AUGUSTA, Maine (AP) - Former Maine Gov. John McKernan says he’s not familiar with the $95.5 million settlement with a Pittsburgh firm he once headed that runs for-profit trade schools and colleges.
The Justice Department says the settlement resolves allegations that Education Management Corporation used enrollment incentives to pay its recruiters and exaggerated its career-placement ability.
McKernan, husband of former Sen. Olympia Snowe, is a former president and CEO, and chairman of the board of directors. He said Monday that he retired as chairman of the board in 2012, and isn’t familiar with rationale for the settlement, which contains no admission of wrongdoing.
U.S. Attorney General Loretta Lynch says the company acted as a “recruitment mill.” The agreement calls for EDMC to forgive nearly $230,000 in loans for approximately 244 Maine former students.
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