{"id":17447,"date":"2015-11-16T15:33:40","date_gmt":"2015-11-16T23:33:40","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=17447"},"modified":"2015-11-16T15:33:40","modified_gmt":"2015-11-16T23:33:40","slug":"for-profit-college-ordered-to-pay-95-5-million-for-illegal-recruiting-and-fraud","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=17447","title":{"rendered":"For-Profit College Ordered to Pay $95.5 Million for Illegal Recruiting and Fraud"},"content":{"rendered":"

PENNSYLVANIA<\/strong><\/h2>\n
\n

\"Veterans<\/a>The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.<\/span><\/p>\n

Officials described the $95.5 million settlement \u00a0with\u00a0Education Management Corp<\/strong>. or EDMC, the second-largest for-profit education company in the country as a\u00a0“landmark global” agreement, officials said.<\/span><\/p>\n

Whistleblowers will get paid $11.3 million out of the $95.5 million for bringing this case to light through a private lawsuit, according to authorities.<\/span><\/p>\n

EDMC, which is headquartered in Pittsburgh, Pennsylvania, operates nationwide under four post-secondary school brands: the Art Institutes, South University, Argosy University and Brown-Mackie College.<\/strong>\u00a0 <\/span><\/p>\n

Student enrollment across EDMC\u2019s school brands exceeds 100,000 students.<\/span><\/p>\n

The U.S. Department of Justice said EDMC violated\u00a0 Title IV of the Higher Education Act or HEA along with state statutes.<\/span><\/p>\n

\u201cThis historic resolution exemplifies the Justice Department\u2019s deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation,\u201d said Attorney General Loretta E. Lynch.<\/strong><\/span><\/p>\n

Adding, \u201cOperating essentially as a recruitment mill, EDMC\u2019s actions were not only a violation of federal law but also a violation of the trust placed in them by their students – including veterans and working parents – all at taxpayer expense. \u00a0In the days ahead, we will continue working with our invaluable partners at the U.S. Department of Education, through initiatives like the inter-agency task force on for-profit education, to ensure that our nation\u2019s aspiring learners are finding and gaining access to educational opportunities that are right for them.\u201d<\/span><\/p>\n

The primary allegation was that EDMC unlawfully recruited students \u00a0by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled.<\/span><\/p>\n

\u201cCompanies cannot enrich their corporate coffers at the expense of students seeking a quality education, or on the backs of taxpayers who are funding our critical financial aid programs,\u201d said U.S. Attorney David J. Hickton of Pennsylvania.<\/strong>\u00a0 \u201cToday\u2019s global settlement sends an unmistakable message to all for-profit education companies: the United States will aggressively ferret out fraud and protect innocent students and taxpayer dollars from this kind of egregious abuse.\u201d<\/span><\/p>\n

The settlement resolves four separate FCA lawsuits filed in federal court in Pittsburgh, Pennsylvania,<\/strong> and Nashville, Tennessee<\/strong>, under the qui tam, or whistleblower,<\/strong> provisions of the act.<\/span><\/p>\n

The act\u00a0allows\u00a0private individuals to sue on behalf of the government for false claims and to share in any recovery, according to authorities.<\/span><\/p>\n

Officials said the global settlement with EDMC also resolves three additional federal FCA lawsuits in which the government did not intervene, all involving various violations of Title IV of the HEA by EDMC.<\/span><\/p>\n

Finally, officials said the global settlement resolves a consumer fraud investigation by a consortium of 40 state Attorneys General, into EDMC\u2019s deceptive and misleading recruiting practices. \u00a0<\/span><\/p>\n

The consumer fraud settlement requires EDMC to undertake various compliance obligations, including detailed disclosure obligations to students; prohibitions on deceptive or misleading recruiting practices and oversight by an administrator to ensure compliance.<\/span><\/p>\n

The global settlement amount of $95.5 million reflects EDMC\u2019s financial condition and current ability to pay.<\/span><\/p>\n

The settlement proceeds will be shared among the United States, the states and the whistleblowers and their counsel in the four FCA cases.<\/span><\/p>\n

The United States will receive $52.62 million from the settlement, and will pay $11.3 million collectively to the whistleblower cases.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

