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For-Profit College Group Sued as U.S. Lays Out Wide Fraud

By TAMAR LEWIN August 8, 2011

The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation's second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011. While the civil lawsuit is one of many raising similar charges against the expanding for-profit college industry, the case is the first in which the government intervened to back whistle-blowers' claims that a company consistently violated federal law by paying recruiters based on how many students it enrolled.

DEVRY IS NEXT. The Department of Justice is currently reviewing the many complaints from students & whistle-blower employees. DeVry University & other for-profit schools educate less than 10 percent of all college students but get 25 percent of all Pell grants, he said. For-profit school students make up 44 percent of the federal student loan defaults. Part of this is due to the fact that for-profit schools' consumer base are disproportionately poor students and students of color who are the first in their families to go to college.

Too many students are paying $20,000 to $30,000 for associate's degrees but their diplomas aren't landing them jobs.

"They're no more employable than they were before and now they're deep in debt," said Durbin, the assistant Senate majority leader.

For-profit schools are fighting to keep their profits and attempting to stop new regulations that would withhold federal education loans and grants from its schools with high student debt and low student loan repayments.

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Anonymous
#518263

Business News- DeVry is going to eliminate approximately 570 positions. DeVry shares plunged on dismal fiscal Q4 preview and for-profit educator DeVry said it plans to cut its workforce, citing cost pressures and continued weakness in student enrollment.

The company is working to improve its near-term performance by aligning its costs to its enrollment levels. In April 2012, DeVry said its fiscal third-quarter earnings also slumped reporting that enrollment of new students continued to drop at its namesake university.

Google it and read what all the business news is reporting including DeVry ‘s CEO Mr. Daniel M. Hamburger about eliminating 570 positions.

The only thing prospective students have to do is read DeVry financial reports which provides plenty of info how DeVry is losing ground in maintaining their student enrollments. If you’re still willing to risk your university education to this failing company by all means ‘Go for it’ but don’t forget you will still have to pay the Piper aka Uncle Sam for those Federal Loans afterwards unless you’re rich and paying cash.

Those Federal Loans will haunt you until they’re paid since Uncle Sam doesn’t care if you received a decent education or not – job or no job. Something to think about before taking that risk with a for-profit school l like DeVry .

Anonymous
#518185

I am in the third week of my second session and yesterday I called DeVry and asked to be dropped. They are setting me up to fail, in my algebra class it clearly states on the course description that I must pass the class with an 80% although the professor will not allow me to progress to my next weeks homework unless I make an 80% on this exam and every exam which, I did not I only made a %60. So he tells me I only get "3" tries and after that it's a case by case basis to gain another attempt. Mind you I am an online student and was dealing with difficulties with the system and was actually booted out of my exam, which used one of my exam attempts.

Here in my professors own words-

"I understand what you're saying but please read the directions; I think you missed something in there. You DO need to get at least 80% on the tests too, in order to move on. It says that you can NOT pass the course if you don't get 80% on the "Unit Exam".

One more time, please understand my situation; I also have to follow the

rules. As a matter of fact, I can not change those settings and the system

will not let you proceed. Does that make sense?

What I don't understand is if this was such a strict rule to adhere to why in the world didn't he emphasize that prior to us taking the exam so we could have been more diligent when providing the answers. As it is the online scene is touch and go, sometimes the system works and sometimes it doesn't with this class.

Anonymous
#462594

i went to devry for a quarter. I realized within the first 3 weeks they were scam artists.

No legit school would be set up like that. They are no different than any other scam artist or telemarketer. they call 20 times a day even after you enrolled. prior to it, they will do anything to get you enrolled.

i looked into their program 12/27/11 and was enrolled and in classes 3 days later. even with the holiday delays. They convinced me they wanted me to go there and they even have a "test" set up prior to enrollment to make it feel more legit. Well about a week into class, i looked at my financial aid statement.

