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Indiana joins suit against for-profit college company

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Indiana has filed a joint complaint in a whistleblower suit against Education Management Corp., which alleges the for-profit college company and two of its subsidiaries received more than $12 million in state financial aid after making false claims and misrepresentations to the state.

This is the first time Indiana Attorney General Greg Zoeller’s office has used a whistleblower lawsuit to seek civil penalties due to false claims paid out of state financial aid, rather than out of Medicaid.

The lawsuit was originally filed by private plaintiffs in U.S. District Court, Western District of Pennsylvania. It alleges that EDMC and subsidiaries violated a federal law that bans incentive compensation for college admissions employees based on the number of students they enroll. The companies are accused of violating Title IV of the Higher Education Act of 1965 by improperly compensating college recruiters with bonuses such as expensive vacations based on the number of students they recruited to enroll. The defendants of the Indiana portion of the suit are The Art Institute of Indianapolis and Brown Mackie College, which operates in five Indiana cities.

The Indiana portion of the complaint alleges a total of 16,814 student financial aid awards were claimed by the six EDMC schools operating here that falsely represented their compliance and eligibility to the state. The lawsuit says that EDMC defrauded the State of Indiana by claiming more than $12 million in student financial aid for which it was not eligible since 2003.

Indiana seeks civil penalties of at least $5,000 for each false claim submitted, treble damages, attorney fees, litigation costs and interest. A copy of the suit is available on the attorney general’s website. The state is demanding a jury trial.

The states of California, Florida, and Illinois, as well as the United States, also intervened in the suit.

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  1. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  2. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  3. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

  4. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

  5. This article proved very enlightening. Right ahead of sitting the LSAT for the first time, I felt a sense of relief that a score of 141 was admitted to an Indiana Law School and did well under unique circumstances. While my GPA is currently 3.91 I fear standardized testing and hope that I too will get a good enough grade for acceptance here at home. Thanks so much for this informative post.

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