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Whistle-Blower Case Against U. of Phoenix Is Settled

December 14, 2009, 10:13 am

The parent company of the University of Phoenix said on Monday that it would pay $67-million to the U.S. government, plus $11-million in lawyers’ fees, to settle a 2003 “whistle-blower” lawsuit by two former student recruiters, who accused the company of obtaining federal student aid under false pretenses. The company, Apollo Group Inc., noted that the settlement, first discussed in October, includes no admission of wrongdoing.

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10 Responses to Whistle-Blower Case Against U. of Phoenix Is Settled

amcneece - December 14, 2009 at 4:22 pm

Paying $78-million to avoid being found guilty sends a pretty clear message.

willynilly - December 14, 2009 at 8:17 pm

Without a doubt there was no wrongdoing at all on the part of the University. Who in the world would think that. The time and talent of the officers and directors of the institution was far more valuable than to waste it by spending two weeks in court proving their innocence.

karennokill - December 15, 2009 at 1:08 am

Yes, paying $78 million dollars in an out of court settlement, and claiming that no wrong doing was done, epitomizes the word “guilty.”Why not go to court University of Phoenix, and prove to the judge before the wooden mallet, that you are innocent? That way you can either save $78 million dollars or, forced to be shut down entirely for fraud, breach of contract, and false advertising!Go to court and prove it to judge that you are innocent! Prove it! The truth is, University of Phoenix, you can’t prove your innocence!Soon, this diploma mill is going to be shut down for good. You might think you’ve gotten away, yet again, with another out of court settlement, but soon, and very soon, the Phoenix will never be re-born, ever again!

truescholar601 - December 15, 2009 at 11:05 am

Hmmmmm… looks like someone needs to define diploma mill.This is nothing but a witch hunt. Where is the objectivity?I think that if the federal government saw true merit in this issue it would have joined the lawsuit as a third party. Instead, a couple of years later it filed a “friend of the court” brief… simply opining that the courts should rule against Phoenix. Not much, if at all, evidentiary support is necessary in doing so. The federal government is the real criminal here… it’s their good ole boy policies that allowed this type of behavior in the first place. Phoenix, as well as many for-profits and not-for-profits, use the wiggle room to make things happen for their employees. I work for a state institution and even though recruiters are not given “merit” increases, they are paid in other ways… comp time, free travel, dinners, and I cannot count the number of cases of misuse of the University’s American Express card… each recruiter is given one with his or her name on it. As for retention, Phoenix’s true retention rate lies within the average of all IHLs (traditional and nontraditional). Most of Phoenix’s 400,000 member student body consists of nontraditional students. A very small percentage of its students are first time college attendants. Many of them transfer into the university with college credit, which immediately takes them out of the DoE’s frame for calculation. Most of them are working adults who dropped out of school (for various reasons) on average of 10 years prior. So, if you continue to use the DoE’s method of calculating this rate, you’re simply wrong. Phoenix has issued 2 annual reports. It’s most recent provides a candid look into the university’s progress. http://www.phoenix.edu/about_us/publications/academic-annual-report/2009.html . I commend them for their efforts to be transparent. (I am waiting for this type of accountability to be published at my own institution.)For-profit or non, each academic institution has to make money. Universities such as Michigan, have opted out of public appropriation to get away from the private funds cap that looms over its head. By doing this, the university is able to raise as much in private funds as necessary and invest these funds in any way necessary. Isn’t this profit making? Tuition is still increasing and competitive salaries are still increasing. (I just won a financial award and will be going on sabbatical beginning in the summer…. more paid time for doing nothing).While many institutions maintain a nonprofit status, they operate with a for-profit structure. So the status isn’t the issue… it’s public policy.Phoenix and other for-profits actually save the taxpayer millions of dollars per year. Even though many students receive pell grants (which does not completely cover tutition at most institutions) most of these working adults are having their education paid for by their employers or are paying out of the pocket. So all in all… lets look at the big picture here. Lets look at the real economics and the real policies that allowed and will continue to allow this type of behavior.

