U.S. Government to Join in Whistle-Blower Lawsuit Against For-Profit College

In a rare move, the U.S. Department of Justice will join in a whistle-blower lawsuit brought by a former employee of a college owned by the Education Management Corporation, which is accused of illegally obtaining federal student aid by paying its admissions recruiters commissions based on the number of students they enrolled. The company, which operates Argosy University, South University, Brown Mackie Colleges, and the Art Institutes, also disclosed on Monday that it expected several states to join the lawsuit as well. According to Bloomberg News, the suit, which is still under court seal in Pittsburgh, is different from another whistle-blower suit filed against the company by a former South University employee.

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