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Online University Pays After Allegations of Violating False Claims Act

January 7, 2010

University of Phoenix has paid the U.S. government $67.5 million for violating the False Claims Act. The DoJ states, the University’s student recruitment policies were in direct violation of this act. Two former employees of the University, Mary Hendow and Julie Behn, filed this case as a qui tam whistleblower action. The former employees alleged admissions counselors were in fact compensated based on the number of students recruited and in return the University accepted federal student financial aid. Hendow and Behn together received $19 million from the settlement.

To report government fraud and abuse, contact Frohsin & Barger.

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