Stultz said for some students, “They don’t make it for a year, but still walk away with $5,000 to $10,000 in loans.”Īccording to the lawsuit, the incentives led some employees to enroll students with “severe cognitive disabilities, as well as others with severe mental disabilities,” including a student who spoke to inanimate objects during class. government doesn’t want to pay for anyone and everyone to go to these colleges, only those might get something out of this.” “Taxpayers have a right to make sure their money is spent well and not fraudulently, and that’s why we are pursuing this case,” Stultz said. Using an action known as qui tam - filed on behalf of the government - the ex-employees stand to gain 15 to 25 percent of any settlement or award, plus attorney’s fees. Investigative tips Call or text 858-224-BARK BLOW THE WHISTLEĮnrollment-related bonuses of $300 to $1,100 per student doubled Brooks’ annual $31,600 salary, the lawsuit says. Not true, said Attorney Joe Stultz, who represents whistle-blowers Katie Brooks and Nannette Wride, former Stevens-Henager College admissions counselors who filed the lawsuit last year. In the statement, college officials said their employee compensation policy “does not allow for any bonuses or payments for simply enrolling students,” and says the lawsuit is “an orchestrated attempt by two unprincipled, disgruntled former employees to use the legal system to extort money from the college.” The rule aims to prevent predatory recruiting by schools that enroll ill-equipped students to get federal student aid funds, a major source of revenue. To qualify for Title IV federal student aid programs like Pell grants, Perkins and Stafford loans, colleges must comply with a Higher Education Act ban on incentive compensation for enrollment. The lawsuit asserts the schools “deliberately cultivated a corporate culture that prizes and rewards enrollment of students above all else.” It says staffers who met recruitment quotas would be entered into drawings for 32-inch flat screen televisions and iPods. ![]() Officials at California College San Diego declined a request for an interview about the lawsuit, pointing to a May 9 statement by Stevens-Henager, which calls the claims “completely baseless and without merit.” The lawsuit says college recruiters received cash bonuses, pay raises, upgraded office furniture, movie tickets, resort stays and other perks for enrolling students in violation of federal rules. Whistle-Blower Lawsuit Against California College San Diego
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