PENNSYLVANIA The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials. Officials described the $95.5 million settlement \u00a0with\u00a0Education Management Corp. or…<\/p>\n","protected":false},"author":1,"featured_media":17463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1920,1921,1922],"class_list":["post-17447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-consumer-fraud","tag-education","tag-recruitment"],"yoast_head":"\nFor-Profit College Order to Pay $95.5 Million for Fraud<\/title>\n<meta name=\"description\" content=\"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=17447\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"For-Profit College Order to Pay $95.5 Million for Fraud\" \/>\n<meta property=\"og:description\" content=\"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cjnotebook.com\/?p=17447\" \/>\n<meta property=\"og:site_name\" content=\"American Justice Notebook\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AmericanJusticeNotebook\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-16T23:33:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"620\" \/>\n\t<meta property=\"og:image:height\" content=\"349\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Raul\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Raul\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447\"},\"author\":{\"name\":\"Raul\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/person\\\/f5521baddca77b521f012298775186c0\"},\"headline\":\"For-Profit College Ordered to Pay $95.5 Million for Illegal Recruiting and Fraud\",\"datePublished\":\"2015-11-16T23:33:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447\"},\"wordCount\":568,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2015\\\/11\\\/EDMC.jpg\",\"keywords\":[\"consumer Fraud\",\"education\",\"Recruitment\"],\"articleSection\":[\"Home Main Slider\",\"U.S. Department of Justice\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447\",\"name\":\"For-Profit College Order to Pay $95.5 Million for Fraud\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2015\\\/11\\\/EDMC.jpg\",\"datePublished\":\"2015-11-16T23:33:40+00:00\",\"description\":\"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/cjnotebook.com\\\/?p=17447\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=17447#primaryimage\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2015\\\/11\\\/EDMC.jpg\",\"contentUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2015\\\/11\\\/EDMC.jpg\",\"width\":620,\"height\":349},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#website\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/\",\"name\":\"American Justice Notebook\",\"description\":\""Our liberty depends on the freedom of the press, and that cannot be limited without being lost." \u2014 Thomas Jefferson\",\"publisher\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/cjnotebook.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#organization\",\"name\":\"American Justice Notebook\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/07\\\/Justice-Scales.jpg\",\"contentUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/07\\\/Justice-Scales.jpg\",\"width\":675,\"height\":231,\"caption\":\"American Justice Notebook\"},\"image\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/AmericanJusticeNotebook\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/person\\\/f5521baddca77b521f012298775186c0\",\"name\":\"Raul\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g\",\"caption\":\"Raul\"},\"description\":\"Raul Hernandez is a former journalist. He has worked as a newspaper reporter for more than 30 years at the El Paso Herald-Post, El Paso Times, Press Enterprise in Riverside, California and the Ventura County Star in California. He was a court reporter for more than 20 years.\",\"sameAs\":[\"https:\\\/\\\/cjnotebook.com\\\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"For-Profit College Order to Pay $95.5 Million for Fraud","description":"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cjnotebook.com\/?p=17447","og_locale":"en_US","og_type":"article","og_title":"For-Profit College Order to Pay $95.5 Million for Fraud","og_description":"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.","og_url":"https:\/\/cjnotebook.com\/?p=17447","og_site_name":"American Justice Notebook","article_publisher":"https:\/\/www.facebook.com\/AmericanJusticeNotebook","article_published_time":"2015-11-16T23:33:40+00:00","og_image":[{"width":620,"height":349,"url":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg","type":"image\/jpeg"}],"author":"Raul","twitter_misc":{"Written by":"Raul","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cjnotebook.com\/?p=17447#article","isPartOf":{"@id":"https:\/\/cjnotebook.com\/?p=17447"},"author":{"name":"Raul","@id":"https:\/\/cjnotebook.com\/#\/schema\/person\/f5521baddca77b521f012298775186c0"},"headline":"For-Profit College Ordered to Pay $95.5 Million for Illegal Recruiting and Fraud","datePublished":"2015-11-16T23:33:40+00:00","mainEntityOfPage":{"@id":"https:\/\/cjnotebook.com\/?p=17447"},"wordCount":568,"commentCount":0,"publisher":{"@id":"https:\/\/cjnotebook.com\/#organization"},"image":{"@id":"https:\/\/cjnotebook.com\/?p=17447#primaryimage"},"thumbnailUrl":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg","keywords":["consumer Fraud","education","Recruitment"],"articleSection":["Home Main Slider","U.S. Department of Justice"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/cjnotebook.com\/?p=17447#respond"]}]},{"@type":"WebPage","@id":"https:\/\/cjnotebook.com\/?p=17447","url":"https:\/\/cjnotebook.com\/?p=17447","name":"For-Profit College Order to Pay $95.5 Million for Fraud","isPartOf":{"@id":"https:\/\/cjnotebook.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/cjnotebook.com\/?p=17447#primaryimage"},"image":{"@id":"https:\/\/cjnotebook.com\/?p=17447#primaryimage"},"thumbnailUrl":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg","datePublished":"2015-11-16T23:33:40+00:00","description":"The federal government reached a settlement with a for-profit college for illegal recruiting, consumer fraud and other violations, according to officials.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cjnotebook.com\/?p=17447"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cjnotebook.com\/?p=17447#primaryimage","url":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg","contentUrl":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/11\/EDMC.jpg","width":620,"height":349},{"@type":"WebSite","@id":"https:\/\/cjnotebook.com\/#website","url":"https:\/\/cjnotebook.com\/","name":"American Justice Notebook","description":""Our liberty depends on the freedom of the press, and that cannot be limited without being lost." \u2014 Thomas Jefferson","publisher":{"@id":"https:\/\/cjnotebook.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cjnotebook.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/cjnotebook.com\/#organization","name":"American Justice Notebook","url":"https:\/\/cjnotebook.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cjnotebook.com\/#\/schema\/logo\/image\/","url":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Justice-Scales.jpg","contentUrl":"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Justice-Scales.jpg","width":675,"height":231,"caption":"American Justice Notebook"},"image":{"@id":"https:\/\/cjnotebook.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/AmericanJusticeNotebook"]},{"@type":"Person","@id":"https:\/\/cjnotebook.com\/#\/schema\/person\/f5521baddca77b521f012298775186c0","name":"Raul","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f80bd073aca2abc2fc18e390e13d00b72d9d3a81bca4fd53e3567b02efee6f?s=96&r=g","caption":"Raul"},"description":"Raul Hernandez is a former journalist. He has worked as a newspaper reporter for more than 30 years at the El Paso Herald-Post, El Paso Times, Press Enterprise in Riverside, California and the Ventura County Star in California. He was a court reporter for more than 20 years.","sameAs":["https:\/\/cjnotebook.com\/"]}]}},"_links":{"self":[{"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/posts\/17447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17447"}],"version-history":[{"count":10,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/posts\/17447\/revisions"}],"predecessor-version":[{"id":17464,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/posts\/17447\/revisions\/17464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=\/wp\/v2\/media\/17463"}],"wp:attachment":[{"href":"https:\/\/cjnotebook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cjnotebook.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}