Alta Colleges Settle with USA for $7M

HOUSTON (CN) - Alta Colleges will pay the United States $7 million to settle allegations that the Denver-based education company submitted false information in applying for federal student aid funds. Prosecutors said Alta's Texas schools, which are among 19 campuses the company operates in six states, lied about their job placement and interior design programs.

Denver-based Alta Colleges is the corporate parent of Westwood College. Alta also will pay $1.2 million to whistleblowers who initiated the lawsuit under the False Claims Act.

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