Scandal hit the college in the late 1990s over fraud in the school's financial aid department. A lawsuit against the school was brought about by Martha Faw, then the assistant director of financial aid. An investigation begun by the United States Department of Education confirmed that Pell Grants had been given to ineligible students, payments had been made to non-U.S. citizens, and guidelines for work-study programs were not followed. In 1998, Brewton–Parker College agreed to repay the government $4 million in what was said to be the largest "qui tam" recovery in Georgia history. College president Y. Lynn Holmes resigned.