The Importance Of EDMC Settlement

By Jennifer Meyer


Around 110 schools are operated by EDMC. Some of schools are found in US. Other schools are found in Canada. Argosy University, South University, Art Institutes and Brown Mackie College are some of learning institutions managed by Education Management Corporation. EDMC was caught using wrong techniques during students recruitment exercise. It was also found providing misleading information to students regarding degrees its schools offered. Company has been instructed to pay some amount of money as EDMC Settlement.

Education Management Corporation will pay around ninety five and half million dollars in to resolve four whistleblower lawsuits. Company is accused of misleading government by using illegal method to admit students. Education Management Corporation has been accused of providing wrong information to students so as to entice them. This made it offer promises that it was not able to fulfill. Some students left the programs owing to disappointment.

It has been alleged by whistleblower lawsuits that education management corporation paid recruiters depending on number of students enrolled. This method of recruitment is not acceptable for schools, which allow federal students grants and loans. This crystal clearly shows that it acted against the law and it should be accountable for such illegal deeds. In other words, company never followed required procedure during its recruitment. This form of admission is highly discouraged because chances of company recruiting students, who are not fit for program, are high.

Before EDMC engaged in this disastrous deed, it was operating excellently. Both students and parents trusted it owing to the way it operated. However, these recent deeds destroyed everything. Many people were stunned and lost hope in it. These actions also reminded people the year 2007 when company was associated with another corruption activity. In that year, one of schools it operates broke federal laws. It was accused of paying recruiters of students depending on number of students enrolled. Company finally paid around eleven billion dollars.

Investigation took about four years before truth of the matter was uncovered. Investigation process was led by high experienced attorneys. Finally, results were acquired. Abusive tactics that company used during its recruitment process were realized but truth of the matter is that its admission process was really tainted.

Company acquires most of its money from the taxpayers. Company makes so much money annually compared to other companies operating in the same sector. This company specializes in education and this is why it has minimal chances of making loss. Main reason why EDMC involved itself in such fetid deed was to collect money through illegal method, but the deeds were disclosed by individuals who were former employees of company.

Company refused to provide detailed information concerning the issues and said that its main aim was to educate students. However, EDMC assured people that it is working hard to come up with means that will promote transparency during recruitment of students. Company said that its main ambition is to provide quality education.

Education Management Corporation is a famous company in country. It was commenced sometimes back and it has been expanding steadily since its commencement. It is normally ranked among the best companies in education sector. Nowadays company admits 100,000 students. This confirms that it is a big company.




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