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Home - Whistleblower Attorneys

The Justice Department plans to intervene in a whistle-blower lawsuit charging that one of the nation’s largest <a title="More articles about for-profit schools program." href="http://topics.nytimes.com/top/reference/timestopics/subjects/f/forprofit_schools/index.html?inline=nyt-classifier">for-profit college</a> companies, the Education Management Corporation, defrauded the government by illegally paying recruiters based on the number of students they enrolled, according to a <a title="More articles about the U.S. Securities And Exchange Commission." href="http://topics.nytimes.com/top/reference/timestopics/organizations/s/securities_and_exchange_commission/index.html?inline=nyt-org">Securities and Exchange Commission</a> filing on Monday.

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The filing by Education Management, known as EDMC, said “several states” also planned to join in the False Claims Act case, in federal court in Pittsburgh, alleging violations of their state laws.

This is the first time prosecutors have joined such a case, one of dozens in recent years that accuse the for-profit college industry of illegal practices devised to increase federal student aid revenue. The company, which enrolls nearly 150,000 students, operates several career-college chains, including the Art Institute, Argosy University, Brown Mackie College and South University.

To read the full New York Times article, click here.

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U.S. to Join Goldberg Kohn Suit Against For-Profit College Chain

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