It is said students did not need to have completed assignments
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A British university has been helping the Israeli authorities with an inquiry into the alleged improper issuing of degrees in the 1990s.
The inquiry relates to the former University of Humberside, now part of the University of Lincoln.
Lincoln said it "is not aware that any past or current member of its staff in Britain is involved in any way in alleged fraudulent activities".
Police in Israel say a number of people have been arrested and released.
So far no-one has been charged with any offence.
Franchise
Thousands of BAs and MAs are said to have been issued to government officials in Israel, including 350 teachers. The incentive is that graduates earn more than non-graduates.
Numerous franchise offices are said to have been operated, in one case from a petrol station, a police spokesman said.
In a statement, Lincoln said: "The university has been helping the Ministry of Justice in Israel over allegations of fraudulent activities outside of the university's control.
"These include the allegation that some government employees in Israel hold forged degree certificates from the University of Humberside which were fraudulently awarded without the knowledge of the university."
It said that because of its concerns and suspicions of irregularities, it had informed the Higher Education Council in Israel in July 1999 that all student recruitment had ceased with immediate effect.
It saw the last of the students through their studies in 2002.
This week, a police superintendent told an Israeli parliamentary committee that a variety of scams linked to the university had been identified, The Times reported.
"Three hundred and fifty teachers were accepted by the Humberside branches for masters degree studies before completing their bachelors degree," he said.
"Humberside gave some of those students credit for having done courses without actually having studied for a bachelors degree."