A network of U.S. marketing companies run glossy websites promising jobs, health benefits, food stamps, and heating assistance -- sites with names like localemploymentnetwork.org or medicaidinsurancebenefits.com. But according to former employees of a company connected to these operations, the real purpose of these sites is a classic bait-and-switch: to get low-income people, single mothers, veterans, and unemployed older people on the telephone and push them into high-cost for-profit college programs.
Based on the accounts of these employees, and documents they have provided to Republic Report, the operations may well be in violation of federal statutes prohibiting deceptive marketing and unwanted telephone sales calls, as well as Department of Education laws and regulations barring payment of sales commissions to college recruiters. At the very least, they are guilty of using sleazy tactics to sell poor-quality products.
The for-profit college companies that have obtained leads on prospective students from these questionable operations include many of the biggest industry players: the University of Phoenix, Education Management Corp., Corinthian Colleges, ITT Tech, Kaplan, Career Education Corp., Bridgepoint, and Stevens-Henager -- all of which are currently under investigation by federal and / or state law enforcement for their own alleged internal fraudulent activities.