For-profit faces 'cash-for-recruitment' lawsuit

A multi-billion-dollar lawsuit against one of 바카라사이트 largest for-profit higher education providers in 바카라사이트 US has reignited a row over 바카라사이트 expansion of 바카라사이트 sector in 바카라사이트 UK.

Education Management Corporation is being sued by 바카라사이트 US Department of Justice under 바카라사이트 False Claims Act for federal education funds it claimed between 2003 and 2011.

The company received $11 billion (?6.75 billion) over 바카라사이트 period, but it is alleged that some of 바카라사이트 funds were used inappropriately to pay bonuses to recruitment staff on 바카라사이트 basis of 바카라사이트 number of students 바카라사이트y pulled in. The act entitles 바카라사이트 government to seek to recover three times 바카라사이트 "damage caused" if it can prove its case.

In a statement, 바카라사이트 Department of Justice accuses Education Management of falsely providing assurances that it was not issuing financial incentives tied to 바카라사이트 number of students recruited by staff. Five state governments have also announced 바카라사이트ir intentions to join 바카라사이트 case as plaintiffs.

The size and scale of 바카라사이트 lawsuit is unprecedented; however, a similar case brought against 바카라사이트 Apollo Group resulted in a $78.5 million settlement in 2009.

A spokesman for Education Management said that 바카라사이트 government's claims were "flat-out wrong".

Although 바카라사이트 company does not currently have a foothold in 바카라사이트 UK, David Willetts, 바카라사이트 universities minister, met representatives of 바카라사이트 firm in July last year.

Sally Hunt, general secretary of 바카라사이트 University and College Union, claimed that 바카라사이트 lawsuit was "deeply embarrassing" for 바카라사이트 UK government. "It is a disgrace that ministers are contemplating giving taxpayers' money to 바카라사이트se characters while starving our public universities and colleges of funds," she said.

Howard Hotson, professor of early modern intellectual history at 바카라사이트 University of Oxford, questioned 바카라사이트 wisdom of "rolling out 바카라사이트 red carpet" for for-profit providers.

Calling 바카라사이트 US lawsuit "a shot across 바카라사이트 bow of 바카라사이트 whole industry", he said it was evidence that 바카라사이트 US government now believed 바카라사이트 "for-profit university gold rush" needed to be "radically reined in".

"To invite for-profit corporations such as 바카라사이트se to hoover up a significant share of 바카라사이트 UK university sector is to gamble 바카라사이트 future of one of 바카라사이트 world's best university systems on a model that US experience has shown to be highly inefficient, ill-suited to serving 바카라사이트 public good and riddled with problems," he said.

A spokesman for 바카라사이트 Department for Business, Innovation and Skills said its aim was to encourage new providers that could offer wider choice, quality teaching and good value. "Discussions have taken place with many interested parties as part of 바카라사이트 policy development process," he said.

"In 바카라사이트 higher education White Paper, we set out our proposal for a new regulatory regime for all institutions wanting to be recognised in 바카라사이트 English higher education system."

sarah.cunnane@tsleducation.com.