Whistleblower lawsuit against for-profit education company unsealed
In a federal lawsuit that was unsealed last week, a former employee of a for-profit education company that runs several colleges and online programs in California claims the company illegally compensated recruiters based on how many students they enrolled.
In the July 2007 lawsuit, Brian T. Buchanan of Squirrel Hill, Pa., claimed he saw his employer, South University Online, pay admissions representatives based on the number of students they signed up for courses, according to the Pittsburgh Tribune-Review. That's a violation of a federal law that applies to any university that disburses federal student loans.
South University Online is a subsidiary of Education Management Corp., a Pittsburgh-based for-profit company. The company also runs Western State University College of Law in Fullerton, the Art Institutes and Argosy
In the July 2007 lawsuit, Brian T. Buchanan of Squirrel Hill, Pa., claimed he saw his employer, South University Online, pay admissions representatives based on the number of students they signed up for courses, according to the Pittsburgh Tribune-Review. That's a violation of a federal law that applies to any university that disburses federal student loans.
South University Online is a subsidiary of Education Management Corp., a Pittsburgh-based for-profit company. The company also runs Western State University College of Law in Fullerton, the Art Institutes and Argosy
