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Mar 27 2012Other Injury, Business Fraud
A former employee of Education Management Corp. - the second largest for profit college chain - claims the company defrauded U.S. taxpayers by giving out illegal bonuses to recruiters who used false job-placement information to attract students.
Jason Sobek alleges that the company used “boiler room” tactics to receive millions of dollars in grants and student loans backed by the government, according to Bloomberg.
The whistleblower lawsuit says that education management “had a corps of recruiters, all well-trained in sales and closing techniques, who perfected the art of preying on the hopes and dreams of vulnerable students desperately seeking better lives.”
Sobek filed his complaint under a whistleblower provision in the False Claims Act, which allows U.S. citizens to act as whistleblowers to file complaints against companies that have committed fraud against the government.
If you have information about practices that are defrauding the government, contact Sokolove Law for a free legal consultation and to learn more about pursuing a whistleblower lawsuit.
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