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August 24, 2009, 08:18 PM ET

Former Employees Accuse American InterContinental U. of Fraud

A whistle-blower lawsuit filed by former employees accuses American InterContinental University of defrauding the federal government and violating a ban on incentive pay for student recruiters, The Atlanta Journal-Constitution reported. Jeff Leshay, a senior vice president with the Career Education Corporation, which owns the university and is also a defendant in the lawsuit, said the company would "vigorously defend against" the allegations.

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