Posts Tagged ‘argosy university’

James Hoyer Client Interviewed in Investigative Report on For-profit Colleges

A hard hitting story on WFTS TV, the ABC station in Tampa, exposed questionable practices in recruiting and job placement at the 2nd largest for-profit college company in the nation, Education Management Corporation, known as EDMC.

The company is at the center of a whistleblower lawsuit filed by former EDMC Admissions Representative Jason Sobek, who is represented by the James Hoyer Law Firm.  EDMC operates several for-profit colleges, including The Art Institutes, South University, Argosy University and Brown Mackie College.

In the report, Sobek was interviewed and explained that recruiters at the schools were encouraged to say whatever it takes to sign students up:

“We were trained to target low-income students, single mothers, women staying at women’s shelters,” Sobek said.

 I-Team investigator Michael George asked Sobek why those groups were targeted.

 “They were easy victims,” Sobek said.

 But there was more to it than that. Sobek says low-income students were desired because they qualify for the most federal aid. EDMC’s schools received $1.8 billion dollars in federal grants and loans in 2010 alone, according a report on for-profit schools by the U.S. Senate. That’s taxpayer money.

Click here to read the full report on the WFTS TV website.

Click here to read another report from WTAE TV in Pittsburgh, the hometown for EDMC’s headquarters.

 

For-profit College Whistleblower Interviewed on ABC World News

Whistleblower Jason Sobek

The whistleblower case against for-profit college giant Education Management Corporation (EDMC) was profiled in an investigative report on ABC World News.  James Hoyer Client Jason Sobek was interviewed and explained why he came forward to expose practices he believes are hurting, not only students, but also taxpayers.

Reporter Mark Greenblatt shared internal documents that show EDMC falsely inflated job placement statistics.

“They manipulated the job placement rates by counting students working in a job that they did not need the degree for,” Sobek told ABC News. “In my opinion, it’s a wretched fraud.”

EDMC is the 2nd largest for-profit college operator in the country.  It owns The Art Institutes, Brown Mackie, South University and Argosy University.  Sobek is a former Assistant Director of Admissions who recruited students to sign up for South University Online.

The story also profiles Brown Mackie student Sarah Fisher who graduated with an Associate’s Degree in Business Management.  Fisher works as a Customer Service Representative at Walmart, a job she found on her own while still attending school.  Since graduating, she’s been unable to find a job in her field of study, but internal EDMC documents show the school counted her as a successful job placement.

In addition, the documents Sobek shared show a Fashion Marketing graduate who works as a shoe salesman and an Accounting graduate who works as a McDonald’s cashier were also counted as successful job placements. Sobek believes counting these graduates as successful job placements is misleading.  He says the company uses them to inflate job placement statistics presented to potential students to get them to sign up and get their financial aid dollars.

ABC News asked U.S. Senator Dick Durbin, the Assistant Majority Leader of the Senate, to review the internal EDMC job placement records.  After his review, Senator Durbin issued a powerful rebuke.

“It’s just plain fraud and your whistle-blower has brought it to light,” Durbin told ABC News. “These students get sucked in by these ads, sign up for debt, sign up for courses that lead to nowhere,” Durbin says.

Click here to watch the ABC World News story and to read the online report.  You can also post a comment on the ABC News website.

Click here to watch another investigative report from WTAE TV in Pittsburgh, the hometown for EDMC’s headquarters.