Posts Tagged ‘for profit colleges’

Attorney Jesse Hoyer Warns of For Profit College Dangers in TV Report

James Hoyer Law Firm Partner Jesse Hoyer is an expert on for-profit colleges. She’s led multiple lawsuits against these school for misleading students and ripping off taxpayers.  Watch the video above to see an excerpt from the report which includes attorney Jesse Hoyer’s interview.

Attorney Jesse Hoyer Interview

Attorney Jesse Hoyer Interviewed

In the report, Florida Investigator Reporter Katie LaGrone examines why public schools allow for-profit colleges in to their college fairs to recruit students, when these schools have a history of predatory behavior.

“We’ve seen first hand the way they mislead students, the way they rip off tax payer,” said Hoyer who sued EDMC (owner of the Art Institutes) a few years ago for fraud.

You can watch the entire report if you click here. Or read more by clicking here.


James Hoyer Partner Interviewed on For-Profit College Problems

James Hoyer Partner Jesse Hoyer interviewed by ABC Action News

James Hoyer partner Jesse Hoyer interviewed by ABC Action News

James Hoyer partner Jesse Hoyer is an expert on for-profit college whistleblower cases having handled several over the past several years, including False Claims Act cases against EDMCCorinthian Colleges, and Ed4Mil.

ABC Action News in Tampa talked with Hoyer for a follow-up report on the sale of Corinthian Colleges to a debt collection company.  The report exposed that many of the same old problems still exist at former Corinthian schools, like Everest College, even with the new owner.

Click here to watch the investigative report or read the story by ABC Action News reporter Adam Walser.

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James Hoyer Part of Global Whistleblower Settlement with For-Profit College EDMC

Jason Sobek - EDMC Whistleblower

Jason Sobek – EDMC Whistleblower

The Department of Justice announced it has reached a landmark, global settlement with Education Management Corporation, the 2nd largest for-profit education company in the country. EDMC agreed to pay $95.5 million to settle allegations that the company violated federal and state False Claims Act laws.

James Hoyer client Jason Sobek, a former EDMC Project Associate Director of Admissions, was one of several whistleblowers who came forward to expose issues regarding how the schools recruited students and reported job placement numbers.

EDMC was accused of using predatory techniques to lure students to sign up, misrepresenting its job placement statistics, and paying employees incentives based on the number of students recruited. EDMC runs several for-profit colleges, including South University, The Art Institutes, Arogsy University, and Brown Mackie College.

“We are gratified that information Jason provided helped lead to the resolution of this case with a landmark, global settlement,” said Chris Casper, James Hoyer Managing Partner. “We are hopeful this will prompt much needed change in practices used by the for-profit college industry.”

The Department of Justice news release explains:

The primary allegation was that EDMC unlawfully recruited students, in contravention of the HEA’s Incentive Compensation Ban (ICB), by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled.  In addition to resolving these and other FCA claims, the global settlement also encompasses an investigation by a consortium of state Attorneys General, of consumer-fraud allegations involving deceptive and misleading recruiting practices.

In addition to offering information and help to federal investigators, Sobek shared his story with the public to help shed light on EDMC practices, warn students and bring about change.   Among those reports were a story with ABC Network News, WTAE TV in Pittsburgh, and WFTS TV in Tampa.

Sobek’s portion of the settlement amounts to $2.5 million which will be paid out over the course of several years. Under the False Claims Act, whistleblowers are entitled to a percentage of a settlement as a reward for bringing forward information that leads to the recovery of money on behalf of taxpayers.

Click here to read more on the settlement in the Pittsburgh Post-Gazette.

Click here to read more on the settlement in the Pittsburgh Tribune Review.

Click here to read more on the settlement from WTAE TV in Pittsburgh.

Click here to read more on the settlement from CBS News.


Miami Herald Exposes Shady For-Profit College Business Practices

Jesse Hoyer - Partner

Jesse Hoyer – Partner

James Hoyer partner Jesse Hoyer was interviewed for this in-depth expose` on for-profit colleges in Florida.  Hoyer’s expertise in the for-profit college arena is extensive, having represented multiple for-profit college whistleblowers who’ve come forward to report fraud against the government.

The Miami Herald spent a year investigating for-profit colleges, interviewing dozens of witnesses and reviewing thousands of documents.  The paper’s findings are quite alarming– from unaccredited schools churning out unprepared healthcare workers who might take care of you or your loved ones; to the politicians who accepted donations from this industry, and then, passed laws paving the way for  for-profit schools to take advantage of students and taxpayers.

In one of the key articles, “Politicians turn Florida into for-profit college paradise,” attorney Jesse Hoyer explains the mess it’s all become:

Tampa attorney Jesse Hoyer, who has handled multiple for-profit college “whistle-blower” cases — legal claims brought by employees alleging fraud — said dishonest practices are “systemic” throughout the industry.

“Somebody needs to go to jail, end of story,” Hoyer said. “The level of deceit that’s going on here, the level of fraud that’s going on here, somebody needs to go to jail.”

Click here to read more in the Miami Herald’s series Higher Ed Hustle.


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.