(p.s a quarter is 8 weeks) and it said i was receiving 6545.00 for the semester and being charged 2250.00. well basically they were dishing out 4000 dollars extra, more than i needed. ANY legit university would allow the option to decline loans that you dont need. scholarships and grants indeed covered tuition.

they make it so high so once your unenrolled due to the high loan amounts or failing their "classes" you owe way more than you should. i asked and they ignored. i called, they put me on hold. well, i informed them i hired a lawyer and also that i wanted unenrolled imediatly by the end of a 3 day period.

i did hire a lawyer, a reputable lawyer. they have not bothered me since and i am now enrolled at the university in my town of toledo, a big and very reputable university. wow, anyone going there really needs to get out of there. They will make you default and charge you way more than their tuition list claims.

almost twice as much. these financial aid people do not know what they are doing whatsoever, they cant even make a decent statement. my statement changed three times, kept raising and falling and new "loans, grants and scholarship" were invited. also, fasfa declines them.

yeah, contacted someone in that department.

devry was denied 8 times to receive my REAL loans. they may indeed actually not even charge real loans, they expect you to pay back fake loans.

Anonymous
#437546

It took me two eight week terms to realize that DeVry Chicago trolls impoverished high schools in Chicago, convinces many African American students to take big loans, and then dumps them in remedial classes even though they have autism and dyslexia. The kids fail and still owe back loan money.

I quit. The place is pathetic.

Anonymous
#430557

I am a former recruiter for DeVry, and have proof that my salary was increased when I made my goal for the number of students I was able to convince to enroll at DeVry. Along with several of my co-workers, we received pay cuts when we failed to put the set number of students in classes-the DeVry mantra. Weekly meeting were held by DeVry corporate personnel who warned us of the consequences if recruiters didn’t fill the classes any way they can – including lying about the potential employers waiting to hire DeVry graduates and even students who were enrolled. We were told to tell new applicants that DeVry graduates made no less than $45,000 within 6 months of graduation. Recruiters were given script-like scenarios to practice with other recruiters so we could respond accordingly to applicants who were undecided of signing the dotted line. Hook, line and sinker as my manager would say. It was necessary to close the deal to convince as many new students as possible to get our salary increases. One manager went as far as bringing in a cow bell he’d ring every time he received a new student’s enrollment papers. Lucky for the applicant they were being walked to the financial office while the front admission office laughed hysterically of how many *** people enrolled at DeVry-plenty to keep their own jobs.

Students with little academic qualifications were told that everyone who had interest, desire, and motivation could graduate in 3 years and have a rewarding , lucrative career, even in a tough job climate. Most students realized that some courses were way above their capabilities and graduating in 3 years was almost impossible unless they had parents with large wallets. As a result, DeVry increasingly became known as the paper-mill university around town. Money = Degree – the Education.

It's all about cash flow. As recruiters we were trained to guilt trip and trick families into sending their kids to DeVry. We were taught how to show parents and students that they could afford DeVry by breaking the cost into smaller pieces making it look affordable to anyone. What was routinely omitted was the reality of the actual cost of a DeVry education -minus the illustriousness education promised by DeVry but fail to deliver -minus the job placement students are led to believe they’d get once they graduate. Still want to be a statistic of DeVry’s Failure and Risk your College Education to a bunch of thieves at DeVry? It’s your life but don’t ever say you weren’t warned if you read all the negative reviews from past students and employees and didn’t think twice.

Anonymous
#369214

How does it feel that Devry University played you like a fiddle while getting rich at the expense of our education ? Time for Change – Regulate the *** out of these dishonest businesses.

Education advocates are taking this personal in Brazil telling their governments be more vigilant of American based for- profit schools. The Time is Now to Take a Stand.

Anonymous
#367290

For-profit colleges have seen enrollments plunge as they have been required to pull back on aggressive recruiting practices amid criticism related to high student-loan default rates. Having government regulations on these for-profit colleges makes it tough in this economy for greedy dishonest businesses like DeVry.

Anonymous
#367008

Biggest percentage decliners on New York Stock Exchange at the close of trading on Halloween: No Surprise there!

DeVry Inc.

fell 16.8 percent to $38.36. :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p :p

Anonymous
#366487

It s time to spread the word! Driven by the resilience and stories of ordinary people.

Continue the ongoing communication with government agencies to regulate corrupt businesses practices.

