Bridgepoint Education Inc. is being investigated by the Department of Justice for suspected education fraud in the compensation of its admissions staff. The university operator allegedly compensated admissions staff based on successful admissions, according to Reuters.
Education Co. Suspected of Illegally Paying College Admissions Staff based on Enrollments
Under federal law, colleges are prohibited from compensating their employees based on student enrollments. Because for-profit colleges often receive much of their funding from federal loans and grants, the more students who are enrolled, the more federal money becomes available. However, these students may not have a reasonable prospect of success in college or of making it in their chosen career.
In July, the Western Association of Schools and Colleges said that Ashford University spent more money recruiting students than educating them. Then three months ago, Ashford University, the flagship of the for-profit university chain, was denied certification for allegedly failing to comply with certain educational standards. And on October 10, Bridgepoint received a letter from the Justice Department about the investigation, informing the company that the department may pursue a formal process in order to subpoena evidence.
Whistleblowers Have Important Role in Fighting Education Fraud
Education fraud drains federal funds and harms students striving for a better life. Whistleblowers can help stop this serious problem. To reward their contribution, the qui tam provisions of the False Claims Act give whistleblowers the right to file a lawsuit against those committing fraud against the government and to receive a portion of any funds recovered.
Whistleblowers should know their rights under the False Claims Act. The lawyers at Waters & Kraus can explain the applicable law and lead you through the legal process. Contact us or call our whistleblower attorneys at 800.226.9880 to learn more about our practice and how we can assist.
