The U.S. Dept. of Justice joined an employee whistleblower suit against Education Management, the second largest operator of for-profit colleges. The suit alleges that the company compensated some employees based on the number of students they enrolled into the company’s colleges
DOJ’s intervention, the first in a qui tam suit alleging illegal student recruitment practices, follows investigations by Congress and the federal Education Department into sales practices, student-loan defaults and job placement claims at for-profit colleges.
The company’s announcement said that several states are expected to join the action alleging violations of their respective state False Claims Acts.