US Recruiter Settles Federal Case Over Commission Payments to UK Universities

A US-based agency that connected American students with universities in the UK has agreed to settle a legal dispute with the federal government over how it was paid for its services.

The case focused on Study Across the Pond and its founder, John Borhaug. Authorities argued the company’s payment arrangements led to violations of the False Claims Act because some of the students involved were using US federal financial aid.

According to the United States Department of Justice, the recruiter received payments tied to the number of students it enrolled at British universities — something that isn’t allowed under US education funding rules. Those rules, part of Title IV of the Higher Education Act, prohibit institutions that benefit from federal aid from paying commission-based incentives for recruitment.

The government claimed the arrangement was structured in a way that concealed the true nature of the payments. Since 2015, the company is said to have earned tens of thousands of dollars from placing American students in degree programmes at nearly 30 UK universities.

The legal action began after a whistleblower raised concerns. The whistleblower’s lawyer, Poppy Alexander, described the matter as complex and noted that cases involving overseas universities are rare.

Several institutions were listed in the complaint, including the University of Exeter and the University of Leeds, among others.

The settlement brings the dispute to a close, but the case highlights growing scrutiny around how international student recruitment is handled when US federal aid funding is involved.