On July 23, 2012, Universal Technical Institute, Inc. ("UTI") announced that it was being investigated by DOJ. The investigation was spurred by a qui tam complaint filed by a former employee who alleged that the company had violated the incentive compensation rules. UTI is also being investigated by the Department of Labor based on allegations from the same employee that his employment was improperly terminated. The qui tam complaint has not been unsealed, so it is unclear whether the allegations are based on the previous incentive compensation regulations, or those adopted by DOE last year. Nor has DOJ made a determination regarding whether it will intervene.
Likewise, on October 15, 2012, Bridgepoint Education, Inc. ("Bridgepoint") announced that it was being investigated by DOJ. The DOJ's letter indicated that it was investigating Bridgepoint's compensation of its admission personnel. DOJ indicated that it was considering implementing a formal process to obtain evidence and that it was open to a voluntary presentation from Bridgepoint, provided that any such presentation include specific admissions personnel whose compensation was reviewed in DOE's most recent audit report.