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Bridgepoint Education Inc. Faces Justice Dept. Investigation

In a filing with the Securities and Exchange Commission on Monday, the parent company of Ashford University said it had received a letter from the department indicating that the investigation concerned Bridgepoint’s compensation of its admissions staff. The inquiry is a follow-up, the filing said, to a 2011 audit by the Education Department’s inspector general that found that Ashford may have violated a federal ban on incentive compensation for college recruiters. The university, which is facing accreditation trouble as well, named a new president last week.

In its letter, the Justice Department indicated that it is considering a formal process to obtain evidence as part of its investigation and stated it is open to a voluntary presentation by the Company addressing the subject of its investigation.

Read more at: www.sec.gov

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