A False Claims Act suit filed in Newark federal court against Career Education Corporation claims the operator of for-profit vocational schools engaged in widespread fraud in order to participate in federal student financial aid programs.
According to the suit, filed May 16, the publicly traded company based in Schaumburg, Ill., allegedly made up phony placement statistics to exaggerate the number of its graduates working in their fields of study, and misrepresented the accreditation status of some of its programs, in order to remain eligible for federal funding.
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