The for-profit higher-education company Education Affiliates will pay the federal government $13 million to settle allegations that it submitted false claims for federal student aid for students in its programs, the U.S. Department of Justice announced on Wednesday.
The company operates 50 campuses in the United States under various trade names, the department said, including All-State Career, Fortis Institute, Fortis College, and others. The settlement resolves five lawsuits filed under the federal False Claims Act. The cases concerned institutions in five states, and included alleged violations of the federal ban on incentive compensation for college recruiters, misrepresentations of job-placement rates, and falsification of students’ applications for federal financial aid, the department said.
Read more at The Chronicle of Higher Education: http://chronicle.com/blogs/ticker/for-profit-educator-will-pay-u-s-13-million-to-settle-fraud-claims/101171