Justice Department Files Complaint Against Career-College Company

The U.S. Department of Justice has filed a complaint in a whistle-blower lawsuit brought by six former employees of a Texas-based chain of career colleges who allege that the company misrepresented its job-placement statistics in order to remain eligible to receive federal student-aid funds. The company, ATI Enterprises Inc., operates technical- and career-training institutes in Texas and three other states. In a news release describing its complaint, the department outlines a series of fraudulent recruiting and reporting practices that it alleges occurred at three ATI campuses, in Dallas and North Richland Hills, Tex. The department contends that company officials knowingly engaged in those practices “in order to induce students to enroll and thereby increase the school’s receipt of federal dollars at the expense of students, who incurred long-term debt, and the taxpayers.” The Texas Workforce Commission revoked licenses for several of ATI’s programs at the three campuses last year.

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