karennokill - December 16, 2009 at 2:26 am

This information regarding “diploma mills” was taken directly from the Council for Higher Education Accreditation’s web site at URL: http://www.chea.org/degreemills/default.htmWhat questions should I ask to determine whether a degree provider is a “mill”?If the answers to many of the following questions are “yes,” the degree provider under consideration may be a “mill”:Can degrees be purchased? Is there a claim of accreditation when there is no evidence of this status? Is there a claim of accreditation from a questionable accrediting organization? Does the operation lack state or federal licensure or authority to operate? Is little if any attendance required of students, either online or in class? Are few assignments required for students to earn credits? Is a very short period of time required to earn a degree? Are degrees available based solely on experience or resume review? Are there few requirements for graduation? Does the operation fail to provide any information about a campus or business location or address and rely, e.g., only on a post office box? Does the operation fail to provide a list of its faculty and their qualifications? Does the operation have a name similar to other well-known colleges and universities? Does the operation make claims in its publications for which there is no evidence?The obvious question that sticks out here is: “Does the operation fail to provide a list of its faculty and their qualifications?”The answer is simply, yes.Where on the University of Phoenix web site (www.phoenix.edu) can you find a list of faculty members by name, by department, by program that they teach in, and also, their qualifications? Where?How are students able to verify the credentials of such “facilitators?” By calling colleges the “facilitators” earned their degree from before the first day of class?Here’s the big problem, ACCREDITATION OF ANY COLLEGE OR UNIVERSITY IN THE UNITED STATES IS VOLUNTARY!If the U.S. Department of Education (USDE) and the Council for Higher Education Accreditation (CHEA) both do not believe in diploma mills, then why is accreditation of any college and university that operates in the United States, voluntary and not mandatory?Look at how many students defaulted on their University of Phoenix loans in 2008, more than 10,000 students! This is the only for-profit private university that has such a high number of defaults.

truescholar601 - December 16, 2009 at 9:54 am

So you brand Phoenix as a diploma mill because you cannot find who teaches there? Out of all the questions that is the only one you can answer yes to and blame the entire system? That is ridiculous! Phoenix guarantees that their faculty are working professional who possess the credentials necessary to teach in their programs. While I do not work there, I see that regionally accredited degrees are a must. Phoenix is not a research institution… it is a teaching institution. I think that if you were to request such information you would receive one. The accrediting bodies possess this information and if you request it from them, you’d receive it as well.Phoenix has regional accreditation and professional accreditation for each of its programs: Nursing, Counseling, Education, and Business. It is also a member of AACSB International…. which even though is not an accreditation, the institution must still be approved. The same accrediting bodies that accredit Phoenix’s programs are the same ones that accredits a majority of the academic programs in their respective fields. So again, why is Phoenix a diploma mill?

truescholar601 - December 16, 2009 at 11:14 am

Lets readdress those questions shall we?Can degrees be purchased? Is there a claim of accreditation when there is no evidence of this status? NOIs there a claim of accreditation from a questionable accrediting organization? NODoes the operation lack state or federal licensure or authority to operate? NOIs little if any attendance required of students, either online or in class? NOAre few assignments required for students to earn credits? NO (mba alone is 46 credit hours)Is a very short period of time required to earn a degree? NOAre degrees available based solely on experience or resume review? NOAre there few requirements for graduation? NO… in most cases moreDoes the operation fail to provide any information about a campus or business location or address and rely, e.g., only on a post office box? NODoes the operation fail to provide a list of its faculty and their qualifications? NO (unless they deny your request)Does the operation have a name similar to other well-known colleges and universities? NODoes the operation make claims in its publications for which there is no evidence? NO

