Monday, October 24, 2005
Court Decision could Invite Flurry of Lawsuits
A story in today’s edition of Inside Higher Education explores the ramifications of a federal appeals court decision clearing the way for a former admissions director and the federal government to sue Oakland City University for allegedly paying recruiters based on enrollment, despite having agreed not to do so under the Higher Education Act.
According to piece that can be found here on the Web, experts on higher education law said the court’s ruling could “reverberate far beyond the case at hand, by radically altering the interpretation of the federal False Claims Act and undermining the legal validity of guidance from the Education Department and other federal agencies that colleges regularly follow.”
The lawsuit was brought by Jeffrey Main, who said that Oakland City, a private institution in Oakland City, Ind., that is affiliated with the General Baptist Ministries, had compensated him in part based on the number of students he enrolled, which is prohibited by the Higher Education Act, the law that governs federal student aid programs. Main, joined by the federal government, charged that Oakland City violated the False Claims Act because, in initially applying for the right to distribute federal financial aid, its officials had signed a document (known as the Program Participation Agreement, or PPA) in which they made a wide range of commitments, including agreeing not to offer incentive compensation.
Posted by Quitam Help Admin on 10/24 at 12:51 PM
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