Goldman Sachs' Education Management Corporation Accused of Widespread Fraud

For-Profit College Group Sued as U.S. Lays Out Wide Fraud
By TAMAR LEWIN

The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation’s second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011.

While the civil lawsuit is one of many raising similar charges against the expanding for-profit college industry, the case is the first in which the government intervened to back whistle-blowers’ claims that a company consistently violated federal law by paying recruiters based on how many students it enrolled. The suit said that each year, Education Management falsely certified that it was complying with the law, making it eligible to receive student financial aid.

“The depth and breadth of the fraud laid out in the complaint are astonishing,” said Harry Litman, a lawyer in Pittsburgh and former federal prosecutor who is one of those representing the two whistle-blowers whose 2007 complaints spurred the suit. “It spans the entire company — from the ground level in over 100 separate institutions up to the most senior management — and accounts for nearly all the revenues the company has realized since 2003.”

Education Management, which is based in Pittsburgh and is 41 percent owned by Goldman Sachs, enrolls about 150,000 students in 105 schools operating under four names: Art Institute, Argosy University, Brown Mackie College and South University.

In a statement Monday, the company denied any wrongdoing.

“The pursuit of this legal action by the federal government and a handful of states is flat-out wrong,” said Bonnie Campbell, a spokeswoman for the company’s legal counsel. “EDMC’s 2003 compensation plan followed the law in both its design and implementation, as EDMC’s response to the governments’ complaint will show.”

“Federal regulations issued in 2002 permitted companies to consider enrollments in admission officer compensation, so long as enrollments were not the sole factor considered,” the statement continued. “To ensure compliance with this regulation, EDMC worked closely with outside experts in both human resources and education law to develop a plan that required consideration of five quality factors along with enrollment numbers to determine salaries.”


more
http://www.nytimes.com/2011/08/09/education/09forprofit.html?_r=3&a...

Views: 522

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on Doc Vega's photo
Thumbnail

715995407_27066569266338656_4621890679891427521_n

"cheeki kea I was born in Los Angeles, California and I will never go back there! The Democrats have…"
yesterday
Doc Vega posted a blog post

What was the “Flying Pig” as the Germans Called it?

 In 1943 the Eighth Air Force was in a deadly quandary. The US Air Force had no fighter aircraft at…See More
yesterday
Sandy posted photos
yesterday
Doc Vega posted blog posts
Saturday
Sandy posted a photo
Saturday
Doc Vega posted photos
Saturday
cheeki kea favorited tjdavis's video
Saturday
cheeki kea commented on Doc Vega's photo
Saturday
Doc Vega posted blog posts
Friday
Doc Vega posted a photo
Wednesday
Doc Vega posted blog posts
Wednesday
Doc Vega posted a blog post

How they Planned the Destruction of America (And Nearly Succeeded)

In 2020 The Democrats went on a major offensive. Prevent Donald Trump from taking office, continue…See More
Jun 2
Doc Vega posted blog posts
May 31
Doc Vega posted a photo
May 31
Sandy posted a photo
May 31
tjdavis posted a video

It's Over. The Tool Bans Just Arrived!

First tool ban is here! A new law was just signed in New York that requires blueprint blocking technology on every CNC machine, laser cutter, lathe and 3D pr...
May 30
tjdavis posted photos
May 30
Doc Vega posted a blog post

Angry Old Man James Carville Warns of More to Come?

 A new type of signaling is brewing among the left and disenfranchised Democrats who have refused…See More
May 30
Doc Vega posted photos
May 29
Sandy posted photos
May 29

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted