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The Department of Justice and four states filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation's second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011.

An Arizona woman pleads guilty to running an elaborate scam that highlights what federal authorities describe as the vulnerability of online education to financial-aid fraud. The scheme embroiled Rio Salado College, home to one of America's largest online programs, in a half-million-dollar con.

Last year, the ombudsman for Andalusia received 150 complaints over the enrolment process, according to the 2008 report just published. This is why he favours harsher penalties for fraudulent applications as there are no clear-cut punitive measures that set an example. However, the province's education ministry maintains that punishment is not the best response, so no sanctions will be taken.

Three former professors at Oral Roberts University have sued the evangelical institution in Tulsa (Okla) filing a petition in state court that accuses the university's president of using university resources to back a local mayoral candidate and to pay for an extravagant lifestyle for his family. The university released a statement denying the allegations.

A well-known obesity researcher will plead guilty to making material false statements in a 1999 grant application worth $542,000 from the US National Institutes of Health. The researcher, who held various research positions at the University of Vermont (UVM) College of Medicine in Burlington could go to jail for up to 5 years.

The U.S. Department of Justice may be breathing new life into a whistle-blower lawsuit that seeks to collect about $1billion from the University of Phoenix, the nation's largest private institution of higher education. The suit was dismissed in May by a federal district-court judge in California on technical grounds but the parties appealed.

A federal grand jury in Kansas indicted a former college-basketball coach last month on charges that he arranged for his players to receive phony academic credit and stole $120,000 in Pell Grants. The former coach faces a total of 51 years in prison and over $1.5-million in fines if found guilty of all counts.

An online university that supposedly granted a graduate degree in business to a pet cat was sued Monday for consumer fraud by the Pennsylvania Attorney General's Office.