Massachusetts, Georgia, Maryland, and Tennessee.

Many nurses working in health care institutions have been affected by these events. In New York, most nurses who studied in the three schools above have received emails from the Office of the Professions, requesting for the non-disciplinary surrender of their licenses. If, however, they are able to submit evidence that they earned credits from an approved nursing program that is not from the above three schools and have sufficiently demonstrated that they have met the education requirements for licensure, there is a possibility that there is no need to surrender their nursing license.

Nurses who attended those schools got messages along the lines of

• your license was issued based on evidence 
• owners were engaged in a scheme 
• your name was provided as an individual who allegedly did not actually complete the program, hours/courses and clinical training to earn a degree 
• the department requests that you surrender your license or provide alternative proof of qualification 
• non-disciplinary surrender 
• acceptable education and examination 
• you may within 14 days ….such as a transcript from an institution that is not the above three schools

At our office, we think that it will be possible for nurses who surrender their license to apply to get the license reinstated, either by showing that they completed the coursework at the three schools or by obtaining the coursework from elsewhere. But one has to be very careful in dealing with the licensing board.

The Operation Nightingale Investigation

The scheme that led to the shutdown of Siena College of Health, Palm Beach School of Nursing, and Sacred Heart International Institute was uncovered through a federal investigation known as Operation Nightingale. Federal prosecutors charged twenty-five individuals with running a wire fraud scheme that sold fraudulent nursing degree diplomas and transcripts. The diplomas allowed the purchasers to sit for the NCLEX, the national nursing licensure exam, and once they passed, they obtained nursing licenses in multiple states. State boards of nursing have spent years sorting through which graduates of these programs actually attended classes and clinical hours and which ones simply purchased credentials.

Why the New York Office of the Professions Sent Letters

The New York State Education Department's Office of the Professions has the statutory authority to grant, suspend, revoke, and refuse to renew professional licenses, including nursing licenses. When the federal investigation produced lists of names of individuals who allegedly purchased rather than earned their credentials, the Office of the Professions in New York and similar agencies in other states began reaching out to licensees whose names appeared on those lists. The letter sent in many cases asks the nurse to either surrender the license on a "non-disciplinary" basis or to submit evidence of alternative qualification, such as transcripts from a different accredited nursing program.

What "Non-Disciplinary Surrender" Really Means

The phrase "non-disciplinary surrender" sounds like a soft option. It is not soft. A surrendered nursing license cannot be used to practice nursing in New York. Even if the surrender is characterized as non-disciplinary, it must usually be reported on future license applications, employment applications, and credentialing forms in other states. The National Practitioner Data Bank, the Nursys system maintained by the National Council of State Boards of Nursing, and various employment background checks may pick up the surrender. A non-disciplinary surrender is a step that should never be taken without first understanding the long-term consequences.

Alternatives to Surrender

For a nurse who legitimately completed nursing coursework — whether at one of the three flagged schools or at another program — there are several alternatives to surrendering the license:

• Submit transcripts from a different accredited program. If the nurse has prior nursing coursework at an accredited institution, those transcripts may satisfy the educational requirements for licensure independent of the flagged school.
• Show actual completion of clinical hours. If the nurse can document the hospital, clinic, or other clinical site where they completed their hours, and the supervising nurse or instructor, the documentation may rebut the presumption of fraud.
• Request a hearing. Under the State Administrative Procedure Act, a licensee is entitled to a hearing before the agency takes adverse action. Demanding a hearing rather than acquiescing can produce a very different outcome.
• Take additional coursework. Some licensees who completed only partial coursework at a flagged school may be able to complete the missing requirements through an accredited program and submit the new transcripts.
• Negotiate a stipulated outcome. In some cases, a negotiated outcome short of full surrender — for example, a probationary period or a continuing education requirement — may be available.

Federal Implications

The Operation Nightingale investigation is criminal at its root. The owners and operators of the schools have been prosecuted. Most of the individual purchasers have not been criminally charged, but the federal government has not ruled out doing so. A nurse who purchased a fraudulent diploma and used it to obtain a license could face federal charges of wire fraud, conspiracy, false statements, and identity-related offenses. Counsel for a nurse caught up in this investigation must consider not just the licensing implications in New York but also the potential federal exposure.

What to Bring to the Consultation

• The letter or email from the Office of the Professions.
• The original notice of admission to the flagged school.
• Transcripts, syllabi, course materials, and any class notes you retained.
• Documentation of clinical placements, including names of instructors and clinical sites.
• Tuition payment records and financial aid documents.
• Any communications with the school about your enrollment, attendance, and completion.
• NCLEX scoring documentation.
• Your current employment records as a nurse, including current and prior positions, supervisors, and dates.

Time Limits and Deadlines

The letters from the Office of the Professions typically include a short deadline — often 14 days — to respond. Missing the deadline can lead to administrative action without your input. Even if you cannot fully respond within 14 days, contacting the agency promptly (preferably through counsel) to acknowledge receipt and request an extension is usually a better course than silence.

Hospital and Employer Notification

A nurse facing this kind of inquiry must also think carefully about their employer. Many hospitals and healthcare organizations require employees to report investigations, complaints, or adverse licensure actions promptly. Failure to report can be grounds for termination independent of the underlying issue. At the same time, a hasty disclosure to a chatty supervisor or HR contact can produce employment consequences before the nurse has even had a chance to respond to the licensing board. We help nurses think through these communications carefully.

Impact on Licenses in Other States

Many nurses hold or have held licenses in multiple states under the nursing licensure compact or through endorsement. An action by the New York Office of the Professions, whether disciplinary or non-disciplinary, will be reported to other states. Each state then makes its own determination about whether to take parallel action. In some cases, defending the New York case successfully prevents follow-on actions in other states; in other cases, multiple state licenses need to be defended at the same time.

Why a Lawyer Matters

The Office of the Professions deals with these letters every day. The nurse receiving the letter is dealing with the situation for the first time, often in crisis. The asymmetry of experience matters. An attorney who is familiar with the agency, the regulations, and the typical resolutions can produce a dramatically different outcome than a nurse responding alone. Cases that look hopeless can often be resolved with the license intact, the nurse continuing to practice, and the matter behind them.

Immigration Consequences

Many of the nurses affected by Operation Nightingale are immigrants or naturalized U.S. citizens. License-related issues can have immigration consequences. A criminal conviction for fraud could trigger removal proceedings for a non-citizen. A surrender of a professional license could affect an immigration sponsorship that depended on continued employment as a nurse. We coordinate with immigration counsel when a client's immigration status may be implicated.

Call Our Office

It is possible that the department has made a mistake in identifying the real from the bogus nurses. If you have received this email and need legal representation, the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY, and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].