truescholar601 - December 16, 2009 at 11:15 am

Oh… Can degrees be purchased… NO

karennokill - December 23, 2009 at 4:01 am

December 22, 2009 (http://myphoenixmistake.webs.com)University of Phoenix Fraud 1976 – 2010 (http://www.phoenix.edu/) The University of Phoenix is a Huge Education Scam!U.S. companies and international companies do not hire University of Phoenix graduates!If you enroll at the University of Phoenix and graduate, you will be left with a worthless degree and student loans to pay back!The University of Phoenix operates only to take billions of dollars in student loan money each and every year, and teach students nothing. Students don’t learn anything in their unaccredited programs of study. It’s sad that the University of Phoenix Online has to lie to students just to make a profit. This university only cares about money and not the quality of education it is giving to its students who want to better their lives!Earn $9.5 Million Dollars Just Working For The University of Phoenix As An Enrollment CounselorIf you are currently working for the University of Phoenix as an enrollment counselor and want to make $9.5 million dollars like two former University of Phoenix enrollment counselors did, you can make that money in 2010! All you have to do is save all your emails, take pictures of your pay incentives on the bulletin boards or chalkboards, and lastly, record any conversations in your workplace with your mobile phone. Call up a lawfirm, present all your evidence to an attorney, and the lawfirm will file what’s called a “whistleblower” lawsuit. Former University of Phoenix enrollment counselors, Mary Hendow and Julie Albertson, each earned $9.5 million dollars just by working at the University of Phoenix Sacramento campus for less than two years.”For their persistence, the whistle-blowers will share $19 million.” That’s not fair, all former University of Phoenix enrollment counselors should all be paid $9.5 million dollars too by the University of Phoenix.You can read that information here in an online article posted December 15, 2009, by The Sacramento Bee: http://www.sacbee.com/courts/story/2395810.htmlThis is a cool 2009 Christmas present for these former University of Phoenix enrollment counselors. Get your $9.5 million dollars too and blow the whistle today!The University of Phoenix claims it hasn’t done anything wrong so, let’s all keep filing lawsuits against the University of Phoenix and they will pay us in out of court settlements.All of their Information Technology programs are unaccredited by the Accreditation Board of Engineering and Technology (ABET) and the Association of Computing Machinery (ASM)All of their Information Technology programs offered as of December 18, 2009 are all unaccredited by the Accreditation Board of Engineering and Technology (http://www.abet.org/). The Accreditation Board of Engineering and Technology (ABET) assures Information Technology students that their programs of study will enable them to master the knowledge and skills necessary so that they are able to become gainfully employed in the Information Technology profession after graduation. Your University of Phoenix Online Information Technology degree won’t get your foot in the door anywhere! Go and apply for an Information Technology job right after graduation and not one company will hire you. Search for any University of Phoenix Information Technology program on ABET web site and you won’t find any accredited programs. Here is the link to do that search:http://www.abet.org/AccredProgramSearch/AccreditationSearch.aspxNo Information About GraduatesWhere can you find a list of graduates, by name, by program they completed, and by company that the graduate works for? No where! The reason behind this is due to the fact that if a student who actually did graduate from a program without failing or dropping out of the University of Phoenix, then that student could apply for a position with companies that have hired former University of Phoenix graduates. But, the University of Phoenix doesn’t want to include such human resources information on its web site because they would clearly be sued for false advertising. The truth is, any University of Phoenix degree is “useless,” and not a single company wants to hire a University of Phoenix graduate straight out of college. Companies would rather hire graduates from state public and private colleges or universities and never a University of Phoenix graduate.Here is one question you can ask yourself if you want to enroll at the University of Phoenix because the University of Phoenix is not going to post information on its web site regarding graduates who actually graduate from their programs. The reason they don’t want to post such information is because they can be sued for false advertising!What companies can you work for with your University of Phoenix degree? To further prove this, call up an enrollment counselor and they won’t tell you about any company that will hire you after you graduate. Why? Because if they told you that you can get hired at the University of Phoenix and you graduate with your University of Phoenix degree and then apply for a position with the University of Phoenix and not get hired, that would be considered a lie, fraud, and false advertising!Call 866-766-0766 today and ask an enrollment counselor what company you can work for with your University of Phoenix degree once you graduate.Here is the biggest joke of it all! The University of Phoenix does not hire its own graduates unless you can prove to them that you have not committed fraud in the past with your previous employer. If you want more information on a University of Phoenix employment application, please use the link below:http://www.apollogrp.edu/careers/Application.pdfThe Majority of U.S. Companies Will Not Hire University of Phoenix GraduatesIn a 12-Month Corporate Preference Study Held with Human Resources Professionals conducted by the Online University Consortium, 65.3% of the companies and organizations that participated in this study “WOULD NOT” hire a University of Phoenix graduate. That’s a big number! This information was taken directly from the Online University Consortium’s web site at URL: http://www.onlineuc.net/prefstudy.html.So, how can the bad economy be the problem if 65% of companies in the United States don’t want to hire any University of Phoenix graduate period!No Information About Their Faculty The