Diploma-mill owners are an elusive bunch. They flood e-mail boxes with offers of cheap college degrees, and collect payment through Web sites, then filter that money into overseas bank accounts. When the police try to shut one of the businesses down, the owners just set up shop elsewhere, often in a poor country with weak fraud laws. Unable to snuff out these illegal businesses, many states have changed their strategy: if you can't catch the dealers, go after the consumers. A handful, like Illinois, Indiana, and New Jersey, have recently criminalized the use of fake degrees.

Graduates of a radiology-technology program in Kentucky have sued the institution, claiming that it lied about the program's accreditation status. The institution's three-year radiology-technology program costs about $33,000 to complete, and is still not accredited by the proper organization, the Joint Review Committee on Education in Radiologic Technology. Nine students have graduated from the program, and 75 are currently enrolled. Without accreditation, students cannot take the national licensing exam and earn the proper credentials for employment.

Northern Kentucky accused five professors of fabricating data in scholarly papers, duplicating large chunks of their own work in several papers, plagiarizing, and listing as authors a number of professors at the university who did not contribute.

A non-profit corporation that provides a high-speed computer network to colleges in New York State agreed last month to pay the federal government $1.4-million in a lawsuit alleging that it had misused a federal grant.