Tuesday, August 9, 2011

The Department of Justice and Four States Suing the Education Management Corporation (EDMC)

Tamar Lewin reported on August 8, 2011 that the DOJ and four states are suing the Education Management Corporation for fraud.  AEM reported about the suit in early May. Just a reminder that breaking news relating to student loans and higher education finance reform can generally be found here first.

The whistleblowers have 4 states backing them, so that's why it's now getting headline news again in the NYT and the Wall Street Journal.

Here's what is important, and something I mentioned in the body of the article:

The board of directors for the Pittsburgh-based company includes John R. McKernan, Jr. MrKernan was the 71st governor of Maine, and was also a member of the U.S. House of Representatives. He is married to Senator Olympia Snowe (R-ME). Between 2005 and 2010, Snowe received $13,500 in campaign donations from Goldman Sachs.

Lewin chose to put this information in the very last paragraph.

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