Four former employees of the Academy of Art University, a for-profit institution in San Francisco that calls itself the nation’s largest private art school, are accusing it of using illegal tactics to recruit students and defrauding the government out of financial-aid money, according to the San Francisco Chronicle. The four former recruiters are suing under the federal False Claims Act, which allows whistle-blowers to sue on behalf of the government and collect a share of any damages awarded. They allege that the art school adjusted their pay based on how many students they recruited, and included other incentives such as trips to Hawaii. The university said its practices were permitted because of a legal loophole. A district-court judge allowed the case to go forward in June.
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