CLINTON —
Ashford University’s parent company, Bridgepoint Education, on Monday said the U.S. Department of Justice is investigating the company’s compensation of its admissions personnel.
The company, in a regulatory filing with the U.S. Securities and Exchange Commission, said it was evaluating a letter received on Oct. 10 stating the department is considering a formal process to obtain evidence as part of its investigation.
The investigation will include specific admissions personnel whose compensation was reviewed in conjunction with the Department of Education Office of Inspector General's most recent audit report, according to Monday’s filing.
“The company is evaluating the letter and intends to cooperate with the request made by the Justice Department. Pursuant to company policy we are not able to comment further on this matter at this time,” the filing stated.
Other for-profit universities, such as the University of Phoenix, have been scrutinized for allegedly violating a law that prohibits companies from paying recruiters based on the number of students they enroll.
The announcement comes three months after Ashford was denied initial accreditation by the Western Association of Schools and Colleges for not complying with certain standards, including spending more money on student recruitment than education.
The accreditation denial was followed by increased scrutiny from Ashford’s current accrediting body, the Higher Learning Commission.
Last month, Bridgepoint cut 450 admissions jobs and reassigned another 400.
Since the accreditation denial in July, Bridgepoint’s stocks have lost half their value.
Local News
Ashford parent Bridgepoint under investigation
Department of Justice is probing company’s compensation of admissions personnel
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