North Greenville University, a nonprofit Baptist institution in South Carolina, has agreed to pay $2.5 million to resolve allegations that it violated the federal prohibition on colleges paying bonuses or other incentive compensation to recruit students.
— The Justice Department announced Monday it had signed onto a whistleblower’s lawsuit against the university. Federal prosecutors accused the school of hiring a company that it partially owned, Joined Inc., to recruit students and paying the company based on the number of students who enrolled. The company, which is now defunct, also provided recruiting and marketing services to other Christian colleges and universities.
— North Greenville University did not admit any wrongdoing as part of the settlement, which was unsealed by a federal judge earlier this month. Maurice Shoe, who co-owned the recruiting company, initially filed the whistleblower complaint under the False Claims Act and will receive $375,000 as part of the agreement.