UPDATE 2-U.S. government probing allegations against DeVry

(Updates share fall, adds company comment, analyst comment, index detail)

NEW YORK, May 19 (Reuters) - The U.S. Justice Department has asked DeVry Inc (DV.N) to hand over documents regarding recruiter evaluation and compensation, the education company said on Monday, sending its shares down as much as 7 percent.

DeVry said it was cooperating with the request, received on May 2 in connection with allegations that the company may have submitted false claims to the Department of Education.

Schools are prohibited from compensating recruiters based on the number of students they enroll.

"We do not know the source for what may have prompted this," said DeVry spokesman Bill Strong.

The Justice Department has not asked to interview anyone, Strong said.

"DeVry's recruiter compensation is structured in accordance with all governing rules and regulations," DeVry Chief Executive Daniel Hamburger said in a statement.

Robert W. Baird analyst Amy Junker wrote in a note to clients that the Justice Department investigation was probably a routine matter into an accusation that is commonly made but hard to prove, and therefore presents a buying opportunity.

"We would be buyers on any weakness in the stock," wrote Junker who has an "outperform" rating on DeVry and a price target of $70.

Shares of Oakbrook Terrace, Illinois-based DeVry were down 3.4 percent to $54.76 in midday trading on the New York Stock Exchange after falling as low as $52.40 earlier in the session.

The shares are down nearly 12 percent this year, compared with a decline of 30.4 percent for the Standard & Poor's education services index .GSPEDUS. (Reporting by Helen Chernikoff, editing by Maureen Bavdek and John Wallace)