Where for-profit colleges are noncompliant, the DOJ has shown its willingness to enforce compliance through a robust tool—the False Claims Act
Administrators and employees of for-profit colleges need to be aware of a federal statute that may not immediately associate with these institutions: the False Claims Act (“FCA”).
Pressure has been building from the Department of Justice (“DOJ”) to prosecute civil FCA cases against for-profit colleges in a growing number of areas.
Four such example areas include the 90/10 Rule, job placement rates, incentive-based compensation to recruiters, and enrolling ineligible students. FCA...