Creating a better change for everyone in the world allowing them the freedom to have a voice in seeking justice.

There are people working overseas to make sure S.American countries like Brazil don't get scammed by for-profit colleges like DeVry. Our people are working to make sure they protect their vested interest of education rights by imposing strict regulations and guidelines on these uncontrolled businesses.

Anonymous
#365961

Voilà! In view, a humble vaudevillian veteran cast vicariously as both victim and villain by the vicissitudes of Fate."V" is in every one of us who still cherish FAIRNESS, JUSTICE and EQUALITY...Let his message live forever!"

Education should not be associated with scholasticism. There are men who have never seen the inside of a university who are superior to those and worth more to society than those who carried away the highest honors.

Anonymous
#365941

As their student enrollments in the United States continue to shrink, some for-profit schools are hoping to find growth opportunities in other countries. The overseas market is about 8 times larger, with college participation rate well below the U.S.

in many areas, so there are lots of opportunities. For-profit schools like DeVry will have a lot of opportunities to get rich without providing a decent university education. Paper-mill degrees will run rampant in Latin America and India.

Better there than the US. Latin America and India SUCKERS!

Anonymous
#365935

Recruiters were told to enroll applicants "regardless of their qualifications, including applicants who are unable to write coherently, applicants who appear to ADAs to be under the influence of drugs, and applicants for EDMC’s online program who do not own computers. Since DeVry had to stop giving commissions to recruiters they now get bonuses instead.

They’ll always find a scheming way to get around new regulations.

Let them go overseas to Latin America and India with their paper-mill degrees. Those countries are too ignorant to know how For Profit schools turn out losers.

Anonymous
#365932

As their student enrollments in the United States continue to shrink, some for-profit schools are hoping to find growth opportunities in other countries. The overseas market is about 8 times larger, with college participation rate well below the U.S.

in many areas, so there are lots of opportunities. For-profit schools like DeVry will have a lot of opportunities to get rich without providing a decent university education. Paper-mill degrees will run rampant in Latin America and India.

Better there than the US. Latin America and India SUCKERS!

Anonymous
#361473

Don't forget to mention when Governor Scott FIRED ALL of Central Florida Workforce Staff and their Board of Directors -

Mr. “STEVE BROWN” - PRESIDENT OF DEVRY CENTRAL FL SCHOOLS - was also one of FLORIDA'S WORKFORCE CENTRAL’S DIRECTORS.

Must be one of DeVry's success stories.

You're Fired !!!!!

Steve Brown was last seen wearing his red "Super Hero" cape which Workforce Central gave out to all the unemployed. Steve keeps it hanging in his DeVry office in case he needs to loan it to one of his DeVry graduates who can't get a job with their paper-mill degree.

Anonymous
#352982

DeVry has most of their schools in inner city areas. Can you guess why?

Free government aid.

DeVry has expanded to Brazil and the Caribbean to further collected on government aid provided to poor students.

The level of education is low in both so DeVry doesn't have to provide much of an education. Anything is better than what they had.

Anonymous
#352574

Their stocks are going down, down, down into ***. Maybe there is a God after all.

:grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin

Anonymous
#351449

As a previous DeVry student and employee I got to see both sides of DeVry. I also chose not finish my degree at DeVry knowing the end results will not get me into the job

To all students considering on enrolling at DeVry - Do your research on DeVry’s unethical business practices. There’s plenty of info on the Internet to give everyone a good idea of the setbacks you’ll face upon enrolling at Devry. Not to mention the doors of opportunity that don't consider applicants with a DeVry degree.

You will realize DeVry is a business out to make a profits for themselves through grants, scholarships and free govt student aid money. DeVry’s unethical tactics got them where they are today in how easily they can make huge profits without having any regulatory requirements on the education they provide. DeVry is only about getting their money and doesn't care if students get a reliable education or how they will pay for their loans afterward. The new wave of capitalism without regulations.

Anonymous
#342078

Don't let the winds of life take your ship without steering. Get a college education where they truly teach the foundations you'll need in life.

DeVry is NOT that place.

