Skip to content
Advertisement

DeVry accused of deception, fraud

Advertisement
 (184698)

Claims such as “… 90 percent of our students seeking employment in their field are hired six months after graduation” have resulted in fraud charges being leveled against DeVry University, which operates campuses in Palmdale, Anaheim and in San Diego.

The Federal Trade Commission (FTC) is suing the for-profit college chain for allegedly lying about its student’s job prospects and earning potential. Edith Ramirez, chairwoman of the federal organization, said papers were filed this week in federal court in Los Angeles.

“Educational institutions like DeVry owe prospective students the truth about their graduate’s success finding employment in their field of study and income they can earn,” Ramirez said.

DeVry said it would “vigorously” contest the FTC allegations in court.

“The FTC’s complaint—filed 40 years after DeVry University began publishing accurate graduate employment statistics—is without a valid legal basis,” DeVry said in a statement. “There is no national standard for calculating employment statistics among higher-education institutions, and the measures and standards used by DeVry University to support its statistics are appropriate.”

The lawsuit indicates that “through the use of English- and Spanish-language advertisements and other marketing materials, and during sales pitches with prospective students, [DeVry] has made deceptive representations about the benefits of obtaining a degree.” Further, the complaint alleges that DeVry counted many graduates as working “in their field” when they were not, including a business administration graduate working as a server at a Cheesecake Factory restaurant. There were reportedly graduates who majored in technical management working in unpaid volunteer positions at medical centers, and a business administration graduate with a healthcare management specialization working as a car salesman. The complaint also alleges that DeVry counted as “placed in jobs” graduates who were working in the same positions prior to enrolling at the school.

The U.S. Department of Education has given notice to DeVry to halt certain advertising regarding student employment outcomes. DeVry said it would request a hearing to contest the department’s notice.

Santa Ana-based Corinthian Colleges Inc. closed and filed for bankruptcy last year amid allegations that it falsified job-placement data in its marketing materials and altered grades and attendance figures.

Advertisement

Latest