U. of Phoenix agrees to pay $67.5 million - UPI.com

U. of Phoenix agrees to pay $67.5 million - UPI.com

SACRAMENTO, Dec. 15 (UPI) -- The Universityof Phoenix has agreed to pay $67.5 million to settle a suit by two whistle-blowers over its recruitment policy, federal officials said Tuesday.
Mary Hendow and Julie Behn, both former employees, sued under the False Claims Act in federal court in Sacramento, the U.S. Justice Department said. They will receive $19 million, with the rest going to the U.S. Department of Education.
The university will also pay $11 million to the women's lawyers, bringing the total payout to $78.5 million.
Hendow and Ben charged the university violated federal regulations that bar employees involved in recruitment and admissions at post-secondary institutions that receive federal aid from having pay tied to the number of students they bring in.
Phoenix, a for-profit institution owned by the Apollo Group, has more students than any other higher education institution in North America and is the biggest recipient of federal aid for college students. But a 2005 study found only a small percentage of the students who enter receive degrees, The Sacramento Bee reported.