U.S. to Settle Fraud Case With For-Profit College Chain

November 16, 2015
  • Industry News
  • for profit

Federal and state prosecutors are planning to announce a settlement with the Education Management Corporation to resolve allegations that it defrauded the government, The Huffington Post reported.

The settlement would end a long-running lawsuit that accused the for-profit college chain of illegally paying bonuses to admissions recruiters based on the number of students they enrolled.

Those allegations were brought to light in a whistle-blower lawsuit by a former employee in 2007. The Justice Department, as well as another former employee, joined the suit in 2011.

Read more at Inside Higher Ed: https://www.insidehighered.com/quicktakes/2015/11/16/us-settle-fraud-case-profit-college-chain