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05/18/2012

Career college with Fort Worth campus accused in whistleblower lawsuit

Another career school with campuses in Texas is being accused of defrauding the government by paying incentives to recruiters based on the number of students they signed up. That's against the law because it could encourage recruiters to sign up unqualified students or to inflate claims about job opportunities to enroll more students.

WhistleTwo former recruiters filed a whistleblower lawsuit against Pittsburgh-based Education Management Corp., accusing the company of defrauding the federal government of $11 billion in federal student aid. Not so, says the company, which asked a Pennsylvania judge to toss out the suit, but he would not, a legal publication reports. The Art Institute of Fort Worth and the Art Institute of Dallas, Brown Mackie College in Dallas and Argosy University in Dallas are among the company's Texas campuses. A Dallas lawyer who has sued a number of for-profit career colleges on behalf of jaded students and ex-employees says she is representing a number of students with claims against the Dallas Argosy campus. A number of states joined in the whistleblower suit, but Texas is not among them. - Lois Norder

 

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