Education Management Preys on Students, Ex-Recruiter Claims

Date Published:

Bloomberg
By John Hechinger – Mar 15, 2012 4:54 PM ET

Education Management Corp. (EDMC), the second-largest U.S. for-profit college chain, defrauded U.S. taxpayers by paying illegal bonuses to recruiters who cited falsified job-placement data to lure students, a former employee claimed in a lawsuit.

Education Management used “boiler-room” tactics to receive millions of dollars in federally backed student loans and grants, Jason Sobek, a former recruiter for the company’s South University, said in a complaint unsealed yesterday in Pittsburgh federal court. The company targeted “troubled” students, including the homeless and mentally ill, according to the lawsuit.

For more info read : http://www.bloomberg.com/news/2012-03-15/education-management-preys-on-students-former-recruiter-claims.html