KY attorney general sues Brown Mackie College's parent company - WDRB 41 Louisville News

KY attorney general sues Brown Mackie College's parent company

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LOUISVILLE, KY. (WDRB) -- Kentucky's Attorney General wants to get involved in a lawsuit against the parent company of Brown Mackie College.

The suit against Education Management Corporation says it illegally paid recruiters based on the number of students they enrolled in the company's programs.

Brown Mackie College has three Kentucky campuses, in Louisville, Hopkinsville, and Ft. Mitchell.

Whistleblowers claim in the lawsuit that the company operated a "boiler room" that paid incentives that included trips to Cancun and Las Vegas.  Those incentives were intended to get recruiters to sign up more students.

"This type of practice puts both students and taxpayers at risk," General Conway said in a news release. "Overaggressive recruiters increase the likelihood that unqualified students are unable to complete their education and unable to repay their loans, which leaves taxpayers footing the bill."

Conway is looking for restitution from Education Management Corporation for financial aid grants paid to Brown Mackie Colleges.  That amounts to more than $6 million from 2004 through 2011.

Two weeks ago, Conway's office sued Daymar College, saying it was keeping students from buying textbooks and supplies from cheaper sources than the college itself.

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