The U.S. Attorney's Office and Department of Justice announced Thursday that a complaint has been filed by the U.S. under the False Claims Act against Stevens-Henager College and its owner, The Center for Excellence in Higher Education.
The complaint alleges the for-profit college chain, which has a campus in Nampa, illegally compensated recruiters. The chain operates colleges in Idaho and Utah.
Congress enacted a law that prohibits a university from paying incentive-based compensation to its admissions recruiters based on the number of students they recruit. The purpose of the law is to prevent the enrollment of unqualified students, high student loan default rates and the waste of student loans and grant funds.