Timeline of the just-settled 12-year fraud case against Academy of Art University in S.F.

"Dec. 21, 2009: Four Academy of Art University recruiters — Scott Rose, Mary Aquino, Mitchell Nelson and Lucy Stearns — sue their employer in U.S. District Court in Oakland under the federal “False Claims Act” that covers allegations of government fraud.

The four allege that the school fraudulently collects millions of dollars a year from the U.S. Department of Education through federal student loans. They say the school raises or lowers their salaries by as much as $30,000 and dangles bonus trips to Hawaii based solely on the number of students they enroll, in violation of the federal ban on “incentive compensation” meant to stop schools from enrolling unqualified students who won’t repay the loans. The recruiters also allege the school falsely claims to the government that it complies with the law."