The U.S. Justice Department and four states sued the nation’s second-largest for-profit college corporation on Monday, alleging in a wide-ranging complaint that Education Management Corp. violated federal laws by giving bonuses and raises to college recruiters based entirely on the number of students they enrolled.
By unlawfully incentivizing its sales force to recruit as many students as possible, Pittsburgh-based EDMC also illegally took in federal student aid money by making false assurances to the government that its admissions counselors were complying with the government recruiting guidelines, the government alleged.
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