Oral Roberts University Agrees to Education Fraud Settlement

Oral Roberts University will pay $303,502 to resolve allegations it violated the False Claims act by not complying with the Education Department’s ban on incentive-based compensation, the Justice Department said June 5.

The settlement resolves allegations that the Tulsa, Oklahoma-based university hired a company to recruit students, and compensated the company with a share of the tuition received from the enrollment of those students, the DOJ said.

The Higher Education Act prohibits educational institutions from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment, according to DOJ.

The claims ...