The Departments of Justice and Education announced they are are coordinating on on-going investigations of the University of Phoenix a day after the Pentagon barred the for-profit school giant from recruiting on military bases and placed it on probation for alleged recruiting violations.
The Department of Defense took the action after the University of Phoenix, among other things, used military “challenge coins” when recruiting troops. The commonly used and given coins—which are bigger than a silver dollar and often have unit insignia—are often given by those in the military to one another for a job well done or to commemorate an event. The University of Phoenix used trademarked seals and insignia on their coins without the consent of the military, which appears to the crux of the issue. Phoenix has said it has since stopped using such coins.
In June, the Department of Education said it had established an interagency task force, led by Under Secretary Ted Mitchell, to help ensure proper accountability for and oversight of career colleges and for-profit institutions.