Thursday 14 December 2017
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For Profit College Who operates “Art Institutes” Schools, 2cnd largest For-Profit Education Co, settles with the department of Justice $95.5 Million

For Profit College Who operates “Art Institutes” Schools, 2cnd largest For-Profit Education Co, settles with the department of Justice $95.5 Million

Department of Justice posted the release information on Monday November 16, 2015

Read the Release below

Click Here


EDMS is the abbreviation for Education Management Corp. EDMC, which is headquartered in Pittsburgh, Pennsylvania, operates nation wide under four post-secondary school brands;

  1. The Art Institute
  2. South Iniversity
  3. Argosy University
  4. Brown-Mackie College

School enrollment across school brands listed above exceeds 100,000 students.

Statements taken from the Report making claims such as;

  • allegations that EDMC violated federal and state false claims Act (FCA) provisions by falsely certifying that it was in compliance with Title IV of the Higher Education Act (HEA) and parallel state statutes.
  • Loreeta Lynch states “Operating essentially as a recruitment mill”
  • Violation of trust by the students
  • Primary allegation was that EDMC unlawfully recruited students, in contravention of the Higher Education Act incentive Comensation Ban (ICB)
  • admission personnel wee paid based purely on the number of students they enrolled, also deceptive and mis leading recruiting practices
  • The settlement resoves four seperate FCA lawsuits filed in federal court in Pittsbugh, Pennsylvania, and Nashville, Tennessee, uner the whisleblower, provision of the ACT, which provided individuals to sue on behalf of the government for flse claims and to share in recovery.
  • The US compaint in intervention alleged systemic violations of Title IV of the High Education Act, specifically states claims that from 2003-to present, EDMC falsely certified to the U.S. Department of EDucation and varous state offices of higher education that it was complying with the ICS, in order to be eligible to recieve the federal grant and loan dollars that compose the majority of EDMC’s revenue.
  • In a nut shell this company was running a high pressure sales business and paid its recruiters based only on the number of students they enrolled, As a result of these allegedly false certifications, EDMC improperly enriched itseelf for more than 10 years with federal and state grant and loan dollars.


If you are a student reading this post and were a student of one of these schools and feel you experienced similar problems, do some homework, find out what your school code was, read the actual law suit at your local law library on line.


More lawsuit posts comming this whole student loan crisis has been brewing for years, The Government is the one collecting with little help yet for the students as of yet for these loans by these schools and colleges supposedly we are to trust.  Why no help ? this would be the next meltdown like the collapse of the mortgage industry


May 6th 2015 the paper Pittsburgh Post-Gazette wrote a article listing the 15 Art Institute location due to close in the next few years.

Read More


Denise Horn, assistant Press Secretary for Communications and out reach at the U.S. Dept of Education stated Art Institute is also on the U.S. dept of Educations heightened cash monitoring list, which provides additional oversight over federal student aid loans .  Schools are put on the listdo to issues such as late or missing financial statements, or audits, outstanding liabilities, accreditation issues and concern about the schools financial responsibilities, just to name a few.


If you have not read other posts reguarding Federal or Private Student loan issues you may want to take the time to read them.

Mentioned are the Borrowers Defense Program , you draft an explanation for the Dept of Education reguarding or specifically identify what state laws were violated and how the school specifically connitted fraud.  or how about the School Code you were given on your original FAFSA report, if it is not a accredited school or falsly claimed it was that is a violation of the Higher Education Act.  Do some reasearch or share this post to others you believe could benefit from the information.

Article from the Huffington Post dated July 19th 2016 The Truth About Higher Education and Student Loans by Jason Furman

Click Here

December 14th 2011 Article from Huffington Post, Just as the subprime mortgage bubble was giving way to a bust that would help trigger a devastating financial crises, Goldman Sachs  found its way to a new area of explosive growth, he partnered with EDMC and eventually had a 41% stake.  The federal Government was boosting aid to college students nationwide, just as a declining economy prompted millions of Americans to seek refuge in higher education, leading to dramatically expanding enrollments at many colleges.

Great Read, it is always good to get different perspectives on any legal issue.

Click Here

Another Article by Inside Higher Ed, metnioning  the closure of Corinthians College, also listed many more in trouble

Click Here



From The Department of Education Federal Student Aid’s Home Website  It has information on debt relief for a For Profit School Corinthian College that closed its doors On April 27th 2015, Below a link on a list of schools and there locatio there is more than you think .now although this was a few years ago, I am just finding out about it, I wonder how many other students effected may have no clue.   Browse through it, take notes on information it is providing.  Why The topic discusses again for those who believe they were defrauded or that their school violated applicable state law. I believe this is a wide spread problem and is just the begining of many more to come.

Here is the Link to read more on this schools closure  This is a help sight Specifically Corinthian College students, it has many other schools connected to its corporation by the Department of Education Federal Student Aids Home Website


A list of schools that closed Click Here  Alot of schools in California surprised me



The actual complaint filed in a San Fransico California  Court dated October 10th 1013

Read the Complaint Here