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From The New York Times: The U.S. Department of Justice and four states argue in a lawsuit that the Education Management Corporation, the nation’s second-largest for-profit college company, was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011. The case is the first in which the government has intervened to back whistle-blowers’ claims that a company consistently violated federal law by paying recruiters based on how many students it enrolled. The suit contends that each year, Education Management falsely certified that it was complying with the law, making it eligible to receive student financial aid.
