Suit: Co. broke student aid rules under McKernan
A for-profit college chain recently headed up by former Maine Gov. John McKernan is being sued by four states and the U.S. Department of Justice for fraudulently securing more than $11 billion in federal aid while improperly recruiting students.
Education Management Corp., the second-largest for-profit college chain in the country, violated rules for schools that receive federal student aid by illegally paying recruiters based on the number of students they signed up, according to a federal complaint, Bloomberg News reported. The government, joining an employee whistleblower suit, claims the company enrolled students regardless of their qualification, including some who couldn't write coherently or appeared to be under the influence of drugs, the complaint states.
The violations are alleged to have occurred between July 2003 and June 2011. McKernan, Maine's governor from 1987 to 1995 and husband of Sen. Olympia Snowe, served as Education Management's CEO from Sept. 2003 to 2007 and now chairs its board. He is not named individually in the suit, and a May statement issued on his behalf said the lawsuit was "unwarranted and without merit." The company, based in Pittsburgh, denied violating any government rules, Bloomberg reported.
Illinois, Florida, California and Indiana have joined the case. Education Management, which enrolls nearly 140,000 students, operates the Art Institute chain, Argosy University, Brown Mackie College and South University.
Most Recent
Most Recent
Comments