A for-profit college based in Denver and its campuses in Texas have agreed to pay the federal government $7-million to settle allegations of student-aid fraud, the U.S. Justice Department announced today.
The company, Alta Colleges Inc., faced a lawsuit asserting that it had obtained federal student aid by falsely claiming that it had complied with state-licensing requirements. Such licensing is required to receive federal aid.
According to the allegations, which were part of a False Claims Act lawsuit initially filed by unnamed whistle-blowers, Alta Colleges and its Westwood College campuses obtained a state license to operate in Texas by falsely stating that they observed state requirements on job-placement reporting and that their interior-design programs complied with the requirements for a professional license in the field.
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