Continuing Education, For-Profit, Recruitment, Required, University & College - Written by on Tuesday, June 28, 2011 4:13 - 0 Comments

Justice Department Joins Suit Against EDMC

New York Times reports that the U.S. Justice Department is planning to step in on a whistle-blower lawsuit currently being brought against Education Management Corporation, one of the country’s largest for-profit college companies. The lawsuit alleges that EDMC paid recruiters based on the number of students that they convinced to enroll, an illegal practice. The company operates several for-profit colleges—including the Art Institute, Argosy University, Brown Mackie College, and South University—and is 40 percent owned by Goldman Sachs.

In federal whistle-blower, or qui tam, suits filed under the False Claims Act, private citizens file fraud complaints on behalf of the federal government, seeking to recover public money that was wrongly paid out. The lawsuits are filed under seal, giving the government an opportunity to investigate and decide whether to intervene, so the one against EDMC has yet to be made public.

- WA

Read the full story here.



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