Thread regarding University of Phoenix layoffs

UoPX Rap Sheet

Not counting Price v. Phoenix, it's an amazing rap sheet. And with any serial corporate criminal, the true number of crimes is more numerous. It's too bad that more people did not try to stop this when it was possible to reform the school. Fear, threats, and deception have won the day.

The university has paid several government fines and settled whistle-blower lawsuits concerning its admissions practices and education programs.[114] In 2000, the federal government fined the university $6 million for including study-group meetings as instructional hours. In 2002, the Department of Education relaxed requirements on instructional hours.[52][115]
A 2003 lawsuit filed by two former university recruiters alleged that the school improperly obtained hundreds of millions of dollars in financial aid by paying its admission counselors based on the number of students they enrolled, a violation of the Higher Education Act.[52] The university's parent company settled by paying the government $67.5 million, plus $11 million in legal fees, without admitting any wrongdoing.[116][117]
In 2004, the Department of Education alleged that UOPX again violated Higher Education Act provisions that prohibiting financial incentives to admission representatives and pressured its recruiters to enroll students.[118] UOPX disputed the findings but paid a $9.8 million fine as part of a settlement where it admitted no wrongdoing and was not required to return any financial aid funds.[56][119][120] The university also paid $3.5 million to the Department of Labor to settle a violation of overtime compensation regarding hours worked by UOPX's recruiters.[121][122] The University of Phoenix settled a false-claims suit for $78.5 million in 2009 over its recruiter-pay practices.[123]
In 2009, the Department of Education produced a report claiming the untimely return of unearned Title IV funds for more than 10 percent of sampled students. The report also expressed concern that some students register and begin attending classes before completely understanding the implications of enrollment, including their eligibility for student financial aid. In January 2010, the parent company Apollo Group was required to post a letter of credit for $125 million by January 30 of the same year.[124] In 2010, UOPX came under government scrutiny after its Phoenix and Philadelphia campuses were found to have been engaging in deceptive enrollment practices and fraudulent solicitation of FAFSA funds.[125]
In 2014 the US Department of Education's Office of the Inspector General demanded records from the school and Apollo Group going back to 2007 "related to marketing, recruitment, enrollment, financial aid, fraud prevention, [and] student retention".[126] Also in 2014, Arthur Green, a former UoPX enrollment advisor sued the school, claiming that it was violating the US False Claims Act. According to Green, he was fired for blowing the whistle on billions of dollars in fraud. [127][128] Five years later, the case was dismissed in 2019 after the US Department of Justice under William Barr decided not to take the case and the records were sealed. [129]
In October 2015, the U.S. Department of Defense suspended the school's ability to recruit on U.S. military bases and receive federal funding for educating members of the U.S. military. In describing the suspension, The Washington Post noted that "the decision arrives amid allegations that the university sponsored recruiting events in violation of an executive order preventing for-profit colleges from gaining preferential access to the military."[130] Some federal legislators, including U.S. Senators John McCain, Jeff Flake, and Lamar Alexander protested[131] the suspension, which was lifted in January 2016.[132]
The Federal Trade Commission (FTC) began investigating the university in 2015 in regard to an advertising campaign it ran in 2012 through 2014, a campaign referred to as "Let's Get to Work".[34] On December 10, 2019, the University of Phoenix agreed to pay a settlement of $191 million related to charges that it recruited students using misleading advertisements.[34] NPR reported this amount includes $50 million in cash as well as a $141 million cancellation in student debt, though the cancellations "won't affect student borrowers' obligations for federal or private loans."[133] The institution admitted no wrongdoing as part of the settlement, which was at the time the largest FTC settlement against a for-profit school.[34]
In 2016, Apollo Education Group shareholders filed a class-action lawsuit against the corporation, arguing that it withheld information leading to large losses in stock prices. Several of the allegations related to University of Phoenix's recruiting of military personnel and veterans.[134][135]
In December 2019, the university reached a settlement with the Federal Trade Commission.[101] The University of Phoenix said in a statement that much of the 2019 FTC settlement focused on a single ad campaign that ran from 2012 to 2014, under prior ownership. It said it agreed to the settlement deal to avoid any further distraction from serving students, and admitted no wrongdoing through the duration of the settlement.[9] According to FTC commissioner Rebecca Kelly Slaughter, the settlement showed "a complete abdication by the Department of Education, which has oversight of for-profit institutions and controls their access to federal financial aid.” [136]

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