Judge finds basis for parts of case against McKernan-led firm
Four charges against a for-profit university previously led by former Maine Gov. John "Jock" McKernan have grounds to move forward after a federal court ruling.
The Portland Press Herald reported that two charges against Education Management Corp., based in Pittsburgh, were thrown out while four allegations brought forward by a former admissions officer have enough evidence to proceed.
Correction: A previous version of this article incorrectly characterized the allegations against Education Management as "federal charges." The allegations considered by a U.S. district judge come from a former employee and the federal government is not a party to the lawsuit.
The charges continuing are still subject to approval by a U.S. district judge and include allegations from a former employee that Education Management used deceptive accreditation and job placement statistics in violation of a ban on sales-based incentives to compensate admissions recruiters.
The court dismissed charges that Education Management misrepresented the cost of its programs and that it failed to inform the federal Pell Grant program if students receiving aid dropped out, the Press Herald reported.
An initial complaint filed last year alleged that violations occurred between July 2003 and June 2011.
McKernan, who is married to U.S. Sen. Olympia Snowe, is currently the chairman of Education Management's board and was CEO from 2003 to 2007 of the company that owns the Art Institutes, Argosy University, South University and Brown Mackie College.
McKernan is not named individually in that lawsuit.
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