For-Profit College Company Gets Major Fine
The Department of Justice slapped a major fine on Education Management Corporation. Is this the latest in the crackdown on for-profit colleges?By Katie Link | November 17, 2015
For-profit colleges across the country are under fire. Just take Education Management Corporation, or EDMC, for example.
The company enrolls more than 100,000 students and operates schools under the names The Art Institute, Argosy University, Brown Mackie College and South University. A yearslong Justice Department investigation wrapped up this week reveals it hasn't been playing by the rules for a while.
According to accusations from former employees, EDMC has been operating "recruiting mills" of sorts, illegally paying recruiters for enrolling students, and misleading both students and investigators about its practices. As a result, the company will have to fork over $95.5 million to settle with the DOJ.