Apollo Group Settles Qui Tam Case Relating To Fraudulent Activity By The University Of Phoenix

On December 14, 2009, Apollo Group, Inc., the parent company of the University Of Phoenix, announced that it had reached a settlement agreement with the U.S. Department of Justice and two private whistleblowers resolving allegations that the University of Phoenix violated the false claims act by compensating its recruiters solely on the basis of the number of students they enroll, a policy that abridges U.S. Department of Education regulations that establish guidelines governing receipt of federal financial aid money by educational institutions.  The Apollo Group agreed to pay the Government $67.5 million.  The two whistleblowerswill receive $19 million as their share of the settlement.



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