Search Page

Five universities in the United States agreed to settle a lawsuit accusing them of colluding on financial aid and admissions violations, according to new court filings. Yale, Columbia, Duke, Brown and Emory universities will pay a combined US$104.5 million to settle their portions of the case, which was brought by five former students against more than a dozen schools. The suit alleges the universities violated antitrust law when they ignored their pledge to not weigh a student’s ability to pay tuition fees when considering whether or not to accept, a practice referred to as ‘need-blind’ admission.

According to the State Chancellor's Office, 20% of applications for California community colleges are fraudulent. A radiation oncologist at UC Davis is one of the thousands who have had their identity stolen to create fraudulent student applications with the intention to steal federal aid, a practice that has resulted in an unprecedented influx of ghost students. City College of San Francisco reported 59 fraudulent students and has identified 29 ghost students who have received $22,418 to date.

Three Georgia women and an Alabama man pleaded guilty to conspiring to defraud the US Department of Education’s Federal financial aid programs worth millions of dollars. According to the Justice Department, they admitted enrolling people who were not eligible to attend college and completing financial aid applications using fake students’ names; they also did fake students’ homework and exams and manipulated grade requirements to continue qualifying for Federal financial aid.

The Department of Justice reports that two education officials have been sentenced to jail after pleading guilty to fraudulently enrolling people in virtual schools and then claiming money from public funds on their behalf. The districts received payments from the Alabama Education Trust Fund as if the students were attending public schools while the defendants misappropriated state money through direct cash payments and payments to third-party contractors owned by various co-conspirators.

The US Attorney’s Office arrested a nurse practitioner on federal charges of wire fraud, financial aid fraud and aggravated identity theft. She used doctors’ pedigree information and forged signatures to certify disability diagnoses that got more than $10.5 million in loans discharged for at least 125 people. She defrauded the federal Department of Education's Total and Permanent Disability discharge program, which relieves the student loans of those who suffer from permanent physical or mental disabilities.

A former Yale School of Medicine finance director and administrator pleaded guilty to wire fraud and false tax returns over a nine year period. She ran an illegal business that involved the bulk purchase and resale of computers and electronic devices for a total of $40 million in losses for the university. Since the incident, the university has worked to identify and correct gaps in its internal financial controls.