Kentucky Attorney General Jack Conway took action Tuesday against a second for-profit college, alleging that it defrauded government tuition-assistance programs by illegally paying recruiters based on the number of students they enrolled.
Conway joined a whistle-blower lawsuit in federal district court in Pennsylvania against Education Management Corp., the parent company of Brown Mackie College, which has Kentucky campuses in Louisville, Hopkinsville and Fort Mitchell. The U.S. Justice Department and four other states also have joined the suit.
"This type of practice puts both students and taxpayers at risk," Conway said in a statement. "Overaggressive recruiters increase the likelihood that unqualified students are unable to complete their education and unable to repay their loans, which leaves taxpayers footing the bill."
The company, based in Pittsburgh, denied wrongdoing.