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A seven-month investigation revealed that a number of Chile's universities are illegally operating as profit-oriented businesses. According to a report conducted by a special investigation committee, eight universities violated anti-profiteering laws amidst findings of increased salaries among executives, circulation of finances between companies under the same private ownership and outsourcing of services as means of generating revenue.

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.

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.

A former Texas Tech University researcher, who was convicted of mishandling harassment complaints and cheating the university out of its share of clinical-research money, was sentenced last week to two years in prison and a $15,000 fine.

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.