They are a business and their only motives are to get rich by enrolling any student who can pay cash, or has student scholarships like Bright Futures and government grants and military financial support.Please don;t waste your years at DeVry to realize in the end that the paper mill degree won't even get you through the front door of reputable companies. Most well-known companies will not consider you if DEVRY is where you graduated.

Anonymous
#339050

Schools like DeVry only exist to make money, Not to educate, and each one is infamous for putting out uneducated and unprepared students. DeVry, ITT, etc. are glorified diploma mills who are helping to ruin the value of a college education by flooding the job market with meaningless degrees. Every employer I've talked about this with regards these schools as a joke and some even see a "degree" from one of these as an instant disqualification. Everyone I've talked to who has attended one of these schools has said the education was very easy and that they weren't getting much out of it. Open book tests, notes, and class assistants used during exams made it easy to pass. Our instructor told our class that everyone will pass since its his job on the line. funny when he said if ethics mattered he wouldn't had lost his life earnings in the crooked stock markets.

At DeVry the student is tricked into thinking that enrolling there will put them on a stable career track when in reality they end up exactly where they were before, lacking any serious credentials but with the additional burden of tens of thousands of dollars in debt to these fraudulent institutions. These schools are out to make a fortune on the backs of desperate young men and women, some of whom are parents and most of whom are poor.

I see great truth in the saying that "money is the root of all evil." DeVry is a for-profit institution. Those whose primary goals are money cannot be trusted to look out for your best interests.

I might have a different opinion on regulation if these colleges were worth the cost and actually gave a quality education. But since that isn't the case, regulate the *** out of them

Anonymous
#325853

Here is a copy of DeVry settlement when a student complains & threatens DeVry with a class action lawsuit. DeVry lawyers are paid to work like the Mafia to keep your mouth shut.

SETTLEMENT AGREEMENT AND GENERAL RELEASE

This Settlement Agreement and Release (the “Agreement”) is entered into between DeVry University, Inc. (“DeVry”), and Plaintiff

Incorporation of Recitals. The recitals set forth in the Background section above are incorporated in the body of this Agreement as if fully set forth herein.

2. Monetary Consideration. Upon the later of (a) receipt of this Agreement signed by all parties and (b) notice that Plaintiff has dismissed the Complaint with prejudice, DeVry shall forgive the outstanding balance on Plaintiff's account with DeVry and shall not seek payment of the outstanding balance on this account from Ellis; provided that if Plaintiff ever re-enrolls at DeVry or another institution owned or operated by DeVry Inc., the balance on his account resulting from Plaintiff's attendance at DeVry at any time prior to his execution of this Agreement shall become immediately due and payable. 3. As an element of, and in order to induce DeVry to enter into, this settlement, Plaintiff and his heirs, representatives and assigns, do hereby absolutely and unconditionally forever release, discharge and acquit DeVry and its parents, subsidiaries, affiliates, officers, directors, partners, members, stockholders, employees, agents, attorneys, successors and assigns, of and from any and all claims, demands, obligations, liabilities, indebtedness, breaches of contract, breaches of duty or any relationship, acts, omissions, misfeasance, malfeasance, cause or causes of action, debts, sums of money, accounts, compensation, contracts, controversies, promises, damages, costs, losses and expenses, of every type, kind, nature, description or character, and irrespective of how, why, or by reason of what facts, whether heretofore or now existing, of whatever kind or name, whether known or unknown, suspected or unsuspected, liquidated or unliquidated, arising from any time leading up to and including the date which this Agreement is signed by him; provided however, that Plaintiff does not release and expressly preserves the right to enforce his rights under this Agreement and to compel performance and satisfaction by DeVry of its obligations hereunder.

4. No Admission of Liability. The execution of this Agreement shall not be deemed or construed as an admission of liability by DeVry, and DeVry expressly denies liability of any nature whatsoever arising from or related to the subject of the Agreement.

