DOJ Probes Auto Technician School Over Federal Aid Promises

Law360, New York (July 23, 2012, 2:06 PM EDT) -- The U.S. Department of Justice is investigating whether for-profit auto technician school Universal Technical Institute Inc. violated the False Claims Act by paying recruiters based on the number of students they enrolled or promised federal aid, the Arizona company said Monday.

Scottsdale-based UTI said it is the subject of a preliminary investigation based on claims by a former employee that the school violated a provision of the Higher Education Act barring enrollment-based incentive compensation for counselors. UTI said it intends to cooperate with the DOJ’s probe and...
To view the full article, register now.