July 31, 2007
Oakland City University will pay a $5.3 million to settle allegations that it paid incentives to admissions recruiters and failed to report those payments to the federal government. Those payments violated the False Claims Act.
The suit originated as a whistleblower suit under the qui tam provisions of the act. The complaint was filed by the school’s former director of admissions, who discovered that the university’s policy of paying incentives was in direct contradiction to guidelines in agreements the university filed with the federal government.
Additional information on the settlement can be found in the July 30, 2007 article published in the Evansville, IN, Courier & Press.