U.S. reaches $95.5 million settlement with parent company of Brown Mackie College


By: Joe Mandak and Eric Tucker/Associated Press

PITTSBURGH (AP) — A Pittsburgh company that enrolls more than 100,000 students at for-profit trade schools and colleges across the U.S. is not admitting wrongdoing as part of a $95.5 million settlement with the Obama administration.

The settlement was announced by the Justice Department on Monday. It resolves allegations that Education Management Corp. used illegal enrollment incentives to pay recruiters and exaggerated its career-placement ability.

The company denies that but says it will “provide more transparency during the recruiting process” of students.

The firm operates schools under four brands: the Art Institutes, South University, Argosy University and Brown-Mackie College.

The penalty will be paid through 2022. The company will also forgive loans to students who left its schools within 45 days of their first term. The loan forgiveness applies to students that left school between from 2006 through 2014.

Tucker reported from Washington, D.C.