“Operating Essentially as a Recruitment Mill”: $95.5M

DOJ alleged the second-largest for-profit college chain ran a “high pressure boiler room” paying recruiters per enrollment while certifying it didn’t — across 100,000+ students. The Attorney General named veterans among those harmed. A Title IV case; no GI Bill dollar split is claimed.

DOJ alleged that from 2003, EDMC falsely certified compliance with the Higher Education Act’s Incentive Compensation Ban while running "a high pressure boiler room" that paid admissions staff purely per enrollment. The certifications unlocked the federal grant and loan dollars that made up most of EDMC’s revenue across more than 100,000 students.

The global deal resolved four whistleblower suits plus the state attorneys general’s consumer-fraud investigation into deceptive recruiting about job placement and outcomes.

Framing, stated plainly: this False Claims Act case ran on Title IV federal student-aid certifications, not GI Bill dollars specifically, and DOJ states no VA or GI Bill portion. It belongs in this library because the Attorney General expressly named veterans among the students the recruitment machine harmed — the same enrollment-at-any-cost model that GI Bill oversight keeps chasing. A settlement of allegations, not a conviction.

"Operating essentially as a recruitment mill"
— U.S. Department of Justice, Office of Public Affairs (archive)

Source: U.S. Department of Justice, Office of Public Affairs (archive). Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).