Education Department probes financial aid compliance at eight colleges involved in bribery scandal

The Department of Education is investigating how closely financial aid regulations have been followed at eight prestigious universities involved in the college admissions bribery scandal.

Those schools already were being investigated by the Justice Department in its criminal case against 50 parents, coaches and other officials accused of conspiracy, bribery and fraud in a multimillion-dollar scam that landed children of the rich and famous at some of the best colleges in the country.

Yale University President Peter Salovey on Tuesday posted a statement on his school’s website acknowledging the new federal probe.

“Yesterday, the Department of Education informed the university that it is initiating a ’preliminary investigation’ into whether Yale and seven other universities, whose employees or applicants were named in the federal bribery investigation, have complied with regulations and requirements pertaining to the federal student aid program,” Mr. Salovey said, adding that Yale would respond “as appropriate” to the request.

Representatives for Yale, Wake Forest University, the University of Southern California and the University of Texas at Austin confirmed Tuesday to The Washington Times that the Education Department had informed them of the investigation by letters.

The Education Department also sent letters to the presidents of Stanford University, Georgetown University, the University of San Diego and the University of California at Los Angeles informing them of the investigation, according to Politico, which first reported about the probe Monday night.

The letters indicate that Education Secretary Betsy DeVos is looking into whether any of the universities broke federal financial aid rules in performing lax oversight of an admissions system that was ripe for abuse.

The letters were signed by Jeff Appel, Education’s chief enforcement officer, and directed the schools to hand over documents such as promotional materials and athlete recruitment regulations within 30 days. Penalties could include cutting an institution’s access to Pell Grants and federal student loans.

Court documents filed in the Justice Department’s Operation Varsity Blues investigation note that each school has received more than $10,000 in federal grants.

On March 12 federal prosecutors announced charges in a 10-month federal probe of a college admissions firm that promised well-heeled parents a “side door” into the country top universities for their children.

William “Rick” Singer, founder of the Edge College & Career Network LLC of Newport Beach, California, orchestrated the scam, which prosecutors said netted more than $25 million in bribes. Singer has pleaded guilty to racketeering, money laundering and obstruction of justice.