University of Phoenix Online doesn’t provide a list of its faculty members by name, by department, by program that they teach in, or their educational qualifications. How do students know if they are learning from someone who is real and not “fake?” How do students know if they are not learning from a “facilitator” who may have received his or her degree from another diploma mill? Would you want to learn from a “facilitator” who got their degree from a diploma mill? Masters degrees and Ph.D degrees can be purchased by diploma mills!The reason why the University of Phoenix doesn’t post a list of its faculty is obviously due to the fact that none of their faculty holds any type of educational qualifications! If faculty members did possess such education credentials, then the University of Phoenix would clearly provide that information on their fraudulent web site right? Falsely Advertises AccreditationThe University of Phoenix falsely advertises in its online advertisements that they are a “fully-accredited” university. How can this university be fully-accredited with only its “institutional accreditation” provided by The Higher Learning Commission and no “programmatic accreditation” for any of its Information Technology programs? There are two types of accreditation; “institutional accreditation” and “programmatic accreditation.” As a college student, you want to enroll in a program of study that has its “programmatic accreditation” because this type of accredit
ation assures students that the education they will receive meets the requirements of the programmatic accreditor so that graduates from a program of study can become gainfully employed after graduation. “Institutional accreditation” is there only to ensure that the college and/or university is able to receive Title IV funding or student financial aid. “Programmatic accreditation” ensures that the education you receive will be of the highest quality and this is very important when considering a college program because after you graduate from a program that has its “programmatic accreditation,” you will become gainfully employed in your field of study after graduation. The University of Phoenix has its “institutional accreditation” provided by The Higher Learning Commission but the majority of the programs that the University of Phoenix offers doesn’t have its “programmatic accreditation.”The Higher Learning Commision Vice President for Accreditation Relations, Karen Solomon, is the corporate liaison for the University of Phoenix. I wonder why? To get paid millions for defrauding students who want to better their lives all the while, keeping her mouth shut?Here’s something suspicious to wrap your brain around. There is a regional accreditor called the Distance Education and Training Council (http://www.detc.org/). The University of Phoenix relies heavily on distance education (online learning) to make its biggest profits but, the Distance Education and Training Council does not want to give the University of Phoenix its “institutional accreditation.”The majority of online colleges and universities, especially for-profit institutions, all have its “institutional accreditation” with The Higher Learning Commission, and not the Distance Training and Education Council. I wonder why? Also, the majority of for-profit colleges and universities don’t have its “programmatic accreditation” for most of the programs that they offer. I wonder why? Simply because programmatic accreditors don’t accredit programs of study that offers a poor quality of education that the University of Phoenix and other online colleges provide!If you are going to be a provider of online education, you should seek “programmatic accreditation” for all programs that you offer to potential college students!More Than 9,000 University of Phoenix Students Have Defaulted On Their Student Loans in 2007Read more on this number here: http://wdcrobcolp01.ed.gov/CFAPPS/COHORT/cohortdata_detail.cfm?Record_ID=4963&record=1&datarates.recordcount=1 This high number could mean a lot of things but the majority of these students who are in default on their student loans are former graduates holding a “worthless” degree that cannot get them a job in the field that they studied in to pay their student loans back because these graduates didn’t learn anything in their programs of study.And don’t blame the economy either because this number was taken 2 years ago! I wonder what that number is today? Clearly more than 20,000 University of Phoenix former students or graduates are in default today on their student loans.Let’s look at other colleges and universities because everyone wants to know public information provided by the government. Let’s look at a few public and private colleges and universities, we’ll throw in ivy-league colleges as well, and let us see how many students have defaulted on their student loans in 2007:University of Hawaii at Manoa – 66California State University – Los Angeles – 49Arizona State University – 355University of Colorado at Boulder – 84Washington State University – 134Florida State University – 194Ohio State University – 322Loyola Maramount University – 20Hawaii Pacific University – 38Harvard University – 13Yale University – 14University of Phoenix – 9,941Here’s the catch, something to think about. University of Phoenix graduates don’t enroll in a program of study to default on their student loans after graduation, or consider filing for bankruptcy after graduation, or apply for a minimum wage job with their University of Phoenix degree. University of Phoenix graduates enroll to master the knowledge necessary to become gainfully employed in their field of study after they graduate. The problem lies within the poor quality of education being delivered to graduates because they cannot get hired in their field of study with their University of Phoenix degree because the majority of the associates, bachelors, masters, and Ph.D programs that they University of Phoenix offers does not have its “programmatic accreditation.”The United States Department of Education, the Council for Higher Education Accreditation, the United States Department of Congress, and The Higher Learning Commission, as well as many other criminal organizations that operate “behind the scenes” are all involved in this huge “Education Scam Ponzi Scheme.”

s_corp - December 30, 2009 at 7:07 pm

Ha ha!! Wow Karen! It’s like you were the prosecutor here! You’re cracking me up!