U.S. Files Complaint Against Stevens-Henager College Alleging False Claims Act Violations

The United States filed a complaint against for-profit university Stevens-Henager College and its owner, The Center for Excellence in Higher Education, for illegally compensating recruiters, the Department of Justice announced yesterday.  Stevens-Henager operates a chain of for-profit colleges in Idaho and Utah.

In its complaint, the government alleged that the college falsely certified compliance with provisions of federal law that prohibit a university from paying incentive-based compensation to its admissions recruiters based on the number of students they recruit.  Congress enacted the prohibition on such incentive compensation to curtail the enrollment of unqualified students, high loan default rates, and the waste of student loans and grant funds.

Two former Stevens-Henager employees filed the lawsuit under the whistleblower provisions of the False Claims Act, which allows private parties with knowledge of fraud against the government to sue on behalf of the government.  The Act provides for the recovery of triple damages and penalties and allows the government to intervene and take over the allegations, as it has elected to do in this case.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.