DOJ Pans For-Profit College Co.'s Bid To Nix Fraud Suit

Law360, New York (December 8, 2011, 3:06 PM EST) -- The U.S. Department of Justice on Wednesday rebuked a motion to dismiss a whistleblower suit against for-profit college chain owner Education Management Corp., insisting the government had done more than enough to state fraud claims over the $11 billion the company received in federal aid.

The False Claims Act suit, filed in federal court in Pennsylvania, accuses Education Management of tying its recruiters' pay directly to the number of students they enrolled, in violation of the Higher Education Act. In applying for aid, Education Management falsely...
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