August 11, 2011
Indiana joined the U.S. Justice Department on Monday in a whistleblower lawsuit against Education Management Corp., the parent company of Brown Mackie College and the Art Institute, claiming the schools received more than $12 million in state financial aid based on false claims.
Indiana Attorney General Greg Zoeller joined the attorneys general from California, Illinois, Florida and the federal government in a 122-page complaint that claims $11 billion in government aid has been improperly received by the company since 2003.
Two former employees of Pittsburgh-based Education Management and its for-profit college networks started the suit in 2007 in Pennsylvania, but it became public when the government joined.
In the past two months, instructors at Indiana sites of Education Management have told similar stories of incentive plans to recruit students, even unqualified students, state officials allege.
The states and federal government allege Education Management and its schools violated a federal law that bans incentive compensation for college admissions employees based on the numbers of students they enroll.
Article: Indianapolis Star
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