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Feds Probe DeVry Sales Tactics

Investigators probe recruiters' compensation

May 20, 2008

DeVry • Feds Probe DeVry Sales Tactics • Multi-State Agreements Reached in Student Loan Investigation • Class Action Against DeVry --- • Consumer complaints

Federal agents investigating how recruiters for DeVry University were compensated have submitted a request for internal documents.

The company, which operates a chain of for-profit educational institutions, said it would cooperate with the probe.

"As part of our long-standing commitment to quality and integrity, we believe that DeVry's recruiter compensation is structured in accordance with all governing rules and regulations," said Daniel Hamburger, president and chief executive officer of DeVry.

"Since 1982 DeVry has had a comprehensive compliance program to ensure adherence with federal and state regulations and standards. These measures include dedicated regulatory and compliance personnel, standardized policies and procedures, and a system of internal quality control and audit," Hamburger said.

The Department of Justice, Civil Division, requested that DeVry voluntarily furnish documents and other information regarding its policies and practices with respect to recruiter compensation and performance evaluation.

The request was made in order to examine allegations that DeVry may have submitted or caused the submission of false claims or false statements to the U.S. Department of Education.

At issue is whether Devry violated DOE rules that ban compensation to recruiters based on the number of students they enroll.

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