5. Confidentiality; Public Statements. The parties agree that both the existence of the Agreement and the terms contained in this Agreement are confidential and shall not be disclosed to any third parties, except that the parties may disclose the foregoing (a) to the extent required by legal process, court order, or applicable law, rule or regulation, (b) to their respective attorneys, accountants, auditors or financial advisors, and boards of directors, and to governmental bodies to the extent necessary to comply with any applicable tax or financial reporting laws, rules or regulations, and (c) in the event of a breach to allow the non-breaching party to enforce his, her, or its rights under the Agreement in the courts in the Chicago metropolitan area. In the event of any inquiries by any third party concerning the status or resolution of the Complaint, no information shall be disclosed other than that such matters have been “resolved.”

6. Non-Disparagement. Plaintiff agrees to refrain from any communications with third parties, written or oral, that could reasonably be considered to constitute disparagement of DeVry.

7. Non-Cooperation and Non-Solicitation. Plaintiff agrees that he will not assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against DeVry, unless compelled by lawful subpoena or court order. Plaintiff further agrees that he will not solicit or encourage any third party to present or prosecute any disputes, differences, grievances, claims, charges, or complaints against DeVry.

8. Understanding of the Parties. (a) This Agreement constitutes the entire understanding between the parties and supercedes all prior agreements, agreements in principle, and written or oral communications with respect to the resolution of the Complaint. (b) This Agreement may not be modified, amended or terminated, except by a written agreement which is signed by each of the parties hereto. (c) Each party represents and warrants (i) that he or it has had the opportunity to obtain independent advice from counsel of its choosing in negotiations for and the execution of the Agreement, (ii) that he or it has read the Agreement or have had the same read to them by his or its counsel, and (iii) that he or it is fully aware of its contents and legal effect.

9. Authority. Each person executing this Agreement represents and warrants that such person is lawfully authorized and empowered to execute the same as an individual or on behalf of the entity on whose behalf such person is signing, and that upon such execution this Agreement will be binding on such entity without any further approval, ratification, or other action.

10. Binding on Successors and Assigns. Neither this Agreement nor any interest hereunder may be assigned by any party without the prior written consent of all other parties to this Agreement. This Agreement shall be binding upon the parties and their respective successors, permitted assigns, heirs, and executors notwithstanding any reorganization, merger, or consolidation of any party hereto.

11. Severability. The parties agree that, if any term or provision of this Agreement is found to be invalid or unenforceable for any reason, then the invalid or unenforceable term or provision shall be severed so as to make the Agreement enforceable to the fullest extent permissible under applicable law.

12. Further Assurances. The parties agree to execute any additional documents to do all other acts reasonably required to effect the intent and purposes of this Agreement.

13. Applicable Law. This Agreement shall be governed and construed in accordance with the laws of the State of Illinois, irrespective of its conflict of law rules.

14. Headings. The paragraph headings contained herein are for convenience only and are not intended to add or subtract from the text hereof.

15. No Third Party Beneficiaries. Nothing contained herein is intended to confer any rights on any person or entity other than the parties hereto. No third party beneficiary rights shall be conferred on any party by virtue of this Agreement or any term or provision hereof.

16. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original and all of which, taken together, shall constitute one agreement binding on all parties.

17. Court Jurisdiction. The parties agree that in the event of a breach of this Agreement, the party seeking enforcement shall be entitled to specific performance in a court in the metropolitan area of Chicago, Illinois and the prevailing party shall be entitled to an award of its costs and attorney fees in connection with such application. The parties submit to the jurisdiction of the courts in the metropolitan area of Chicago, Illinois, to resolve any disputes arising from, or relating to, this Agreement.

18. Agreement as Evidence. Nothing in this Agreement shall prohibit a party from offering the Agreement as evidence in a legal, administrative, or quasi-judicial proceeding involving a claim released herein.

19. This Agreement shall be construed as a whole and not for or against any party.

20. Any notice desired or required to be given hereunder shall, unless otherwise specified, be sufficient if in writing and personally delivered or sent by certified mail, return receipt requested, as follows: If to DeVry, to: Laura Sitarski DeVry Inc. 3005 Highland Parkway, 7th floor Downers Grove, IL 60515-5799 or to such other address as the addressee may specify in a notice fully given to the sender as provided herein. AGREED AND ACCEPTED.

Dated: DEVRY UNIVERSITY, INC. By: ____________________ Name: ____________________ Title: _____________________

:eek

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